Ron Paul Warns of Terror Attack and Collapse of U.S. Economy


Our old friend Ron Paul is still trying to roll his rock up the hill. A report from Paul Joseph Watson:

“Presidential candidate Ron Paul says the U.S. is in ‘great danger’ of a staged terror attack or a Gulf of Tonkin style provocation while also warning that a major collapse of the American economy is on the horizon and could be precipitated by the bombing of Iran and the closure of the Persian Gulf.

“Speaking to The Alex Jones Show, the Texas Congressman was asked his opinion on Cindy Sheehan’s recent comments that the U.S. is in danger of a staged terror attack or a Gulf of Tonkin style provocation that will validate the Neo-Con agenda…

“‘I think we’re in great danger of it,’ responded the Congressman, ‘We’re in danger in many ways, the attack on our civil liberties here at home, the foreign policy that’s in shambles and our obligations overseas and commitment which endangers our troops and our national defense.’ ‘Every day we’re in worse shape and right now there’s an orchestrated effort to blame the Iranians for everything that’s gone wrong in Iraq and we’re quite concerned that the attack will be on Iran and that will jeopardize so many more of our troops, so I would say that we’re in much greater danger than we even were four or five years ago,’ asserted Paul.

“The presidential candidate expressed his despair that the situation in Iraq will not change until there is a total collapse of the American economy.

“‘There’s no way we can afford what we’re doing, whether it’s domestic spending or the international spending and very few people talk about the real cost of this economically speaking…this is unsustainable and it will be a threat to our dollar,’ said Paul, adding that the onset of the meltdown could be sparked by the bombing of Iran and the closure of the Persian Gulf.

“The Congressman added that the collapse was in its early stages with the major indication being a reduction in the living standard of middle class Americans but that ‘one single major world event’ could change things overnight and precipitate a major downturn.

“Paul said that national and world events, especially the degrading situation in Iraq, were attracting support for his presidential campaign due to his resolute position on embracing a non-interventionist foreign policy.

“The Congressman concluded by surmising that record lows in approval ratings for Bush, Cheney and Congress showed that, ‘The American people are alive and well and disgusted, yet they haven’t had good alternatives…it’s justifiable, they are looking for true answers and options and quite frankly I think that’s probably one of the reasons why our campaign is growing by leaps and bounds right now.'”

Bill Bonner
The Daily Reckoning Australia

Bill Bonner

Bill Bonner

Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
Bill Bonner

Latest posts by Bill Bonner (see all)



  1. Just a point of clarification: Ron Paul did *not* say that the U.S. is in great danger of a “staged terror attack.” The insinuation was a consequence of a loaded AJ question, and not something Ron Paul said himself. If you re-read the transcript, it will be obvious to you (as it should be to all readers of the transcript, and as it was to me when I first heard this).

    Just making sure the Congressman gets in trouble for what he actually says, and not for what people believe he said when he didn’t say them.

  2. This article is repeating a falsehood. Ron Paul did not warn of a staged terror attack. He was quite specific that a gulf of Tonkin event could be used as a justification for an attack on Iran. Duh.

  3. Ron Paul did not say, as Paul Joseph Watson implies through clever re-alignment of disparate quotes, that the U.S. Government is going to stage anything any time soon.

    I would defend Dr. Paul myself from such allegations, but he is far more intelligent and able than I am.

    If you doubt the legitimacy of this article, feel free to watch the actual interview, and decide for yourself:

    Dr. Paul advocates a sensible foreign policy, but he is not a conspiracy theorist.

    Walker Pfost
    July 18, 2007
  4. Misinformation. Paul simply did not say, and does not believe, that the U.S. government would stage an attack on itself or on Americans. Listen to the interview for yourself and you can see that the report is a lie.

  5. It is an embarrassing display of ignorance on the part of certain reporters to associate the Gulf of Tonkin incident with a staged domestic terror attack.

    Anyone with any grasp of history (Ron Paul certainly has such a grasp)would know the difference and this is yet another feeble attempt to distort and marginalize his views.

  6. Note to self… don’t waste your time with Bill Bonner articles. I read about Ron Paul’s alleged comments yesterday. Dr. Paul DID NOT SAY there would be a “staged” terror attack. He didn’t even imply that.

