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« Big Banks To Pay $8.5 Billion To Settle Foreclosure Fraud | Main | AXE FALLS: Morgan Stanley Slashes 1,600 Jobs »

Paul: 'No One In Washington Has The Balls To Cut Spending'

Ron Paul's Texas Straight Talk  - Dec. 3, 2012.

Forget the cliff, the United States is broke.

Transcript is below.  This is worth reading.


It's the Spending, Stupid!

By Ron Paul

As the year draws to an end, America faces yet another Congressionally-manufactured crisis which will likely end in yet another 11th hour compromise, resulting in more government growth touted as "saving" the economy. While cutting taxes is always a good idea, setting up a ticking time bomb with a sunset provision, as the Bush tax cuts did, is terrible policy. Congress should have just cut taxes. But instead, we have a crisis that is sure not to go to waste. 

The hysteria surrounding the January 1 deadline for the Budget Control Act's spending cuts and expiration of the Bush tax cuts seems all too familiar. Even the language is predictably hysterical: if government reduces planned spending increases by even a tiny amount, the economy will go over a "fiscal cliff." This is nonsense.

This rhetoric is based on the belief that government spending sustains the economy, when in fact the opposite is true. Every dollar the government spends is a dollar taken from consumers, businessmen, or investors. Reducing spending can only help the economy by putting money back in the hands of ordinary Americans. Politicians who claim to support the free market and the lower and middle-class should take this to heart.

The reality is, however, that neither Republicans nor Democrats are serious about cutting spending. Even though U.S. military spending is exponentially larger than any other country and is notorious for its inefficiency and cost overruns, Republicans cannot seem to stomach even one penny of cuts to the Pentagon's budget. This is unfortunate because this is the easiest, most obvious place to start getting spending under control. The military-industrial complex and unconstitutional overseas military interventions should be the first place we look for budget cuts.

Similarly, Democrats are digging in their heels on not cutting any welfare or entitlement spending and instead propose to fix the deficit by raising taxes on the rich, even though the U.S. Government already has a progressive tax code and the rich already pay more than their fair share. Furthermore, these higher taxes would fall on small business owners, investors, and entrepreneurs—in other words, the source of economic growth and new jobs!

The truth is that there is no excuse for government spending being as high as it is, nor for taxes being as high as they are. Even the God of the Old Testament only asked for 10% as a tithe and offering, and Americans revolted against the King of England for taxes that amounted to less than five percent. Yet so many people today complain about "loopholes" for the rich that lower their actual tax rate to "only" 13% in some instances. Even that is a criminal amount to pay for a wasteful, abusive, unconstitutional government.

We are indeed headed to a fiscal cliff and have been long before this latest hysteria cropped up. But it is not cuts to spending or reduced government "revenue" that will send us over the cliff, it is continued government spending that will. Until the federal government limits itself to its Constitutionally-mandated role, spending and taxation will remain out of control.

Look for a "bipartisan" compromise in late December, with Republicans giving in to tax increases and settling for phony spending cuts that actually grow government, and Democrats caving on defense cuts in exchange for tax increases. This is how the government has always grown: both sides will sacrifice their pro-liberty, small government stances in certain areas in order to grow the government where they prefer.

Liberty always loses in the 11th hour.

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Reader Comments (6)

Things will never change unless the entire collapses or they willfully collapse it and it's doubtful that will happen in reality since we have the World's reserve currency and a strong military to back it up so you better get used to it DEBT SLAVES the rest of us who have been around awhile already know this. You know what they say people should lead by example and look at the top example....

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It Is Impossible For The US To Default

Dec 5, 2012 at 3:54 PM | Unregistered CommenterLadyLiberty
What about all the corporate welfare and the banker bailouts which completely dwarf the "welfare" spending for those unfortunate enough to have had their jobs shipped off overseas and their homes foreclosed on? I mean what are they supposed to do, just drop dead from starvation and disease? That's tantamount to mass murder on an industrial scale. We're talking about millions of people! I get really tired of people like Ron Paul implying that people getting welfare just to survive are what's destroying this country's economy. What rot!!

It's the merger of corporate and state power, where the corporations siphon tax payer money from government to cover their losses and finance their gambling addiction, that's the problem. It's the corporations that want the United States to become another China where people are shipped off to slave labor camps to be worked to death! Until then, they're perfectly happy to ship all their jobs to China, so we can all become destitute and cry for "government" to create "jobs" so we don't have to starve to death.

