On the eve of the South Carolina debate, Ron Paul was indirectly accused of being a racist due to comments that were written by a ghostwriter in a newsletter that had his name on it. Wolf Blitzer interviewed Ron in the Situation Room on CNN and allowed him to explain himself:
Here is the summary of the situation involving the racist newsletters, copied and pasted from Wikipedia.
"'Ron Paul Report' newsletter controversy:
Paul's newsletters, which date back to 1978 and has been variously titled "Ron Paul's Freedom Report", "Ron Paul Political Report", "The Ron Paul Survival Report", and "The Ron Paul Investment Letter", first became an issue in his 1996 run for Congress against Charles Morris. Morris ran numerous attack ads about Paul's newsletters, which included derogatory comments concerning race and other politicians. Alluding to a 1992 study finding that "of black men in Washington ... about 85 percent are arrested at some point in their lives", the newsletter proposed assuming that "95% of the black males in Washington DC are semi-criminal or entirely criminal", and stated that "the criminals who terrorize our cities ... largely are" young black males, who commit crimes "all out of proportion to their numbers".
In 2001, Paul took "moral responsibility" for the comments printed in his newsletter under his name, telling Texas Monthly magazine that the comments were written by an unnamed ghostwriter and did not represent his views. He said newsletter remarks referring to U.S. Representative Barbara Jordan (calling her a "fraud" and a "half-educated victimologist") were "the saddest thing, because Barbara and I served together and actually she was a delightful lady." The magazine defended Paul's decision to protect the writer's confidence in 1996, concluding, "In four terms as a U.S. congressman and one presidential race, Paul had never uttered anything remotely like this." In 2007, with the quotes resurfacing, New York Times Magazine writer Christopher Caldwell concurred that Paul denied the allegations "quite believably, since the style diverges widely from his own," but added that Paul's "response to the accusations was not transparent."
In January 2008, the contents of Paul's newsletters made news again when James Kirchick of The New Republic published a story detailing the contents of various Paul newsletters. Kirchick said that the writings showed "an obsession with conspiracies, sympathy for the right-wing militia movement, and deeply held bigotry". A 1990 issue of the Ron Paul Political Report stated that "Homosexuals, not to speak of the rest of society, were far better off when social pressure forced them to hide their activities". After the 1992 Los Angeles riots, the newsletter referred to African-American rioters as "barbarians" and suggested that the riots only stopped when it came time for "blacks to pick up their welfare checks". Other issues gave tactical advice to right-wing militia groups and advanced various conspiracy theories. While the newsletters were published under Paul's name, he disavowed the writings in a response to the New Republic article. Paul said that the quotations do not represent his beliefs, and that "I have never uttered such words and denounce such small-minded thoughts." He did not indicate whether he knew who wrote the articles, but again noted that he accepts "moral responsibility" for not paying closer attention to writings published under his name."
Here is an article Ron Paul wrote about Racism that sheds light on his stances.
Although all of this smearing upsets me, isn't it amazing that the worst thing they can come up against Ron Paul in 20+ years of public life is racist comments in newsletters written by a ghostwriter under his name? I have followed Ron Paul very closely since June of 2007, and everything I've seen and read from him suggests there isn't a racist bone in his body. Feel free to disagree, but I'd hate for people to not research the issue more at depth to see for themselves. The more you learn about Ron Paul, the more you will understand why the establishment fears him. He is the only real change candidate in this race, and the only change he wants for this country is for us to return to following the Constitution!
I truly believe that we have one of the greatest presidential candidates in the history of this country running for office, and the mainstream media and their corporate bosses are doing everything they can to keep the spotlight off of him. It will be ironic that if things are not to be, 20 years from now, the next generation will be watching videos of Ron Paul speeches in the '70s, '80s, '90s, and 00's where he predicted virtually everything that ended up happening economically, and they will likely be asking us this question: "Wait a minute, America passed on the opportunity to vote Ron Paul as their President, not only once, but twice?!?".