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This week the US government reached its 31.4 trillion dollars borrowing limit, better known as the “debt ceiling.” This led to a showdown among House Republicans, President Biden, and congressional Democrats.

House Republicans are demanding that President Biden and Senate Democrats agree to include spending cuts with the debt ceiling increase. However, President Biden and the congressional Democrats are refusing to negotiate with Republicans. Rather, they and their allies in the mainstream media are lambasting Republicans for their “irresponsibility” in seeking to include spending cuts with an increase in the debt ceiling.

America’s national debt is approximately 122 percent of the gross domestic product (GDP), meaning the government owes more than the population produces. Interest payments on the national debt follow in size behind other federal budget big spending areas of Social Security, Medicare, and “defense.” While interest payments are made, the national debt continues to grow each year.

Government spending steals resources from the private sector. Thus, there is less capital available for private businesses to grow and create new jobs. Government spending also contributes to price inflation and the declining value of the dollar as the Federal Reserve monetizes the debt. One reason the Fed cannot allow interest rates to rise anywhere near where they would be in a free market is that it would cause the federal government’s interest payments to rise to unsustainable levels. Considering these facts, it should be clear that the irresponsible ones are those who think the government should increase its credit limit without cutting spending.

This is not to say that establishment Republicans like House Speaker Kevin McCarthy are heroes of fiscal restraint. Rather, McCarthy, like most Republicans, objected neither to increased spending nor to debt ceiling suspensions when Donald Trump was president. Further, any Republican spending plan will likely continue increasing spending on the military-industrial complex while refusing to address the looming cost problems with Social Security and Medicare.

While some Republicans are willing to discuss reforms to Social Security and Medicare, most are still too afraid of the “senior lobby” to support any changes in the programs — even if such changes will not harm current beneficiaries. Consequently, it is unlikely Congress will pass meaningful entitlement reform — at least until it is forced to do so because the Medicare and Social Security Trust Funds run out of money. Insolvency is projected for the Medicare Trust Fund in five years and for the Social Security Trust Fund in 12 years. Of course, Congress may be able to avoid making tough choices since the Federal Reserve will likely cut government benefits, along with workers’ wages and the value of savings, via the inflation tax.

Following early reports that the House Republican leadership was open to supporting cuts in military spending, there arose a predictable cry from Republican hawks that any reduction in spending would leave the US and its allies vulnerable to our enemies. The limited cuts considered, though, would still keep America with a military budget exceeding the combined military budgets of the next nine biggest spending countries. After some pressure from the military-industrial complex’s loyalists and propagandists, most Republicans retreated from supporting defense cuts.

A problem with many fiscal conservatives is they accept the premise of the welfare-warfare statists. Thus, they are unable to make consistent principled arguments supporting spending cuts and opposing spending increases. The key to restoring a free society is for a critical mass of individuals to reject statism.

(Republished from The Ron Paul Institute by permission of author or representative)
 
• Category: Economics, Ideology • Tags: Government Debt, Republican Party 
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  1. Durruti says:

    The limited cuts considered, though, would still keep America with a military budget exceeding the combined military budgets of the next nine biggest spending countries. After some pressure from the military-industrial complex’s loyalists and propagandists, most Republicans retreated from supporting defense cuts.

    A problem with many fiscal conservatives is they accept the premise of the welfare-warfare statists. Thus, they are unable to make consistent principled arguments supporting spending cuts and opposing spending increases.

    Excellent Key to Ron Paul‘s essay.

    We must understand:

    The United States’ Military Budget has little to do with ‘Defense’, but much more to do with imperialist Offense.

  2. Suggestion for a title:

    On The Hypocracy:

    The Hypocricy of Accountability of the Feds and Central banking, Stockmarkets and Congress. Finance has no accountability.

  3. Decoy says:

    The Defense Budget is truly misnamed. Over the past year I have reminded a number of acquaintances that we have the most naturally protected borders of any country and that’s one reason our country has never been invaded by a foreign army, so why is our defense budget larger than the next 9 countries? They seem perplexed but nevertheless recover shortly to proclaim standard pablum that we need to support our military. Russia spends about 8% of what we do but no western country or NATO seem eager to confront Russia directly. Therefore came the vile Ukraine proxy war which AMLO of Mexico quickly described as “the United States sends the money and Ukraine sends the dead bodies. Washington D. C. needs to do a 180° turn on foreign policy but I am not optimistic about that happening.