  7. “We should remember that Iran, like Iraq, is a third-world nation without a significant military. Nothing in history hints that she is likely to invade a neighboring country, let alone do anything to America or Israel. I am concerned, however, that a contrived Gulf of Tonkin- type incident may occur to gain popular support for an attack on Iran.

    Even if such an attack is carried out by Israel over U.S. objections, we will be politically and morally culpable since we provided the weapons and dollars to make it possible.
    ” ~ Ron Paul U.S. House January 11, 2007

    Full Speech

  8. Quoted from the Alex Jones site.

    “Listen to the MP3:

    This is the question that Alex Jones asked the Congressman.

    “Congressman, just out of the gates, Cindy Sheehan on my show yesterday went further than anybody’s ever gone, she said ‘distinct chance of staged terror attack’ or the government allowing that to happen, Bush is saying he doesn’t care what the people want, the war will continue, they’ve set up the Military Commissions Act, they’ve set up the John Warner Defense Authorization Act, he’s signed PDD 51 making himself literally dictator, he gave himself that power – how much danger are we in now with Homeland Security head feeling in his gut we’re about to be hit, Republican memos saying they need terror attacks, they need Al-Qaeda to hit us to be able to continue the war, top military strategists saying it – how much danger are we in of some new Gulf of Tonkin provocation ?”

    “Well, I think we’re in great danger of it,” responded Ron Paul.

    The Congressman agrees with the question, that the U.S. is in danger of a staged “Gulf of Tonkin provocation”, as is cited in the question. How anyone can infer anything different from this exchange is puzzling.”

    W. Petrovic
    July 18, 2007

    So . . . this was a staged terror attack?


  10. The National Security Archive
    The George Washington University

    Essay: 40th Anniversary of the Gulf of Tonkin Incident

    Mark Richards
    July 18, 2007
  11. Pat Buchanan wrote something similar on his site. Check it out.

  12. Well I’ll forgive the article because I’ve previously read positive Paul stories from the site. However Dr Paul has said he thinks 9/11 was carried out by 19 hijackers with boxcutters. He has even stated that Timothy McVeigh (Oklahoma bombing) was a terrorist much to the chagrin of the AJ types.

    joshua bruce
    July 18, 2007
  13. The Gulf of Tonkin WAS a staged attack so was 9/11. The US IS in danger of it again just like they were the victims of it WW2 and WW1. The US gov knew that pearl harbor was coming and they knew the the Lucitania would be sunk. WAKE UP people.

    Well Well Well
    July 19, 2007
  14. Perhaps an old carrier being sunk or fired at in the gulf is what will happen?
    Rumor has it that two of the carriers there are due to be scrapped in five years, so they are expendable for this sort of thing.
    Whether they call that a terror plot or not doesn’t matter really.
    Who really trusts the US/Israel axis anyway??

  15. Actually it was Homeland Security Chief Michael Chertoff who said he feels another attack coming on even though he has no proof of it.

    So if he can feel it so can Ron. The difference is, Ron’s statement is innocent, Chertoff’s may NOT be!

  16. Yeah, Chertoff said he had a “gut feeling” that the US would suffer a terror attack this summer. I say we bring his “gut” in for questioning, and find out what it knows.

  17. I think that it is disgraceful for the news to continue to utilize these sensationalist tactics to draw readers. Stories like this do nothing to inform the electorate, but instead serve only to mislead. I would hope that if the news services cannot be trusted to educate, that Americans will take it upon themselves to find the truth wherever it may be.


    We know the media is lying, they know that we know.
    We should just switch off whilst re-evaluating the words, “no news is good news”.
    Ignore them, or listen, but with an added pinch of logic,

    “You only attack because you are under fire”.
    The media attacking RON only increases the attention given to him.
    Most people know who RON PAUL is and realise where he is at.
    He isn’t attacking or discrediting anybody; he is only telling the truth, which is all too lacking in our RULERS.
    Most important of all, people that don’t know him want to know him.
    People want to know and understand why they are attacking him,
    “Who is this RON PAUL guy anyway?
    Thus adding, more power to the elbow.

