FOX News Channel "Your World"
MR. CAVUTO: We've been telling you about this all day. Stocks soaring more than 416 points, the biggest single-day advance we've seen in more than five years. Let's just say that investors have 200 billion reasons to celebrate today. That is how much money the Fed is freeing up for cash-strapped banks so they can lend. But can you keep throwing money at the problem? We thought we'd ask a true fiscal conservative, presidential candidate Ron Paul.
Congressman, the markets were impressed with this today, you were not. Why not?
REP. PAUL: No, I wouldn't be impressed. The answer to your question is sure, they can keep throwing money at it and new credit, but it's not going to solve the problem. Because the real problem started when they pumped in too much credit to begin with and caused all the malinvestment and over capacity and excessive debt. So you can't solve that problem by just further expanding credit, but the markets liked it today. But I think it's a sign of desperation really. Because this time they had to get the other central banks of the world to collude and go along with it, which means all the countries are willing to debase their currencies, you know, at the same time hoping that one currency won't rule over the other ones.
But it will not help the consumer, it will not help the economy, it will be inflationary. Prices will go up for all the countries of the world. And of course, that's what we're facing anyway. So this is not an answer. This is just maybe prolonging the agony for a while longer.
MR. CAVUTO: All right. So spell out the agony.
REP. PAUL: Well, the agony is is that old saying about pushing on a string. People eventually will not go back to work, and the consumers aren't going to get confidence because Wall Street feels better today, and that they're creating new money. I mean, even though the dollar went up a little bit today, this should be depressing the dollar. To create $200 billion out of thin air, this should devalue the dollar. And I didn't see, if this was really deflationary or really stopping inflation, oil prices wouldn't be $109 a barrel. So this is not a solution. When the dust settles, I think we'll still be seeing out bear market. It's been going on -- actually, in real value, it's been going on from the year 2000. So that process is going to continue.
MR. CAVUTO: Sir, are you still running for president?
REP. PAUL: Sure, sure.
MR. CAVUTO: Do you have any intention of dropping out?
REP. PAUL: Not in the conventional sense. I continue to run, to get as many votes and as many delegates. And when the enthusiasm dries up, yeah, I probably won't run any longer. But we still get large crowds on campuses and a lot of enthusiasm. And you know, the conservatives believe they have a right to vote for a conservative. I mean, why should the debate end so soon? I mean, it's months and months ahead of the convention. I would think it's only fair to allow conservatives to have a choice.
MR. CAVUTO: Now, the choice, apparently, has been made in the Republican Party unless something dramatically reverses fortunes. John McCain has picked up more than enough delegates to scoop it up. So why stay at it?
REP. PAUL: Well, I think it's important to try to change the direction of the country and certainly try to get the Republican Party back to its roots. You know, we used to be a conservative party. We weren't the party that championed McCain-Feingold, No Child Left Behind and entitlements like prescription drug programs. That's what we have come to. And we're the party of deficits. I mean, why should we give up so soon?
The young people do not want me to give up. They think this is worth the fight. They're encouraging me, and our numbers look good when it comes to how well the campaign's doing, how many supporters we have and how many donations we get. So I would say there's enough people and determination to try to reverse the trend of this country to get back the sanity, back to fiscal conservatism and actually a sound currency. I've been arguing that case for a long time. And we wouldn't be facing this financial crisis that the Fed has panicked over if we had sound money instead of depending on FIAT money created out of thin air and thinking that a central economic planning could succeed.
MR. CAVUTO: Would you then entertain running as a third-party candidate?
REP. PAUL: I haven't entertained that at all, no. I don't think that would help the situation. I'm not inclined to do that.
MR. CAVUTO: Well, there are a lot of disenfranchised conservatives, Congressman, who feel pretty much as you do and a lot of your supporters do, angry enough to claim maybe an independent run is the only answer. You're saying unequivocally no to that?
REP. PAUL: Well, as close as I can get to it. I have no plans to do that. And there will be other people that will try to capture the spirit outside the party. Right now I'm still working within the Republican Party, and there's a convention that we're coming up to. So we'll see what happens.
MR. CAVUTO: Okay, Congressman, always a pleasure. Thank you, sir.
REP. PAUL: Thank you.