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

Former Congressman Ron Paul believes the United States will be forced to default on its mountain of debt, which now totals more than $31 trillion.

Paul, a former presidential candidate and libertarian icon, claims in a new YouTube update that the United States has been gradually defaulting on its debt for years. He claims that the effects of the US abandoning 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 beginning to appear increasingly weak to its global rivals, triggering a dollar depreciation.

“Everyone says, ‘It’s just a technicality and language.'” ‘Oh, well, are we going to default?’ people will say. ‘No.’ One party will say, “You guys are going to default,” and the other will say, “No, no, we will never default.”We default all the time, and they have done so since Roosevelt. It manifests itself in various ways. But, for the time being, it manifests itself through people dealing with other currencies. And the coming together of countries. And it is not insignificant; it is not limited to just one or two countries. So I believe we have definitely moved in the direction of accelerating our default.”

The former Texas representative warns that the dollar’s depreciation is about to accelerate, as evidenced by higher inflation and much higher gold prices. He believes that the US government is most likely manipulating gold prices in order to make the dollar appear stronger.”I would argue that the default is continuing and will not abate.” It will get worse, and we must consider not only the dvalue of the dolla reach dya, but also the dollar/gold relationship.”

While the United States has experienced depressions and deficits in the past, Paul claims that the magnitude of the debt, combined with the sheer magnitude of the country’s expenses, makes it a completely different situation than the 1930s.