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Ron Paul: Fiscal cliff is fight over power

Republican Rep. Ron Paul says Congress and the White House pretend they are fighting to reach a deal to avert the fiscal cliff of year-end tax increases and spending cuts, but in fact they are fighting over power.

He explained that even if Congress manages to come up with a solution to avert the “fiscal cliff,” it won’t be worth anything because it’ll probably only deal with tax rates and ignore the problem of runaway government spending.

"We have passed the point of no return where we can actually get our house back in order," Paul told CNBC.

"They pretend they are fighting up there, but they really aren't. They are arguing over power, spin, who looks good, who looks bad; all trying to preserve the system where they can spend what they want, take care of their friends and print money when they need it," he added.

With social safety nets available to rich and poor, there is no impetus for change and "the country loses," but Paul concludes, the markets are starting to say "there is a limit to this."