Bloomberg News

‘No Doubt’ U.S. Debt Ceiling Will Be Raised, Ron Paul Says

July 29, 2011

July 29 (Bloomberg) -- U.S. Representative Ron Paul, who said he is opposed to the government’s deficit financing, said he has “no doubt” lawmakers will vote in favor of raising the nation’s debt ceiling.

While the vote may not come today, “there’s no doubt they will raise the debt limit and we will go back to spending again,” the Texas Republican told Bloomberg Television in an interview. “We’re not going to fail to pay our interest and take care of the bond market. But, we are going to fail to protect the value of our currency.”

Democrats and Republicans have been wrangling over whether to raise the limit on federal government debt, with the administration of President Barack Obama warning that failure to strike a compromise risks the U.S. defaulting on its debts as early as Aug. 2. The House is preparing to vote on Speaker John Boehner’s debt-ceiling increase.

“This deficit financing and big government spending cannnot be maintained,” Paul said today. “We ought to ask, what should our government be doing? Should our government be the policeman of the world? Should the government be running an entitlement system which it can’t afford? Or should we obey the constitution and just live up to our promises?”

He accused those pushing for an increase in the limit of scaremongering, and said companies that were lobbying for an increase had vested interests because many were “on the dole” through big government contracts.

To contact the reporter on this story: Megan Hughes in Washington at mhughes43@bloomberg.net

To contact the editor responsible for this story: Ben Richardson at brichardson8@bloomberg.net


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