Paul tells Manchester crowd inflation will hit 50 percent
MANCHESTER - Texas congressman Ron Paul on Friday predicted that inflation will hit 50 percent in the next couple of years, thanks to the massive debt the country has accumulated.
Paul, who spoke to admirers and Republican activists at a Manchester house party, said the inflation will act like default.
Social Security checks will still be cut and interest payments will still be made, but the inflated dollars will allow the government to repay borrowed dollars with devalued money, Paul said.
'They cannot pay the debt,' he said. 'I don't think that means you shouldn't try and work things out, but with the size of this debt it never gets paid.'
The national debt is about $14.3 trillion.
Paul spoke to about 150 people at the home of Ovide and Bettie Lamontagne, who are hosting receptions for candidates in the Republican presidential primary.
The Texas physician is the sixth candidate to appear at their Young Street home.
Paul ranked second, with 9 percent of support, in the latest CNN/WMUR New Hampshire Primary Poll, which was conducted in mid-May. He was a distant second to former Massachusetts Gov. Mitt Romney but ahead of popular names such as Rudy Giuliani, Sarah Palin and Newt Gingrich.
In remarks to the crowd, Paul praised the pro-liberty leanings of New Hampshire and joked that his slogan is on New Hampshire license plates.
As a candidate four years ago, Paul was shut out of some Republican primary debates, but he said his credibility has grown since then, in part because of numerous television appearances over the last three years.
He told a reporter that former New Mexico Gov. Gary Johnson should be allowed into Monday's debate, which is sponsored by the New Hampshire Union Leader, CNN and WMUR.
'He should be there. He's been a governor for two terms,' Paul said.
Paul touched on many of his popular topics, but with some softening signs. The Federal Reserve should be abolished - eventually, he said.
He voted against the Republican's Path to Prosperity, but he doesn't attack it because Congressman Paul Ryan has gotten clobbered for it, he said.
And although he's called Dr. No, Paul is really an optimist, he said.
In addressing one question, Paul said the country's soldiers face rules of engagement because they have gotten bogged down doing social work and police duties.
'If you go to war, you fight a war,' Paul said.
John Kroehler, the commander of the Bedford VFW, asked Paul the question. He said he liked Paul's answer, and U.S. troops should no longer be in Afghanistan and Iraq.
'Our obligation,' Kroehler said, 'is to protect the country, not be the world's policeman.'