    • Replies: @unzrocks
  4. unzrocks says:
    @Decoy

    US foreign policy since the end of WW2 is that the US will be the sole superpower on planet earth. With the break up of the USSR, the US policy is full spectrum domination of the entire planet so the US military’s purpose isn’t for defense of the mainland, it’s for global hegemony. Notice any countries that defy the US are sanctioned (Cuba, North Korea, Venezuela, Iran), others are invaded and destroyed (Iraq, Libya, Syria, Afghanistan, Vietnam, Korea) and the two remaining adversaries are Russia (currently in a proxy war) and China (the biggest threat of all and must be dealt with in the next 5 or so year before China becomes too big and strong to handle). Notice the Ukraine war is the warm up and preparation for a proxy war with China. Notice the re-arming of Japan and also strengthening of South Korea for Japan / South Korea / Taiwan to go to war with China in the next 5 or so years. At least that’s the plan. Not sure if Taiwan and South Korea will fall into the trap, but Japan is fully on board. We will see, won’t we.

    • Replies: @Jokem
  5. Jokem says:
    @unzrocks

    I am not sure how you categorize Vietnam and Korea (South?) as ‘destroyed’. Vietnam seems to be doing well, following the example of Red China, and South Korea contrasts with its northern neighbor as a cornucopia of prosperity.

    • Replies: @Durruti
  6. unzrocks says:

    Vietnam was totally destroyed. 2.5 – 3.0 million lives lost, more bombs were dropped on Vietnam than WW2. The US carpet bombed the country back into the stone age, also chemicals like agent orange was sprayed throughout the jungles, etc. It took decades before the country recovered. So to say that the country like Vietnam and South Korea are doing right now, well that’s because that’s 50-60 years ago. It took decades to recover. It’s going to take decades (like 25-50 years) for Afghanistan, Syria, Libya, Iraq to have a chance of recovering as well. If that’s not being destroyed, I don’t know what is.

  7. unzrocks says:

    North Korea has been the subject of sanctions ever since the armistice (cease fire). In other words, North Korea is shut off from the world economy, they cannot trade or do business with anyone. The only country keeping them alive is China, which doesn’t follow any US sanction laws, or at least they try not to. If you apply maximum sanction to South Korea, it would be a poor, destitute country just like North Korea as well.

    • Replies: @Jokem
  8. Durruti says:
    @Jokem

    I am not sure how you categorize Vietnam and Korea (South?) as ‘destroyed’. Vietnam seems to be doing well, following the example of Red China, and South Korea contrasts with its northern neighbor as a cornucopia of prosperity.

    In the Imperialist assaults from America:

    Vietnam suffered 2 million deaths (figures from a Senate subcommittee). Do you recall the Napalm & massive bombings of the Saigon suburbs & the rest of the country?

    The total war casualties for Korea, North & South, have been estimated from 2 to 4 million (by the Governments of North & South Korea).

    China lost some 30 million (from the Japanese attacks that began in the early 1930s, & including the WW II conflict 1939-1945).

    These Nations, and Serbia, and Russia, and Germany, & Poland, were much damaged During WW II. Wars do that.

    Recently, Europe’s finest Philosopher, Alain Soral, visited North Korea, and with a film crew did much filming. His films, displayed in France, showed a modern Nation that had rebuilt itself – from the ashes of a great horror. Its children attend school, their parents work, and they all eat.

    Vietnam has also recovered, although “American anti-Personnel bombs (illegal by the Geneva Convention), exist in great numbers, and kill hundreds each year.

    Russia & other European nations have also rebuilt since WW II. America has not experienced an equivalent horror of war destruction. A few Southern cities were rebuilt after the Civil War, and a few towns were repaired after the British burned them down during our war for Independence.

    China is only “Red” on some maps. Their government is no more Democratic than ours in America, and no less. Their Government has 1 military base outside its country, and Russia, at last count, has 3. America has 700+ foreign military bases (Ron Paul‘s count is more than 1000).

    And who controls our America? And where is our Freedom?

    Our infrastructure is in decay, as is our Morale. The emotional damage to our People since November 22, 1963, is beyond measure, and represents a destruction of human aspirations and values that exceed mere physical damage from any war.

    We lost a fine President and a Republic. We have lost our country. And, worse of all, we have not risen to restore our republic, and honor our murdered President and his brother. History will record that no Nation, and its people, has lost more, and will suffer as much as ours.

    Dr. Peter J. Antonsen – nom de guerre, Durruti

    • Replies: @Jokem
  9. Jokem says:
    @unzrocks

    If the Noth Korean Sanctions were lifted, it would still be a poor destitute country with a massive army and even more serious Nuclear capability.

  10. Jokem says:
    @Durruti

    So Vietnam and North Korea were not ‘destroyed’ or they would never have recovered.

    Recently, Europe’s finest Philosopher, Alain Soral, visited North Korea, and with a film crew did much filming.

