For clarification, Paul uses the term "monetize the debt" near the end of the interview. This refers to the Federal Reserve Bank (headed by Bernanke) buying up the bonds that the Treasury Department (headed by Geithner) continues to issue. In the last few years, the Federal Reserve (as I understand) has bought about three-fourths of the trillions of dollars of new debt instruments issued by the U.S. Treasury Department. And where does the Federal Reserve get the money to buy the Treasury bonds? It "prints" it—creates it out of thin air. This is what's known as "monetizing the debt"—increasing the money supply to buy U.S. debt instruments. And it's this "monetizing of the debt" (increasing the money supply out of thin air) that results in inflation. I don't think the average person understands the charade that's going on at the Federal level. The right hand (the Treasury) sells new debt instruments (bonds) to continue to fund the bankrupt U.S. government and the left hand (the Fed) creates money out of nothing to buy the debt. The only reason the U.S. government stays in business is by living off new borrowed money (new debt that it borrows from itself). Ron Paul is the only candidate who continually tries to expose this bankrupt policy.
This is a great interview:
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Wow, what a great video. Thanks for posting. I hadn't seen this.
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Go Ron Paul!
Daniel
http://inflation.us/largestbubblehistory.html
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