Sen. Paul warns of 'predictable' financial crisis driven by 'massive deficits' fueling inflation

Sen. Rand Paul, R-Ky., warned of an impending debt crisis that's currently fueling inflation on the Senate floor before passage of a temporary continuing resolution to avoid government shutdown.

“Congress creates the inflation by running massive deficits," Paul said on Senate floor ahead of the CR vote.

He cited the Congressional Budget Office that projected ongoing annual $2 trillion deficits if Congress continues on its current spending path.

“Today’s spending threatens tomorrow’s prosperity," he said.

Paul described the fiscal situation in the U.S. as the "most predictable" financial crisis around the corner.

He called on Congress to authorize 95% of what it spent the prior year as a way to get the deficit under control over time.

Paul said the cause of inflation is not a mystery, explaining that the value of the U.S. dollar declines when the Federal Reserve “prints up the money to buy the debt."

"The root cause is Congress," he said.

The U.S. national debt is climbing toward $35 trillion, according to the latest U.S. Treasury data.

Conservatives have criticized the CR for not reducing deficit spending. Despite this, House Speaker Mike Johnson plans to put it on the floor for a vote on Thursday prior to the snow storm expected to hit the Washington, D.C. region.