US on Rapid Path to Default, Triggering Other Countries To Dump Dollar: Former Congressman Ron Paul

Former Congressman Ron Paul says the US will inevitably be forced to default on its mountain of debt, which now amounts to more than $31 trillion.

Paul, a former presidential candidate and an icon in liberterian circles, says in a new YouTube update that the US has already been slowly defaulting on its debt for years.

He says that the effects of the US moving off the gold standard in 1971 and the subsequent endless money printing are finally beginning to manifest in practical and noticeable ways, and that the US is starting to look more and more weak to its rivals on the world stage, ultimately triggering a dump of the dollar

“So everybody [says] ‘It’s just a technicality and language’. People will say ‘Oh, well are we going to default?’ ‘No.’ One party will say ‘You guys are going to default’, ‘No, no we will never default’.

“We’re defaulting all the time, they’ve been doing it since Roosevelt. It manifests itself in different ways. But right now it manifests itself by people, now in a practical way, dealing with other currencies. And groups of countries getting together. And it’s not insignificant, it isn’t just one or two countries. So I think very definitely we have we have moved in a direction of accelerating our default.”

The former Texas representative warns that the devaluing of the dollar is about to accelerate, wihch will likely be evident by higher inflation and much higher gold prices. He says he believes that the US government is most likely manipulating the price of gold in order to make the dollar look less weak.“I would take the position that the default ongoing and it’s not going to slow up. It’s going to get worse and we have to look not only at the dvalue of the dolla reach dya, what we have to look at is the dollar/gold relationship.”

While the US has been through depressions and deficits before, Paul says that the the scale of the debt, plus the sheer amount of expenses that the country is facing, makes it a completely different situation than the 1930s.