Ron Paul: "0% Chance Of 'Grand Bargain' Over Fiscal Cliff"

Tyler Durden's picture

Shining a little reality light on the otherwise pollyanna-like dearth of pragmatism that is the mainstream media's guest-list, Ron Paul provided Bloomberg TV's Trish Regan a little more than we suspect she bargained for when asked if he had any hope that we avoid the fiscal cliff. The constant "delaying-of-the-inevitable" enables our politicians to avoid facing up to the serious consequences of our reality and as Representative Paul notes the chances of a grand bargain are "probably zero... that's why I think we're over the cliff [already]." Just like the handling of the debt ceiling debacle, Paul notes they will "pretend they are going to do it" until we get a total crash of the dollar and the entire financial system (which he notes is what will occur if we continue the status quo). "We are at a point of no return" unless certain things change, since "we are not the productive nation we used to be."

Paul on the fiscal cliff and whether politicians are under more pressure to just do what they need to do to get votes:

"Well I think that's true and I think it's been that way for a long time but the big difference is the Treasury is bare. It isn't like we're in the 1950s and 1960s where economic growth could work our way out of these problems that you could print money forever. Printing the money right now, what does it do, it fills the banks with excessive reserves and they get paid to park it at the Federal Reserve. So it's quite different. We're not the productive nation we used to be…we have a lot of jobs gone overseas. Our dollar is weakening because prices do go up and as long as we do that, the politicians are going to keep pushing that and trying to get away with that but the big question is how long will politicians will be able to get away with that."

On the probability that a grand bargain will be reached on the fiscal cliff:

"Probably zero… that's why I think we're over the cliff. We're past bargaining states because they will not address those things I just stated. They're going to try to pretend that they are going to do it. The way they handled the debt increase, last summer, that is a pretty good example. And matter of fact the debt increase might be the big event come February that might be big because they can roll things over…they can postpone big decisions in January and yet that still does not remove the uncertainty. Uncertainty is a major cause of the inability for the market to get moving again and they have to revamp it in a much more detailed fashion than they are even talking about right now."

On whether Obama will be able to bring Congress together for some kind of reform before the end of the year:

"Oh no, I think there will be something, but it will be very temporary, it won't be long lasting and restore confidence and fix the problem. But there will be some type of reconciliation of saying we'll do this and a little of that and it may even help the financial markets for a little while, but since it won't solve the problems it will only be temporary. "

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ACP's picture

After the Fall of the Roman Empire, the people who picked up the pieces formed city-states and one city, Venice, was able to create a business empire that lasted twice as long as the Roman Empire. Whether or not something similar will happen in the near future is yet to be seen, but I'm sure we'll see something within the same framework.

You'll be surprised how resilient a lot of middle class folks will be (in my opinion) and how willing they will be to move towards a society built on personal responsibility. When it's the life of yourself and your family, there will be a lot more who decide not to be a part of the horde. Not to say the horde won't be incredibly menacing...'s picture

If what you said was untrue mankind would have died out millenia ago.

Winston Churchill's picture

Little gap of 600 yrs in between.

Usualy called the"dark ages".

Seer's picture

"Shotguns are very advised when the hoard comes looking for the people that have fed them all these years"

Chuck!  You're a farmer too (or you work for Monsanto)?

Radical Marijuana's picture


History of the Khazar Empire put in perspective, ESPECIALLY in the LAST HALF HOUR of that documentary.

The best organized gangs of criminals tend to either wipe each other out, or merge into some partnerships.

Death and Gravity's picture

Give me a break.. the MSM is already pumping rosy optimism over a compromise in the works. Right, as if it didn't take 2 months of screamfest deadlock between the power duopoly to pick the low hanging fruit for achieving a NEGATIVE budget trimming last summer.

Time for the popcorn, boys, but don't go short just yet.

zorba THE GREEK's picture

Ron Paul has been in the Senate for a very long time. He knows the ins and outs.

He doesn't BS. If he says no chance for a grand bargain, I'd put stock in that and 

invest accordingly. 

TruthInSunshine's picture

Hmmmm...Joe Weisenthal or Ron Paul? Joe Weisenthal or Ron Paul?

It's awfully close, but I think I'll have to side with Ron Paul here.

