CNN "The Situation Room" - Transcript

Interview

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BLITZER: Getting a clarification our sister publication "Time" magazine and Joe Klein who earlier here on CNN said that he had heard that General McChrystal has offered to resign, has already volunteered to resign. The clarification from "Time" magazine, they just tweeted this on Twitter, "Clarification from Joe Klein, General McChrystal has offered to resign. He has not submitted his resignation." In other words, he's offering his resignation but not yet doing the paperwork. We'll watch this. The president meanwhile, you just heard him say in the cabinet room over at the white house that he wants to speak with General McChrystal tomorrow before deciding what happens next. He did say that General McChrystal showed bad judgment in some of the statements he and his advisers made to "Rolling Stone" magazine. Let's talk about this and more with Congressman Ron Paul, Republican of Texas. What do you think, Congressman? Did he show insubordination more than just poor judgment? What do you think? Should General McChrystal step down?

REP. RON PAUL (R), TEXAS: I think insubordination is probably a subjective issue that the president has to decide himself. But no I think the president would be justified, you know, in putting him out. I don't see how he will survive it. Everybody is talking and worried about his survival. I worry a lot but I worry about the survival of our troops over there getting killed and I think the whole problem with McChrystal is the fact that the war is going so badly. There's no signs of victory, no end in sight. The people are dying and money is going out the window. And I think that this is symbolism and we're misdirecting. I'd much more energetic about talking about this if we talked about the failure of the policy and why are men are dying in a war that sees no end to it. That is where our real problem is, and the McChrystal argument is symbolic of it.

BLITZER: Yes. If you read that article in "Rolling Stone" magazine which I did, I don't know if you read it but it is shows a very dire situation right now, almost a quagmire and no victory in sight, about time U.S. troops to get out. I know you have wanted U.S. troops to get out of Afghanistan and Iraq for a long time, but obviously, that has not happened yet in either case. Let's talk a little bit about your colleague from Texas, Congressman Joe Barton, another Republican. He apologized to BP last week and later retracted it, but it caused a big uproar and the Republican leadership really came down on him hard. What is your assessment?

PAUL: Well, I don't know have a strong opinion because I don't know what went on. How can we judge what happened in a private conversation. I am waiting for a release of the discussion to know what really went on. But that bothers me, also, because of maybe picking of the words. What he called a shakedown. Well, what if he had said the president put pressure on BP to do this? Then it would have been politically correct. You'd have to check with the political correct police on how you word things, and if you misword things, you will get into big trouble. So it is a lot of that. But I'm concerned about the whole issue, because I think that this is unprecedented.

BLITZER: But you want BP to pay up for all of the folks losing their livelihoods? That $20 billion escrow account that the white house put pressure on BP to come up with, that was a good idea, right?

PAUL: Well, I'm not sure about the process, but I don't think that the process has, and you can defend that with the rule of law and that is not how you do it, and if this is unprecedented in how they did it.

BLITZER: Unprecedented because the attorney general was there at the meeting to negotiate that.

PAUL: But by what authorities do presidents make deals with big companies? That is not part of the law. That isn't part of our constitution. I am always worried about the big business and big government in bed together. Here's a company that is in bed with big government already so I am already suspect. So they are champions of the cap and trade, and they get our protection, and they have a lot of oil in the Middle East and you know our navy and our troops are in the Middle East you know to protect our oil. So they are in bed with big governments already so this is good PR for the executive branch and good PR for BP, but it is not good PR for the process. BP had already started paying out, you know, claims, and working this through. But to come up with this scheme, I don't think it is proper, but if -- I think that BP should pay $100 billion if necessary but I want them to it right and I don't want this partnership between big business and big government to you know accelerate. BLITZER: Right.

PAUL: I don't like that. I like it to be separate and I like it to follow the rule of law.

BLITZER: Spoken as a true libertarian as you are. I'm not surprised. Let me talk briefly, we only have a little time left, about your son Rand Paul. He's an ophthalmologist. He's an M.D. just like you. Is he ready for the pressure that's being put on him as he runs as the Republican nominee for the U.S. Senate from Kentucky?

PAUL: Well if they were all like you Wolf and reasonably fair I think he's very much ready but when the demigods get lose none of us are ready. They can trap us and trick us. It's a shame that politics is are you ready for the entrapment by the media. I mean that's what it is. It's a game.

BLITZER: But you handled the media very well. I wonder if you think Rand Paul can do what you do.

PAUL: I think he's doing better than I did when I was his age. You know even though he's mature and in his 40s, I came to Congress approximately that age. I don't feel like I could handle things as well as I can now but I think things are tougher now. I think they're meaner and nastier and they're set up more and there's collusions. It's much different than just discussing the issue. I'm fortunate. I think I've gained acceptance enough that interviewers like you and others have treated me rather well and have dealt with me with the issues so I'm pleased with that but I would say that he will learn. I think he does a good job. I think his demeanor is rather good.

BLITZER: It's going to be a fascinating race in Kentucky. We'll watch it but you'll watch it a lot more closely I'm sure. Congressman, thanks very much. I know you're very proud of your son as you should be.

PAUL: Thank you Wolf.

BLITZER: Jack Cafferty is coming up next.

Also, a controversial article could take down the president's main man in Afghanistan. My interview with the executive editor of "Rolling Stone" magazine, that's ahead as well.

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