    You have got to be kidding. Calling him

    Europe’s finest Philosopher

    is tantamount to calling the same for Karl Marx.

    • Replies: @Durruti
  11. Durruti says:
    @Jokem

    Of course, your comment omits discussion of Soral’s film, which contains factual evidence, in comparison to your empty attempts at one-shot ambushes.

    Soral’s film is facts, and your back shots, are back shots.

    You attempt to utilize Semantics to support your point of view, as you have no facts to support your inferences.

    I much prefer Soral‘s philosophy to that of Marx. However, I recommend you read, Marx’s 18th Brumaire of Louis Bonaparte after which, you might better evaluate Marx. This is of use to you if you intend to continue to Back Bite discussions of, upon mere mention of—.

    https://www.bing.com/ck/a?!&&p=081d75c1c52a2717JmltdHM9MTY3NDY5MTIwMCZpZ3VpZD0wNTM4ODE1MS02M2UxLTY0ZTctMjU1ZS05M2Y0NjI4ZDY1YWUmaW5zaWQ9NTE5MA&ptn=3&hsh=3&fclid=05388151-63e1-64e7-255e-93f4628d65ae&psq=marx+18th+brumaire+of+louis+bonaparte&u=a1aHR0cHM6Ly93d3cubWFyeGlzdHMub3JnL2FyY2hpdmUvbWFyeC93b3Jrcy8xODUyLzE4dGgtYnJ1bWFpcmUv&ntb=1

    Your comments are so silly, shallow, and lacking in content, that one might assume that your role on this website is to waste the time of serious commentators. Go ahead; tell us what you really think, in detail. I will be happy to be proved wrong.

    My time is up. Have a good day!

    • Replies: @Jokem
  12. Jokem says:
    @Durruti

    Soral is a Communist, and thus, cannot be relied upon to evaluate North Korea objectively.
    North Korea does not have a free press, so will only allow what is favorable to the government to be reported.

  13. onebornfree says: • Website

    R.P. : “A problem with many fiscal conservatives is they accept the premise of the welfare-warfare statists. Thus, they are unable to make consistent principled arguments supporting spending cuts and opposing spending increases.”

    i’m so tired of Ron Pauls soft sell, “amenable”, “conservative” pronouncements. Its all he’s ever dished out. The “nice” conservative/libertarian in a suit and tie to make him supposedly more acceptable to the idiot masses .

    He understands Austrian economic theory and that the Fed is a scam – big deal! [ So do I- so what?]

    Spending cuts are a waste of time. 1000’s of entirely unconstitutional agencies/programs would still remain in place, and new ones would still be created out of nothing.

    The cancerous unconstitutional agencies and programs must be entirely abolished and replaced with _nothing_.

    _All_ of them! Now! Including Social Security, Medicare/Medicaid and all other forms of individual and corporate welfare!

    No pussy-footing around! No more warmed- over conservative “spending cuts” B.S.!

    Playing nice and fantasizing about supposed/imagined spending cuts is a complete waste of time!

    Ron Paul fans need to move on/ get over him and his soft-sell spending cuts rhetoric, and the sooner the better:

    “This governments grown too big for its boots
    We’ve got to cut it back down, back down to the roots
    Its taken most all of our freedoms away
    There ain’t much freedom left in the US today”

    Chorus: “We’ve got to start us a new revolution
    And get back to the old constitution
    We’ve got to stand up and fight for the whole Bill of Rights
    Its time to start over again”

    Song: “New Revolution”: https://soundcloud.com/onebornfree/new-revolution-the-harry-browne-song-new-mix-081522-mix3

    Regards, onebornfree
    https://onebornfree-mythbusters.blogspot.com/

  14. Durruti says:

    Placing this here – in honor of Senator Rand Paul, the son of Ron Paul

    Listen to this – including the second half.

    You might recall the History of WW I & WW II. And look at a map of Europe in case you do not know where countries are.

    Recall that WWs I & II began in East Europe. And WW III is heating up in the same location. Also understand why the Zionist controlled American puppets blew up the North Stream gas pipelines – that would have brought Russian gas to Germany. Understand that Germany is the leading INDUSTRIAL country in Europe, & Russia is the leading SUPPLIER of Raw Materials & Gas to Europe.

    That (natural European business connection), has been blocked by the Zio/American coup that overthrew Ukraine’s Neutralist elected government 10 years ago, and provoked the war in the area.

    Zio/America wages war against Germany, as well as Russia, & blocks the benefits that this natural business cooperation between Germany and Russia would bring to Europe.

    Preview YouTube video HUGE Antiwar Victory Won By RIGHT WING!

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