By Michael O'Brien - 06/28/11 10:00 AM EDT
Rep. Ron Paul (R-Texas) said Monday that bankruptcy could be the best solution for the United States to address its mounting debt.
Paul, the libertarian Republican presidential candidate, suggested that bankruptcy would be a good option — as would, short of that, refusing to repay obligations to the Federal Reserve.
"Are we going to experience — are you predicting, in essence, if bankruptcy is the cure for Greece, is it also the cure for the United States?" asked host Jan Mickelson.
"Absolutely," Paul responded.
The Texas congressman has been a longtime critic of fiscal and monetary policy in the U.S. Paul has called for allowing gold and silver currency to compete openly with the U.S. dollar. He said he wasn't dreading the potential default on U.S. debt in early August because, in his view, the U.S. was constantly defaulting due to inflation-related devaluation of the dollar.
One solution, Paul said, would be to eliminate the Federal Reserve, and in turn, wipe out the debts owed to the Fed.
The comments are nothing if not consistent for Paul, who's said that he won't vote to raise the debt limit. He said that he didn't actually expect fellow lawmakers to follow his lead and allow default, but that if the U.S. were to default on its obligations to the Fed, it "might reassure the bondholders."
Speaking in the key primary-cycle state of Iowa, Paul even suggested that the Chinese government had even become more capitalistic than the U.S. government.
"You could make the case today for China being a more capitalistic country than the United States," he said. "That's where our businesses are going; it's easier to start a business."