Republican Kentucky Sen. Rand Paul predicted dire consequences for the economy and “catastrophe” for the stock market Wednesday if Democrats win all three branches of government and uncontrolled borrowing continues.
Paul’s comments on Fox News’ “Cavuto Live” came as negotiations between Republicans and Democrats on a fourth stimulus package continue to stall, but Senate Republicans’ proposal of an additional $1 trillion in spending – once considered an enormous sum – was dubbed the “skinny” version.
“Well, there is no money is the most important thing,” Paul told anchor Neil Cavuto. “There is no rainy day fund. There is no savings account. You can’t go over to the Federal Reserve and open a big safe door, find a bunch of money and pass it out. The money will be borrowed or the money will be printed, and both of them have ramifications.”
“If we do another trillion, we’ll be at about $5 trillion for one year,” Paul said. “We have never, ever in the history of the United States borrowed so much so rapidly, and I fear the consequences.”
“I don’t know how quickly the consequences come, but I fear that the stock market is going to see that and the stock market is also going to worry about having, you know, all three branches of government in Democrat hands,” he continued. “I foresee a catastrophe for the market if the Democrats win the election and we keep borrowing money, and then they will be back in December saying, oh, we need to trillion more.” (RELATED: Rand Paul: ‘Let’s Open The Economy, Open The Schools’)
Paul argued that giving people money makes it “less painful to be in a recession,” thus prolonging it. Since this one is “created by the government,” the Kentucky senator said the answer is to put pressure on governors who are “causing the unemployment.”