    In the Ron Paul camp, things are running too smoothly, too safely, too “un-organised” and too natural for their liking.
    RON knows exactly where to hit, which evidently is “peacefully” wounding them.
    That is all too scary for them; they have to look for solutions.
    He’s rocking the boat, and desperate, premeditated moves will be a sure sign that their ship is sinking.

    It’s quite possible, real thinkers within “those on high” could be behind or will be getting behind the whole Ron Paul success process, fearing the sudden determination of the people.
    I repeat the worn-out words “rats leaving a sinking ship”, and add, “Self-desertion”, it doesn’t matter how you look at it, they are all synonyms of “turn coat” and/or “coward”.
    They would very much prefer to be a free rat than a trapped rat.
    “FREEDOM WORKS” and I am sure that some of them would be delighted to jump on the band wagon.

    People are so tired of the whole thing; they just want it to stop. We have been listening far too long to the cracked record “we will be better off”, and waking up to the fact that, “we won’t be”.
    Even feeling embarrassed, of the fact that we nearly believed every word.
    We’ve got to jog the gramophone or change the needle once in a while, “to get it back on track.
    Of course the best thing to do is to change the record.

    If they get their way they will remove the word “freedom” from the dictionary.
    Once the word freedom ceases to exist then freedom ceases to exist.
    The word that reminds us all of the real value of life, will be erased.
    God help us.


    July 31, 2007
  19. I don’t believe Ron would have said anything like that.
    His, all too evident power of reason would not allow him to.
    False words written by possibly envious middle and upper class “poeple” or, or, or, or…….
    They might be doing well today, but what of tomorrow?
    I am sure there are some critics that are even doubting their own words.
    “Those that cower and grovel in the shadow of his correctness, shall be first to see him recieve his prize”.


    July 31, 2007
  20. Joshua Bruce, 19 highjackers with boxcutters is the official story.
    He is only repeating what the government have told all of us, He is too wise to bring personal feelings into play.
    The obvious should have no need to be discussed, 80% of us already know whats what,and that is enough and thats that.
    We can work on the others after the transition.


    July 31, 2007
  21. World dominance means exactly what it says, in this order USA,CANADA AND MEXICO,MID-EAST,EUROPE,ASIA etc. etc.
    With Austrailia and New Zealand being picked off in the final throes.
    Slavery is in the roots of every country.
    “You’ll have “HAD YA CHIPS” is the only way I can sum it all up.

    July 31, 2007
  22. I just listened to the Youtube clip. It sounded to me like Ron Paul thinks that the US might contrive an incident in Iran (like Tonkin) in order to attack Iran.
    I’ve read elsewhere that Paul believes the Muslims hate us because we’ve been attacking them over there for 10 years. The thought of having someone in charge of the US who is unaware that the Islamic Jihad against the West is a continuation of a 700 year old war to dominate the world, who seems unaware of the House of War/House of Islamist mindset is a real concern to me.
    How could a politician think the Islamists have only been mad at us for 10 years?

  23. Glen,
    Of course you are right, what Ron said is more of a guess-statement pertaining to the more or less elapsed time from the “Dessert Storm” fiasco.
    He knows exactly how long their war has been going on.
    Certainly it has been going on forever but only in the last 10 or so years has it been more in the lime-light.
    I would express it equally.
    We must not lose the perspective of the word “world”, it can be a human perception of ones surroundings an example being that “my house is MY world”.
    Land, sea, air, island, country and thought can all be substituted with the word “world”.
    I’m unable to find any evidence at the moment that indicates a PHYSICAL swing or attempt at “world domination” by them,
    Given today’s circumstances, it is highly improbable, it would be utter suicide, a lost cause and they are not stupid.
    If the evidence be weighed we’d find that they are only defending themselves, as Ron quite rightly stated.
    All things said, there is no solid evidence that we are under attack from them on the pretext of “world dominance”, the only evidence we have got is the word of a failing, “clutching at straws” BOSS that evidently is intent on kicking ass and achieving that very same “world dominance” but for completely different reasons.
    If “world dominance” is the Islamic goal, so be it! “We” have that very same goal.
    And may the best man win.
    One thing we have to be very clear about is that their people would be a lot freer than ours would ever be, because their fight is for freedom and not for power.
    We are now at a stage that we the (humble) people are seen (shamefully) as being no better, if not worse than they are.
    We have to be quite clear about “who is waging war; on who; and why”? Then think again.
    We are all in the same boat.
    As for another incident happening; the writing is on the wall.
    Every day they emphasise it more and more, insinuating it as being imminent.
    I am very preoccupied about what (We already suspect)could result from such an incident.
    If we are not careful it could be our (the peoples) last chance to reverse that outcome.
    The BOSS is just not listening and is determined to step on Iran.
    Of course the logical thing to do is pull-out now, leave them alone, close our borders, and take it from there.
    As for the statement that “they have been mad at “us” for years” is questionable.