The people on the 'dole' are the victims here, not the perps! The pittance they receive from government (and it IS a pittance; try feeding yourself on $50/month!) is not anywhere near enough to break the economy of this country, corporate welfare on the other hand with it's TRILLIONS of dollars in spending, not just a few billion, certainly is!!
Dec 5, 2012 at 3:57 PM | Unregistered Commenterfurbaby
furbaby that is known as fascism and obama is a lot more like hitler then people realize. Look who he had for his jobs council crony capitalist jeff Immelt whose firm not only got stimulus money and bail out money thru the finance wing but paid no taxes. The real victims are the middle class who have to pay for it all the bottom half doesn't pay and the elite crony's like warren buffet shelter their wealth in tax exempt foundations. It's pretty bad when people go to work all day and end up eating worse then the people they have to pay taxes for including the people on food stamps and the rich on top.

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As for the homes being foreclosed guess what there are actually people who didn't buy a mc mansion they couldn't afford to begin with and they still have their homes. My daughter is one of those people she bought during the height of it but she took a normal loan one she could actually afford to pay back in fact a duplex and she still lives in it today. She and her husband work a minimum of 12 hours rotating days the days in between they still work but one or the other leaves to pick up the kids. How is it fair that people that work that hard have to pay anymore for anyone rich or poor???

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If your mad about the financial crisis and fraud take it up with obama who didn't prosecute a single one of his buddies that handsomely funded him for years

CONVICTED: Bush 1300+, Clinton 1000+, Obama 0.0 (+/-


Barack’s Wall Street Problem is Now America’s

Dec 5, 2012 at 5:45 PM | Unregistered CommenterLadyLiberty
How did we ever get to the point where the military-industrial complex eats over 50% of our nation's output? It's unnecessary, insane, and guaranteed to create lots of victims -- at home and overseas.

I will be grateful when this diseased carcass we call "government" finally dies.
Dec 6, 2012 at 8:45 AM | Unregistered CommenterChuckT
Reality sucks, dont it.

But I object on the notion of wellfare, its original intention is completly destroyed and hollow.
The truth about nation economy is that the USA is a neofaudal soscielty, where the topp makes the rule, gives the perseptions, feeds this feild with Their own prodjections of economic behaviour.
The fact is that the topp is just parasitts, most live on Intress, and is given low TaXes os money for nothing, and this Intress based system strikes several cords, not only on the debth side.
No, no, their fear of the inihiliation/almoust zero level(state bank), is their biggest seacret, their bennefisiarys from intress, is their real reason for the Pyramid sceem, the Intress/usury defacto is, money from nothing, and thats mindboggeling hughe sums, all payed by You. Why do You think the banks, never alow Us to bennefitt largly from intress, and why are You infact loosing money, even they are just deposided, You loose.

Thats why, I know that this chainreaction of the Intress policy will continue, in China/Russia and so on, the sceem just relocates, and greed will asure its living conditions.
The sole and overwhelming reason for Inflation/deflation IS Intress, remove this, and the savings are MORE secure, in the long runn, than whats been offered to day.
The currecy wil remain more stable and easier to gard against change, easyer to invest, becuase the costs are more stable regarding speculation/scams regarding price settings and so on.

The second issue is Canibalism, the mantra os growth is infact just canibalism in a grand scale, and massive in scope.
The exponential growth of a more and more narower band of corps, to own a bigger and bigger share of everything.
The dont create jobs, never have, it may be camuflaged as "company crowth", but the reality is that this grown always have a victim, a sideeffect. Minor comp. are the looser, the main street is the looser, the monopolys are suforcation all the rest of the competition, by their sheer size. And when they gett the goverment to squize the minor corps out of their way, the impact of thei Canibalism is a massive loss of work/minor corps, that in the end is not covered bu the growth of the bigg multi national companys. They move to poverty ridden lands, where labor is cheep, life is cheep, and gov, utterly corrupt, and the workers are on slave contitions, and they all do this for ONE reason, to enhamce the Margins, to make more money.

Take the margin away, and you can easely see that The Wage debat is biased, to cover for the One side of the manufactoring of products, and to demonise the opostition, we the people.
Take away the to bigg to fail, if the large orps dont pay their Tax, is the ritch dont pay their Tax, kick them our entirly, ban their comp, all over the state, and throw them out of the USA, and belive me, YOU all will benefitt.

This si the batle line, its not about comunism/capitalism/whattever, is the robberBarons aganst us, we the people.
The sceem, Is presented to you.
This may ourage You, specaly the ritch, whom is depending on Intress to maintain their wealth.
Thats why, this will turn into a Dog eat Dog senario, because they will it, then they have The Exuse to enforce the Full scale domminsce of the prison camp, formerly know as the USA, now, just a nother failed state, becomed a bannanarepublic. a playgrownd for the ritch and scameless.

wake up

“Man will never be free until the last king is strangled with the entrails of the last priest.”
― Denis Diderot
Jan 10, 2013 at 6:31 PM | Unregistered Commentermikael
I just checked, Ann still has 6 check book Blanks left .........were good to go yeat. No need to make a coin for us just yeat...?
Jan 10, 2013 at 11:00 PM | Unregistered CommenterTexas Dar

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