Rand Paul: “America will not default on her debt today. In fact, there was never any doubt that America would pay her bills. But…”

“America will not default on her debt today. In fact, there was never any doubt that America would pay her bills. But mark my words, America will default. America will default, not by not paying its bills, not by not raising the debt ceiling, but we will default in a more insidious way. America will default by increasingly paying our bills with money that is worth less and less each year. A nation pays for its debt in three ways. We can either tax people, we can borrow the money, or we can simply print the money. They all have repercussions. We are approaching our borrowing limit as a nation. We now owe China over $1 trillion. We owe Japan nearly $1 trillion. We even owe Mexico. As we reach our borrowing limit, interest rates will rise and the prices in the stores will rise. You are already seeing this in your grocery stores. You are already seeing this in your gas prices. They are not rising de novo, out of nothing. Your prices are rising because the value of your dollar is falling. The value of your dollar is falling because they are printing up money to pay for this exorbitant debt. In 2008 we went through a banking crisis and we doubled the monetary supply in 4 months. We bought things. The Federal Reserve bought toxic assets. They bought bad car loans and bad home loans. Where once upon a time your dollar was backed by gold, your dollar is now backed by toxic assets--not a very comforting thought.…”