    Being human, I have to sympathise with all other humans, whatever goes on inside their heads,
    Humans are individuals and one should respect that individuality.
    Just because a person thinks or looks different, just because others have different opinions of other people, should not influence me and give me the right to harm them in any way.
    I will allow everything up to the point where they threaten MY world, then, I will lose that respect and regretfully have to defend myself.
    I would definitely prefer to take my own life before I am forced by the “thoughts of others”, to take another life.
    God help us all.


    August 2, 2007
  24. Ron Paul is Americas last hope. We are FINISHED without him.

    “When we retaliate for this horror we have suffered, we must be certain that only the guilty be punished. More killing of innocent civilians will only serve to flame the fires of war and further jeopardize our security.”
    “Demanding domestic security in times of war invites carelessness in preserving civil liberties and the right of privacy. Frequently the people are only too anxious for their freedoms to be sacrificed on the altar of authoritarianism thought to be necessary to remain safe and secure. Nothing would please the terrorists more than if we willingly give up some of our cherished liberties while defending ourselves from their threat.”


    – This may be the only revolution that doesn’t require a Gun.
    – Washington needs a doctor not a politician.
    – Legalize the constitution, vote Ron Paul.

    Think for yourself, question authority!

    You will be responsible for KILLING THE USA by NOT voting for Ron Paul.

    The politicians in washintgTOON are responsible for a suicidal policy, both foreign and domestic, and Ron Paul is the ONLY man willing to try and stop this. RON PAUL!

    Idiot Republicans and Democrats to Ron Paul “This is blasphemy, this is madness!”
    Ron Paul to the Idiots: “This is AMERICAAAA” (and he kicks them down the well)

    Ron Paul.

  25. The Islamist fundamentalists want to rule the world. They believe that everyone is born a Muslim and those who are not raised as Muslims simply haven’t had the opportunity.

    Ron Paul may actually be trying to get America back to what they were before the Republican and Democtrat parties made America what it is today. If he is, then I for one would support him.

    The idea of slavery being in every country is a rather curious statement, because ‘Freedom’ o me means being able to live any where I choose within a country, lawfully acquire wealth without limit, raise a family without coercion
    from any man or group of men, worship God without intimidation, and take part in electing my rulers. What FREE Harry is getting at is a little obtuse. We do reduce our freedoms when we impose restrictions on movement, or lock people up without trial.

    When the terrorists flattened the World Trade Centre on Septemebr 11 they were declaring war on the West.

    I suspect that they wanted us to do what we have done. One more thing they may want is for us to expel all Muslims from our countries so that a war between Christendom and Islam can take place. I know that sounds way out, but the mindset of these people is one of hate towards Jewish people and towards Christians, as well as towards other Muslims who disagree with them.

    Attacking Iraq was an error in judgement, to attack Iran would be as bad as Hitler attacking Russia in WW2. You don’t open a second front until you have dealt with the current conflict, otherwise you dilute the force you are able to bear upon the task at hand.

    In the war with Islam the battle really should be about hearts and minds, not physical harm, because for each person killed there is a family who will now seek revenge upon the “infidel.”

    I do not believe that the USA has learned anything since Vietnam as they have made the same errors as they made then.

    Ron Paul won’t win the election even as the nominee for the Republican Party, but I agree with Bill Bonner that we aught to support him where we can.

    Good luck Ron.


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