Bollixed's picture

That's weird to see Joe Weisenthal and Ron Paul mentioned in the same sentence.

One is arguably the last Statesman standing, and the other is a LSM clown who has to ask permission to use the restroom.

That's quite a juxtaposition there...

TheSettler's picture

Senate....what kind of shapeshifter are you....

Doubleguns's picture

Settler, Your are so kind.  I was thinking a lot worse.

nmewn's picture

He was in the House, not the Senate. The term "Congress" means both House & Senate.

See what the MSM/government propaganda does? It conveniently leaves the do-nothing Senate in the shadows to work their "magic".

Which brings up another thing I've been mulling over...just why is it, that we have a former senator as president, a former senator as vice president, a former senator as secretary of state and the talk is...they want a former senator to join them and be defense secretary?

Prolly just me thinking these little connect the dots thingy's ;-)

piceridu's picture

No free thinking outsiders allowed into the exclusive club...just think, President Clinton's fucking wife, dragged in on his coat tail, became a senator of NY and is the Secretary of State of the United States of the late great George Carlin said very eloquently..."It's a big club and you and me aren't in it". Gives a new meaning to insider trading...(traitors).

DaveyJones's picture

and she stood by while he screwed everything breathing so that proves she's a woman of integrity, strength and principle 

and nmewn makes an interesting point. The Congress suggests things and the Senate usually kills them. It's a very special club 

nmewn's picture

We have waaaay too many former senators in the executive branch of government. They all think the same...not good.

A peacock mentality.

DaveyJones's picture

I wish they were peacocks. Peacocks are easy prey

SoCalBusted's picture

Apparently she really wasn't much of a "fucking wife", at least based on Bill's activities.

New_Meat's picture

We, here in the Commonwealth, are ardently enthusiastic that John Forbes Kerry, (who, by the way, served in Veet-Nam) take on his destiney role as SecDef.  Or SecState, or whatever.

And how dare you, Sir, to challenge the reputation of the most exclusive debating club in the World?  Shame, Shame I say (although Saul A. abrogates shame as a useless emotion, don't cha' know.)

Lots of people know that the Commonwealth fucked up to vote Liawatha into office.  But, without Barry on the Ticket, Scott could return and represent normal people.

- Ned

{whistling past the graveyard, I fully acknowledge}

nmewn's picture

Shame, Shame I say (although Saul A. abrogates shame as a useless emotion, don't cha' know.)

Yes, it seems to be working in some quarters...its really a damned shame.

Once upon a time, no one had their hand out unless they were close to deaths door, despondent, helpless. Now, its gimme. From corporate to the projects.

Really is, a damned shame. Maybe shame is way overdue for a comeback.

Chuck Walla's picture

Really is, a damned shame. Maybe shame is way overdue for a comeback.

Shame won't be back until murder and robbery are holding full sway first.


nmewn's picture

"Every normal man must be tempted, at times, to spit on his hands, hoist the black flag, and begin slitting throats." - H L Mencken

TruthInSunshine's picture



"Sure, cried the tenant men,but it’s our land…We were born on it, and we got killed on it, died on it. Even if it’s no good, it’s still ours….That’s what makes ownership, not a paper with numbers on it."

"We’re sorry. It’s not us. It’s the monster. The bank isn’t like a man."

"Yes, but the bank is only made of men."

"No, you’re wrong there—quite wrong there. The bank is something else than men. It happens that every man in a bank hates what the bank does, and yet the bank does it. The bank is something more than men, I tell you. It’s the monster. Men made it, but they can’t control it.”

~John Steinbeck, The Grapes of Wrath



“The bank - the monster has to have profits all the time. It can't wait. It'll die. No, taxes go on. When the monster stops growing, it dies. It can't stay one size.”

~John Steinbeck, The Grapes of Wrath



“And the great owners, who must lose their land in an upheaval, the great owners with access to history, with eyes to read history and to know the great fact: when property accumulates in too few hands it is taken away. And that companion fact: when a majority of the people are hungry and cold they will take by force what they need. And the little screaming fact that sounds through all history: repression works only to strengthen and knit the repressed. The great owners ignored the three cries of history. The land fell into fewer hands, the number of the dispossessed increased, and every effort of the great owners was directed at repression. The money was spent for arms, for gas to protect the great holdings, and spies were sent to catch the murmuring of revolt so that it might be stamped out. The changing economy was ignored, plans for the change ignored; and only means to destroy revolt were considered, while the causes of revolt went on.”

