Ron Paul: US Will Default on Unsustainable Debt

U.S. Rep. Ron Paul predicts that the United States will default on its debt, plain and simple. “When a country is indebted to the degree that we’re indebted, the country always defaults,” the 2012 GOP presidential candidate said during a speech on the House floor Tuesday.

“We will default because the debt is unsustainable,” the Texas Republican said.

The best solution is to impose concrete spending cuts, said the 75-year-old Paul, who recently announced that he will resign after this term, having been in Congress since 1997.

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“The reason we don’t cut spending is, one side loves entitlements and one side loves war,” he said.

Failure to stifle that spending will propel inflation even as it erodes the dollar’s buying power, he said.

“If we don’t understand this, this default will not be because we don’t send out the checks,” Paul said. “We will send out the checks. It will be defaulted on because people will get their money back, or they will get their Social Security checks, and it won’t buy anything.”