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it is no secret that former texas congressman and presidential candidate ron paul has had some issues with the federal reserve. not surprisingly, paul has his own choice for his next chair of the fed. it isn't janet yellen. his pick is -- well, we'll let him tell you. former congressman ron paul joins us. good to you have back. thank you. nice to be with you. all these names out there, kohn, ferguson, geithner, summers, who would you take? none of the above because i don't think it makes any difference. they all endorse the principle of manipulating interest rate and believing that they can decide how much money supply there should be and when to raise rates and when to lower it. you can't expect anything new or different than that. one individual might manage things slightly differently but overall it will be the same thing. it's still the monetary system we have to deal with, not the particular manager that's going to be involved. right. obviously you wrote end the fed a few years ago, the answer not too terribly surprising coming from you. but working in political contexts like we have, congressman, who do you think is the most likely nominee right now? well, it looks like it's yellen. i mean, but it's still early. they do a lot of manipulating, pushing back and forth. last week it looked like it was summers and all of a sudden it shifts. who know what is will happen the next month or two. right now i think the consensus is she would be nominated. your son said his pick would be hayek or friedman, which is going to be a tough get. well, neither one of them like the fed. freeman wanted to turn it over to a computer, which that's not exactly my position. but it would probably be better than a few individuals and one in particular behind the scenes in secret pretending they no what interest rates should be. that's to me the most amazing thing that people accept this. the most important bit of piece of information for investors and for savers is interest rates and yet we give up on that and decide it should be cold by one person. it's positively amazing that the economy toerates it. the unemployment rate has come down. that's one reason we've seen the holdings of gold take a bit hit, holdings your portfolio has. has your portfolio take a hit? if you say it took a hit, well, at $35 an ounce and it doesn't seem so bad, especially if you do it for insurance and long term. we do know that governments will continue to spend, the deficit problem hasn't been solved. i'll challenge you on some of the employment statistics. they're not quite as rosie as some people believe. i mean, we're in big trouble and i challenge people on the inflation factor, too. this article today in the times says a woman is working two jobs and lives in a shelter. she can't even get a house because her cost of living is too high. a lot of inflation, a lot of unemployment. to say gold went down in the last year, that doesn't tell you a whole lot. you got to look at the whole long term and basics. the markets deal with minute to minute and it can change overnight or within minutes it can change. who know what is the next one will be. i think most people who study free market economics knows that this is very, very fragile, the at statistics don't bare out that we have no inflation. so i think people should be more cautious than overly confident. congressman, in the middle of all that fragility, as you describe it, in two weeks every federal agency from the pentagon to the fbi is due to shut down, unless there is a deal by september 30 on the federal budget and then we have the debt ceiling argument. speak are boehner thought he could get that through without much fuss until yesterday when 40 conservatives within your party rebuild at a strategy meeting and now potentially we have a big problem. if you were speaker boehner, what would you do? i would insist that people cut back. the choice is not so much inflate and spend and borrow and run up the deficits and continue on this path that we are because the alternative is detroit. you know, there's nothing that says that many, many cities, towns and states can't face a detroit. it's hard to talk somebody out of their addiction and say wean yourself off. it's not going to happen. i would always make the case that continuing the addiction of spending and deficits, printing money, manipulating the economy is much, much worse than taking your medicine, which would mean that you got to quit and you just can't wean it off. so i would say you ought to face the consequences. but that won't happen unless people decide what kind of government they want. if they want government where we have a military that police the world and we have an endless welfare state, you can't do that. that's why nobody should expect anything to come of this other than stalemate. that's what's going to happen. i think people understand that, congressman, though you know as well as anyone that this round of negotiations seems to be tied at least from the club for growth and ted cruz to the defunding of obama care. would you be willing, if you were still in office, to follow them down that road? yes, i would think that you have to do what is necessary. and if you continue the process, you know, it just makes things worse. it delays the inevitable. so, yes, it is dangerous. i mean, it's going to be difficult. but if we don't do it, the consequences are so, so much greater. and besides, they're not going to do that. the most that happened last time is they got rid of unessential workers for a couple days and nobody noticed it, you know. so they don't have to do this. they could do essential services, the nonessential people could go home and nobody would notice. and it's just scare tactics. it's just like foreign policy. scare everybody into it. up got to vote for the war. that's what they do in economics like when we had the bust five years ago, terrorize the people that you have to spend and do this and dig a bigger hole for ourselves. we have to quit digging the hole for ourselves because we'll get buried in it very soon. congressman, thanks for your