~John Steinbeck, The Grapes of Wrath


“And this you can know - fear the time when Manself will not suffer and die for a concept, for this one quality is the foundation of Manself, and this one quality is man, distinctive in the universe.”

~John Steinbeck, The Grapes of Wrath





A Lunatic's picture

If only we could find a way to reconcile shame and what's in it for me...................

XitSam's picture

I've often wondered about Obama's strategy on the Senate. Could it be "keep your enemies closer"? To defang the power brokers?  To get back into the Senate, they would need to wait until the right time and probably challenge an existing Democrat.

CaptainObvious's picture

Oh goody, Jon Corzine will fit right into the new cabinet seeing as how he's a former senator too.  Hail, hail, the gang's all here...

Voltaire's picture

What he is really saying is that there will not be a grand bargain of his liking, that is a return to gold standard, cut in military and welfare spending etc. But we will of course see a grand bargain. Not the one Ron Paul favours though. And me neither. 

you enjoy myself's picture

we'll see a grand bargain, but one where all the "cuts" are 10 years out and are really reductions in the rate of growth instead of actual cuts.  the market will rejoice, burn the shorts, and then everything collapses in 2013.

willwork4food's picture

Could be. But one of the historic ironies of the end of the Roman Empire was not that it was going to end, but that it took so long for it to end.

centerline's picture

The difference now is that information travels by speed of light instead of horseback.  Money disappears at the same speed now as well.

XitSam's picture

In other words, Greece for the last 18 months.

xtop23's picture

No thanks to the Gold standard. That we DO NOT want. Competing currencies in the US is what we want and what Paul advocates. At least in the short to medium term. A true return to the Gold standard is fraught with peril.'s picture

And certainly no bimetallism. A competing currency standard would let gold and silver fluctuate against each other along with any other currency in use which would lessen the chance of anyone being Crucified on a Cross of Gold.

xtop23's picture

I'm genuinely surprised I got even a single down arrow for my statement. I didn't think it was the least bit controversial and obvious common sense.

If they truly understood how easily such a thing could be manipulated, by the very powers they would wish to free themselves from, I suppose they'd feel differently.

A true Gold standard isn't the answer folks. Although, I agree almost anything would be an improvement ( at least in the short term ) over the current system.'s picture

Perhaps you've picked up a serial down voter. It's all the rage. If you post something along the lines of "Harrisburg is the capital of Pennsylvania" and receive down votes there's a good chance that you've got your very own mischievous shadow.

xtop23's picture

 I'm not worried about the down arrow per se. I was just sort of a bit incredulous that anyone could legitimately be that dense. 

 If they want to junk me for grins they can knock themselves out.

CaptainObvious's picture

Harrisburg is the broke-ass capital of Pennsylvania.

Fixed it for ya.

oldman's picture


A plus+ for you, my man.

A 'very long time' in the Roman Senate and a 'very long time' in the:

 u. s. congress

I am invested 'accordingly'           om

zorba THE GREEK's picture

I know Mr Paul is a congressman, must be the rum that made that mistake.'s picture

When Ron transforms from a congressman to a senator to a pink elephant you'll know to put the glass down.

Temporalist's picture

What is this "was" stuff and the 'he's gone" shit?  He's not dead and he's still in congress!  For fucks sake don't fire the man and bury him before his time!

TeamDepends's picture

Was it over when the Germans bombed Pearl Harbor?'s picture

If you play Aimee Allen backwards it says "Paul isn't dead, man."

Assetman's picture

Oh... there will be a 'grand bargain' regarding the Fiscal Cliff.

But the 'bargain' will involve more spending on nowhere close to adequate revenue collections... and yet another breach of the Debt Ceiling.

Bread and Circuses, my friends.  That's exactly what we'll get... and that's probably exactly what we collectively deserve.

Print away, Professor Bernanke!




TeamDepends's picture

Nothing's over until we decide it is!!!