Ron Paul Warns of Violence from Pending Dollar Crisis; Says Israel Strike on Iran the Trigger

October 1st, 2009 11:20 AM

Scary times ahead? Perhaps, if you take credence in what Rep. Ron Paul, R-Texas, says.

 

Paul, who had a strong grassroots following during the 2008 presidential election, explained on Glenn Beck’s Sept. 30 radio program that perilous times lie ahead due to the Federal Reserve’s loose monetary policy. Host Glenn Beck asked how an Israeli strike against Iran might trigger problems with the American financial system.

 

“What happens when Israel strikes Iran or Iran has the earth rays and we know that they now have a nuclear weapon, what happens to our financial system at that point?” Beck asked.

 

The libertarian Paul maintained China would become the world’s financial heavyweight and they were already making preparations to be the world’s top dog.

 

“I think the Chinese take over,” Paul said. “If there’s a real panic and oil shoots up to a couple of hundred bucks, the Chinese will dump their dollars. Chinese are maneuvering for this. The more we threaten Iran, the stronger the Chinese influence gets because they're using the dollars that they have earned from us and saved, they have a trillion, and they are starting to buy up assets in Iran and build plants and get involved in their energy. So the whole thing is backfiring on us. We’re getting ready to put tougher sanctions on the Iranians and that will make things that much worse. It won't help the dissidents in Iran. It's going to cost us a lot of money, and there will be a bombing and that will be a big, big event. I think it will crash the dollar is what I think it would do.”

 

And what does the country look like after the dollar crashes?  Not good the Texas congressman said.

 

“We think it was bad with the financial crisis,” Paul said. “When you have a dollar crisis, the whole thing quits functioning. The checks bounce and literally the federal government's checks bounce if you have – if inflation goes up.”

 

But the situation deteriorates even more Paul – with states leaving the union.

 

“I think we’re going to have a de facto 10th Amendment, secession,” Paul said “People are just going to ignore the federal government because they won’t – and there’s, you know, a total loss of credibility.”

 

Beck alluded to media charges and warnings from others that there would be violence and contended the right is being set up to take the fall for it.

 

“Congressman Paul, the media and even [Rep.] Patrick Kennedy said this, we heard this from two people, Muammar Gaddafi and I believe the other one was Ahmadinejad that both spoke last week and they – we’re hearing it all the time that there’s going to be violence here in America, that people are targeting,” Beck said. “Basically everyone is going to blame this on the right, any kind of violence.”

 

There would be violence, but not before a dollar crisis happens as some Democratic politicians and media personalities have warned, but afterward Paul said.

 

“I think that there will be violence,” he explained. “I hope we don’t have to go through, you know, a very violent period of time, but that's what happens too often when the government runs out of money and runs out of wealth, the people argue over, you know, a shrinking pie and, of course, the people who have to produce are sick and tired of producing.”