×

FIRST ON CNBC: CNBC TRANSCRIPT: REPUBLICAN PRESIDENTIAL CANDIDATE REPRESENTATIVE RON PAUL ON CNBC’S “SQUAWK ON THE STREET" TODAY

WHEN: TODAY, WEDNESDAY, NOVEMBER 30TH

WHERE: CNBC’S “SQUAWK ON THE STREET

Following is the unofficial transcript of a FIRST ON CNBC interview with Republican Presidential Candidate Representative Ron Paul today on CNBC’s “Squawk on the Street.” All references must be sourced to CNBC.

Ron Paul's Central Banks Action Reaction

HOBBS: JOINING US NOW IN A FIRST ON CNBC INTERVIEW WITH HIS REACTION IS AN OUTSPOKEN CRITIC OF THE FEDERAL RESERVE REPUBLICAN PRESIDENTIAL CANDIDATE AND TEXAS CONGRESSMAN RON PAUL CALLING IN FROM MANCHESTER NEW HAMPSHIRE GOOD MORNING SIR

PAUL: GOOD MORNING

HOBBS: WE’RE TOLD THAT THE FED VOTED 9 TO 1 FOR TODAY’S ACTION WHAT DO YOU MAKE OF IT

PAUL: WELL THE FACT THAT THEY VOTED 9 TO 1 DOESN’T MEAN A WHOLE LOT THAT’S WHAT THEY ARE IN THE BUSINESS OF DOING AND THAT IS TO INFLATE THE CURRENCY TO TIE PEOPLE OVER AND TO PROVIDE LIQUIDITY AND PROVIDING LIQUIDITY IN A SITUATION LIKE THIS JUST MEANS THAT THEY ARE BUYING UP BAD DEBT THAT NO ONE ELSE WANTS AND THEY DO THIS BY CREATING CREDIT BUT I THINK ITS SORT OF A REFLECTION OF A PANICKY TYPE REACTION TO GET EVERYBODY DOING THIS INCLUDING CHINA THEY MUST REALLY BE WORRIED TO GET TOGETHER LIKE THIS BUT IT CAN’T BE GOOD ON THE LONG RUN ALL THEY ARE DOING IS A FORM OF WORLWIDE QUANTITATIVE EASING AND OF COURSE THE FINANCIAL MARKETS SEEM TO BE REASSURED ON THE SHORT RUN BUT THAT’S HAPPENED BEFORE SO I THINK THIS IS JUST A TEMPORARY BENEFIT I THINK ULTIIMATELY IT ALREADY HAS STARTED IT IS BAD FOR THE DOLLAR IT IS BAD FOR INFLATION PRICES WILL GO UP AND THERE WILL BE A PENALTY TO BE PAID THEY JUST CAN’T SOLVE THE PROBLEM OF EXCESSIVE DEBT OF TOO MUCH INFLATION WITH MORE DEBT AND MORE INFLATION

HOBBS: SO IF YOU WON POWER AND HAD A FED CHAIRMAN OF YOUR CHOICE WHAT WOULD YOU BELIEVE THE APPROACH SHOULD BE WHEN YOU ARE FACED WITH A LIQUIDITY CRUNCH IN EUROPE AND CLEARLY THE POSSIBILITY THAT SOME MAJOR FINANCIAL INSTITUTIONS COULD FAIL WHAT WOULD YOU DO?

PAUL: WELL YOU SHOULDN’T DUMP IT ON THE AMERICAN TAX PAYER BECAUSE WHEN WE CREATE DOLLARS AND BUY UP THIS SOVEREIGN DEBT WE ARE MORE AND LESS USING DOLLARS TO BUY OUT GREEK DEBT I MEAN PENALIZES THE AMERICAN PEOPLE WE SHOULDN’T DO THAT AND WE SHOULD ALLOW THE DEBT TO BE LIQUIDATED THAT GREECE SHOULD HAVE LQUIDATED THEIR DEBT THEY SHOULD HAVE DEFAULTED TWO YEARS AGO THEY SHOULD HAVE GONE INTO BANKRUPTCY THEY SHOULDN’T BE PROPPING THIS UP THEY KEEP PROPPING UP THE DEBT THAT’S WHY ECONOMIC GROWTH IS NOT LIKELY TO COME FOR A LONG LONG TIME

HOBBS: LET ME BRING YOU BACK TO YOUR OWN RACE 81% OF AMERICANS ARE DISSATISFIED WITH THE WAY IN WHICH THE COUNTRY IS GOING AND CERTAINLY DISSASTIFIED WITH CONGRESS WHY DO YOU THINK THAT MITT ROMNEY IS NOT ABLE TO BETTER CAPITALIZE ON THAT CLEARLY HE IS THE FAVORITE TO WIN THE GOP RACE AND YET HE IS RARELY IN THE LEAD

