Rep. Ron Paul on House Republicans' Revolt Over Bailout Plan

This is a rush transcript from "Your World With Neil Cavuto," September 25, 2008. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: Well, stocks up big maybe because Wall Street thinks something big might actually come out of this. Already, some lawmakers are saying that a deal is all but done on what could be a $700 billion bailout. But no one knows.

We are all over it with former presidential candidate Ron Paul, who wants no part of it, Congresswoman Maxine Waters, who says that John McCain should keep his nose out of it, and Karl Rove on the political fallout from it, Rove in a moment, Ron Paul now.

Congressman, what do you think about what they are talking about in there, which is to get this deal back on?

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REP. RON PAUL, R-TEXAS: You know, it is a matter of buying more votes. I know they are under the gun. And the people don't want it. So, they're going to have a lot of explaining to do if they vote for this.

And, you know, I have been listening to the news and watching the markets. And everybody has been optimistic that a deal will be struck. But I just came back from the floor, and my optimism — or at least my sentiment that it was going to be passed has changed a bit.

There's still a lot of people over there, they say, how are you going to explain your vote at home? We don't know how. And there's politics involved. When you get 99 percent of the people in your district against it, it is pretty hard for a politician to go against their district.

CAVUTO: All right.

But, nevertheless, the feeling seems to be that they're going to go back to their respective districts and say, look what we got for you.

This is earlier today, Congressman, when Senator McCain arrived. We're also going to show when Senator Obama arrived. This is Senator Obama. This is about 15 minutes or so ago.

And that, if they can tell the folks who voted for him that, look, I put in provisions for you, will that sell?

PAUL: Right.

Oh, probably to a degree. And, of course, to me, that is exactly the wrong thing. That just means the bill is worse. My problem with this place is, they are spending money they don't have, so — and they are trying to bail out a system where we have overspent and over-inflated.

Now, what do they do when they run into trouble? Well, we will spend even more now. So, they are buying votes by coming out — you know, we have welfare for the rich, so they have to throw in some welfare for the poor, and do some other things in there.

Who knows what will come of this? But, rest assured, we won't have a whole lot of time to study it. It will probably pop up about an hour before the vote. But they are up to a lot of mischief. The American people and the taxpayer will not be protected by making the bill worse, by making a bigger appropriation.

CAVUTO: All right, talking to Congressman Ron Paul, the former presidential candidate.

You are looking at — this is the front of the West Wing in the White House. You just walk down that hallway at that door, and you are in the Oval Office, and not too far from there, the Cabinet Room, where we are told the presidential candidates are meeting at this hour with the president of the United States and the congressional leaders to hammer out an accord, or at least get on message that an accord is advisable.

And that's where you differ, Congressman. You're saying this idea that you have to have an accord or a rescue, you argue with the need for a rescue in the first place, or at least the government doing the rescue, right?

PAUL: Well, oh, right, because, if you understand the financial system and the monetary policy and the cycle, the business cycle, we know that the recession or depression is locked in place. I mean, there is no doubt about that.

The only question is, is it going to be short and swift, painful, and get it over with, and go back to work, or is it going to be delayed and lasting a long time, and last like a depression? Right now, we are working real hard down here to make it more like a depression, rather than a real bad one-year recession.

CAVUTO: Well, you know, Congressman, some of the things you predicted would happen, wouldn't you know, have happened. There are add-ons, not necessarily to this package, but Nancy Pelosi, who is also in this meeting, has recommended a separate stimulus bill for homeowners.

We had, yesterday, a separate $25 billion measure for the auto companies. So, the tin cups are out, aren't they?

PAUL: Well, no doubt. And that's where the problem is.

At the same time there will be people begging and pleading and demanding we vote for the rescue, yesterday, they were making the problem worse because they were voting for all the spending that they can't account for, and we have no business spending this money. It is not a few billion dollars here or there.

I mean, we had a continuing resolution yesterday. The exact number, nobody — I don't even know what the number will be.

CAVUTO: Right.

PAUL: But trillions of dollars they just keep spending, that is where the financial problems come from. And we're not addressing that one bit.

CAVUTO: All right.

Now, what do you make of the little political theater here, Congressman, that had it — you know, John McCain came up to suspend his campaign, get cracking on a deal. All of a sudden, the Democrats, lo and behold, say they have come up with a deal.

Are they trying to take his thunder away, or, ironically, just from a political position, they have added to it?

PAUL: Well, it — that is hard to say.

I think, ultimately, though, there will be no difference between the Republican and the Democratic leadership. Nancy Pelosi and George Bush are buddies right now, working on the bailout. And I wouldn't be surprised if there will not be a sharp distinction between McCain and Obama, because they belong to the same special interest groups.

And that is why you won't get any real debate over the Federal Reserve system or the foreign policy or monetary policy. That will all continue. And that is why so many people in this country have come to the conclusion that there's not a dime's worth of difference between the two parties.

And I think you will see that, once this bill is passed, how the groups got together.

CAVUTO: Congressman, it's always a pleasure chatting with you. Thank you very much.

PAUL: Thank you.

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