"They're probably going to ... (but) we shouldn't raise it. We should put pressure on them. If you took away the privilege of the Federal Reserve to buy debt, this thing would all come to an end because if you couldn't print the money to pay for the Treasury bills, interest rates would go up and Congress then would be forced (to cut spending)."
But smart people say we need the Fed to keep the economy going.
"The people who benefit from big government spending love the Fed. ... The Fed is very, very detrimental. You cannot have big, runaway government -- you cannot have these deficits -- if you don't have the Fed."
We libertarians say government is too big, but one thing it is supposed to do is provide for the common defense. Paul criticizes conservatives who support an aggressive foreign policy and says much of what is called "defense" is really offense. "I don't want to cut any defense," he said.
He added: "You could cut (the military budget) in half and even (more) later on because there's nobody likely to attack us. Who's going to invade this country?"
Ever the optimist, Paul says, "We have a tremendous opportunity now because most people realize government's failing ... ."
Yet he's a realist: "I think ... our problems are going to get worse ... before we correct them."