PAUL: YEAH I THINK BECAUSE IT IS MORE OF THE STATUS QUO I THINK ALL OF THE OTHER REPUBLICAN CANDIDATES JUST REPRESENT THE STATUS QUO MORE OF THE SAME NO CHANGE IN THE FOREIGN POLICY NO CHANGE IN THE FEDERAL RESERVE NO CUT IN SPENDING THERE IS NOBODY I AM THE ONE THAT HAS OFFERED A TRILLION DOLLARS IN CUTS BECAUSE I BELIEVE THE GOVERNMENT IS SO BIG AND SO OUT OF CONTROL THAT YOU HAVE TO HAVE REAL CUTS BUT ALL OF THIS OTHER TALK ABOUT CUTS WHETHER ITS ROMNEY OR ANYBODY ELSE IS JUST CUT AND PROPOSE INCREASES AND THAT IS WHY THE AMERICAN PEOPLE DON’T BELIEVE THAT THEY HAVE A SOLUTION WE JUST KEEP DOING EXACTLY WHAT WE’VE BEEN DOING FOR FORTY YEARS SPENDING EXCESSIVELY, RUNNING UP DEBT, PRINTING THE MONEY AND MANIPULATING INTEREST RATES AND WE’RE UP AGAINST THE WALL NOW IT DOESN’T WORK ANYMORE LOWERING INTEREST RATES IS ESSENTIALLY IMPOSSIBLE THAT’S WHAT THEY’RE DESPERATELY TRYING TO DO TODAY BUT YOU KNOW WHEN OUR INTEREST RATES TO THE BANK ARE DOWN TO ZERO WHAT ARE THEY GOING TO DO AND USED TO BE THAT CONGRESS WOULD SPEND MORE MONEY AND THAT WOULD HELP BUT HOW CAN THEY SPEND MORE MONEY WHEN THERE IS NO MONEY IN THE TREASURY SO NO ROMNEY AND THE REST AREN’T OFFERING ANYTHING NEW

HOBBS: THE MOST SUCCESSFUL INDEPENDENT CANDIDATE ROSS PEROT RAN IN THIS COUNTRY WHEN 39% OF AMERICANS WERE DISSATISFIED WITH THE WAY IN WHICH THIS COUNTRY WAS GOVERNED GALLOP NOW REPORTS THAT’S UP TO 81% MANY PEOPLE SAY THAT THE TIME IS ABSOLUTELY RIGHT FOR A THIRD PARTY OR AN INDEPENDENT CANDIDATE IN THE EVENT THAT YOU DON’T WIN THE GOP NOMINATION ARE YOU STILL LEAVING THAT OPTION OPEN THAT YOU WOULD RUN AS AN INDEPENDENT

PAUL: NO I DON’T PLAN TO DO ANYTHING LIKE THAT BECAUSE THE SYSTEM IS SO BIASED AGAINST ANYTHING THAT IS AGAINST THE ONE PARTY SYSTEM WHEN YOU PUT THE DEMOCRATS AND REPUBLICANS TOGETHER POLICIES NEVER CHANGE THE RHETORITIC IS DIFFERENT BUT THEY ALL ENDORSE THE SAME FOREIGN POLICY, MONETARY POLICY AND DEFICIT SPENDING BUT YOU CAN’T GET ON BALLOTS YOU CAN’T GET IN THE DEBATES SO THE SYSTEM IS VERY VERY BIASED I MEAN WE HAVE A VERY UNDEMOCRATIC SYSTEM THAT WE HAVE TO DEAL WITH.

HOBBS: BUT CONGRESSMAN WHILST YOU DON’T PLAN TO DO THAT ARE YOU RULING IT OUT AS AN OPTION?

PAUL: I HAVE NO INTENTION I DON’T TALK IN ABSOLUTES BUT I CAN’T IMAGINE IT IT JUST SEEMS SO UNREASONABLE I DON’T WANT TO DO IT THE SYSTEM WON’T PERMIT IT THERE’S NO LOGIC TO DOING IT

HOBBS: BUT IT IS STILL POSSIBILITY FROM WHAT YOU ARE SAYING?

PAUL: IF YOU THINK ONE OUT OF TWENTY MILLION IS A POSSIBILITY I GUESS BUT THAT’S NOT GOING TO HAPPEN.

HOBBS: GOOD TO TALK TO YOU SIR THANK YOU FOR YOUR TIME

About CNBC:

With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD+, CNBC is the recognized world leader in business news providing real-time data, analysis and information to more than 390 million homes worldwide. The network's 16 live hours a day of business programming in North America (weekdays from 4:00 a.m.- 8:00 p.m.) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC.com and CNBC Mobile Web (mobile.cnbc.com) offer real-time stock quotes, charts, analysis and both on-demand and live streaming video.

Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/