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MEGYN KELLY: Joining me now

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is someone who has thoughts about this and[br]warned about it, and that’s Texas Congressman

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Ron Paul.

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Congressman, thanks so much for being back[br]with us. You’ve had your eye on Greece for

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a while now. This probably comes as no surprise[br]to you.

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RON PAUL: No, not at all. And I think this[br]is just the opening of a much more serious

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crisis than the financial crisis.

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I think what we’re seeing is a shift from[br]the financial crisis, the financial institutions,

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to a currency crisis. Even though the dollar[br]is up sharply today and has been up sharply

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last week, I see this as an attack on the[br]dollar.

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Because in terms of gold, the dollar has been[br]rampantly devalued and this means that gold

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is acting as money.

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They’re giving up on the paper currencies[br]and I think this country and the world is

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in for big trouble because this is a currency[br]crisis and it’s much worse that having a

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financial crisis.

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MEGYN KELLY: You know they say that look,[br]what’s happening in Greece is one thing,

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but if this expands to Europe and they’re[br]saying Portugal could be next,

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the German chancellor says she’s very worried,[br]and that the European [Union] has to bail

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out Greece because she’s worried about it[br]spreading to Europe, and there are other countries

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that could follow, Spain and others.

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If this becomes a European problem, it very[br]much becomes an American problem as well,

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does it not?

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RON PAUL: There’s no doubt about it. It[br]is a world problem and we’re going to be

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the last one to fall because we have the dollar[br]and people still think that the dollar will

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save everybody.

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The dollar is going to have to bail out California[br]and so many other problems that we have here.

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But that’s going to make the whole world[br]vulnerable. It’s a debt explosion, it has

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occurred for 40 years, we’ve known it has[br]been building, we knew it couldn’t last,

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and we knew it would end first with the financial[br]bubble collapsing, and now we’re in the

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midst of a currency crisis.

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MEGYN KELLY: You know, it’s really scary[br]to see what can happen in a society when the

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overspending comes home to roost.

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You know, when you see the consequences of[br]years and years of overspending.

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Obviously people here are very worried about[br]our debt and our deficit.

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Congressman Paul, could this kind of thing[br]happen here? Could what we’re seeing in

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Greece and in California happen on a nationwide[br]basis here?

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RON PAUL: Absolutely. There’s going to be[br]anger and there’s going to be riots in the

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streets as well.

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But this is all a consequence of the fact[br]that why and how the government spends like

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this.

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It’s because they don’t have sound money.[br]When we run up deficits, we tax, but never

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enough. We can’t tax, it would ruin the[br]economy. Then we borrow, and we get away with

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that for a long time.

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But we rely on the printing presses from the[br]Federal Reserve to create the money, and that’s

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where the problem is.

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This is why we have to look at the Federal[br]Reserve, we have to get an audit of the Federal

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Reserve, we have to look at the monetary system[br]and the dollar system because you can’t

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have fake money.

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This is counterfeit. We’ve been operating[br]like this since 1971.

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No time in the history of the world has the[br]whole world been on fiat money for so long

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building up these financial bubbles, distorting[br]the economies and running up all this debt,

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and it has to be paid for. This is just the[br]beginning.

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MEGYN KELLY: Do you actually think that the[br]Federal Reserve may be secretly bailing out

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Greece anyway, because we can’t audit the[br]Federal Reserve, so we don’t know what it’s

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doing with this money.

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You think they may be funneling money over[br]there right now?

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RON PAUL: Well, they’re capable of doing[br]it, that’s why I demand an audit.

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But we do know that the IMF has offered them[br]a lot of money, and we’re like 25 percent

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of the IMF, and that money has to come from[br]us, it has to come from creating new money.

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But what they do secretly we don’t know.[br]But they’re capable of doing it.

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And believe me, if push comes to shove, they’re[br]going to use the dollar because people are

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still trusting the dollar. We still have the[br]big economy.

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But that just delays the inevitable and it[br]makes the downturn that much worse.

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MEGYN KELLY: How much of this fall on the[br]Dow do you attribute to Greece?

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RON PAUL: Oh, I think a lot. But that’s[br]just the tip of the iceberg. They’re the

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ones who have been the first ones to fall,[br]but then there’s going to be Portugal, there’s

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going to be California, then it’s going[br]to be United States government, and it’s

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going to be all the governments. I mean, they[br]talk about Germany being the powerhouse? You

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think they have balanced budgets and they’re[br]going to be able to bail out Europe? No! Everyone’s

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in this together. So Greece is just the beginning[br]because they were probably worse off and it

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was precipitated.

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But all the countries and so many of our states[br]are that way and many of our corporations,

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individuals, it’s still debt that has to[br]be liquidated.

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MEGYN KELLY: Alright. Well, Congressman Ron[br]Paul, we always appreciate hearing your insights

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on it. Thank you so much for being here.

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RON PAUL: Thank you.