In an interview on FOX Business Network, Representative Ron Paul (R-TX) said he “never doubted for a minute” the government would bailout the states. Paul said while he wishes he could promise that he won’t allow the Federal Reserve to buy municipal bonds, he believes the government’s attempts to bailout state pension funds “has already started.”
Here are the key highlights from the interview, courtesy of FOX Business Network:
On whether he believes the government will attempt to bailout state pension funds:
“I think it has already started. The states have already received 40 billion to deal with their pension funds. Indirectly they are doing this and I think they will. If they can bailout General Motors and everybody else they are going to bail out the states. I never doubted for a minute they would bail them out. It’s also the reason we can anticipate a dollar crisis and higher interest rates in the future.”
On whether he will allow the Federal Reserve will buy municipal bonds to bailout states:
“I wish I could say absolutely I won’t allow them to do it but I am afraid your prediction might come true.”
On whether as Chairman of the Monetary Subcommittee he will invite Ben Bernanke to appear at hearings:
“I haven’t planned to do that but he is obligated to come before our committee at least twice a year.”
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