There is no way for the people to vote themselves out of the Greek debt burden, according to Ron Paul. So does Sunday’s strong “no” vote in Greece mean that the Keynesian crisis will continue?

In today’s Liberty Report, Paul discussed how 61 percent of the people in Greece voted yesterday to drop the euro, to not follow the International Monetary Fund and to get good loans. The reaction? “The markets fizzled and the market is still down, but it’s not in a panic state,” Paul said.

Daniel McAdams, co-host of the Liberty Report, said the vote reflects “the real sense of anger among Greeks, probably shared by a lot of other Europeans of the European bureaucracy.”

This problem of debt spending and bad loans is going to happen for a long time to come because of Keynesian economics, Paul said. Those in central economic planning, not only on the local level but in the European Union and the IMF, are making mistakes. “It’s like building skyscrapers with a yardstick that changes every day,” Paul said. “You have to give up on these basic principles that debt is good, debt is money.”

Philosophically, operating under Keynesian principles, governments have to come to rescue when these companies continue to accumulate debt without an corrections, Paul said. Now the Greeks are dealing with what to do with the debt. Liquidation and bankruptcy are likely the only solutions.

Watch the full episode above and check out more episodes of the Ron Paul Liberty Report here at Truth In Media.

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