Representative Ron Paul (R-Texas) has predicted that the United States will endure a bankruptcy.
“I am very hopeful and positive in the long run, but I think we are going to go through a bankruptcy first,” the Congressman told Fox News. “Everything we have done so far has just spent more and run up the deficit.”
Lawmakers are currently attempting to reach a compromise on the debt ceiling. Republicans have said that if the debt ceiling is to be raised then equal cuts to spending must be made. Democrats have insisted that tax hikes be a part of any plan. Paul has warned that the GOP should be cautious about making a deal with the Democrats.
“In fact, reports are they may be ready to cave in to Barack Obama’s demands for a trillion dollars in tax increases in exchange for mostly phony spending and tax cuts in order to raise the debt ceiling,” the Presidential hopeful said in a statement. “In Washington, if you hear about a so-called deal, you can be sure the taxes will come, but the cuts never will. Republicans cannot take the bait and get fooled again.”