Ron Paul: Budget Cuts are Meaningless Without Fed Transparency

Date: 04/18/2011

by Ron Paul

Congress focused on issues surrounding government spending this week as talk of deficits, the national debt, and the debt limit saturated the airwaves. This is a positive development. In years past, there was very little concern over how much was spent here in Washington, how it was spent, or how much of our gross domestic product was being consumed by government. That blissful ignorance naturally resulted in decades of government spending with impunity, bringing us to where we are today: trillions in debt with astronomical entitlement obligations that will be impossible to fulfill in the not too distant future. So it is a good thing that there is so much political pressure now on our leaders to actually put the brakes on runaway spending.

However, even the most generous estimate of the spending cut passed this week – $38.5 billion – is a paltry 3.5% of the $1.05 trillion in spending through the next 5 months. This hardly makes a dent in our government’s mountain of debt. Even worse than that, the non-partisan Congressional Budget Office (CBO) stripped away the accounting sleights of hand and scored it as only $352 million in cuts, which works out to less than half of one percent of spending. Still, the tiniest cut is better than the massive increases we have become accustomed to in federal budgets.

Of course, our disastrous wars in Afghanistan and Iraq are not even included in this budget as they are considered emergency spending. They constitute $3.3 billion in spending in the same period of time, so they more than cancel out any small cuts the warmongers may crow about.

I voted against the legislation funding government for the remainder of this year, as well as next year’s budget because, as in years past, government spends far too much on unconstitutional programs. In spite of any rhetoric about fiscal responsibility, a point three percent (0.3%) cut does not suddenly make the rest of the spending constitutional or responsible. And, if the American people do not continue to hold the politicians’ feet to the fire, you can be sure we will see massive spending increases again in the future.

In addition to Congress’ spending, many Americans are finally paying attention to the spending done by unelected banking cronies at the Federal Reserve. Recently the Fed was forced to reveal some details of loans given out during the financial crisis of 2008 and they are truly shocking. Matt Taibbi points out in a recent Rolling Stone article that two very well-connected Wall Street wives got together and formed a real estate investment company that garnered $220 million in so-called “loans” (free money) from the Fed. Compare this number to the $352 million in spending cuts the CBO says are in the current budget! A few months later, one of the wives bought a $13.5 million personal residence with her husband, the CEO of Morgan Stanley.

The unelected, unaccountable Fed hands out as much or more money this way as our federal government spends, and yet receives hardly any attention. This is why I believe transparency of the Fed is a critical step to regaining control of our financial situation in this country. We can never get meaningful reforms if all eyes are on the $352 million so-called cuts, and transactions like the $220 million given to Wall Street cronies are done in the shadows. This is why I have reintroduced my Audit the Fed bill to this Congress. HR 1207 is now HR 459 and is essential to true fiscal reform and responsibility.


  • ustfu

    Hello from San Francisco, CA. I’ll vote for you. Go Ron!!

  • joygarner

    You ROCK dude.


  • LongLiveOx

    Oh my god, what he’s saying about the wives is making me nauseous. When are Americans going to wake up? I truly don’t believe that they will wake up, until they are FORCED to wake up, and that is terrifying. I heard of another poll today, of potential presidential candidates, and of course, they completely ignored Dr. Paul. Corporate’s already planned it out for it to be Obama vs. Trump. Ron Paul will be getting my vote, whether he runs or not. He’s one of the only politicians I trust.

  • rross27

    The Fed. HAS NEVER had a non-Jewish Chairman since its creation in 1913. Go investigate how the Fed. Act was passed. It is VERY SIMILAR to how the current “Death Care” bill was passed. Lies, threats, subterfuge, and confused propaganda lingo. We the People should DEMAND that any bill is written concisely in language for the common man! And WTF doesn’t AIPAC have to register as an “agent of a foreign government” like the other foreign lobby’s!? Israel doesn’t even allow foreign lobbies there!

  • campaign4liberty

    Down with NWO tyranny!
    visit Liberty Poet

  • Armageddon2077

    I’m starting to think he doesn’t want to run for President in 2012… this makes me sad…

  • xtop23

    The one Wall Street wife that didn’t get a check from the Fed disliked this video

  • ZoneTelevision

    A winning ticket would be Ron Paul and Dennis Kucinich Best of both worlds
    Ron Paul 2012

    • tj

      lol…I guess it is ok to have support from fools….

      Ron Paul and Dennis the Menace are at the complete opposite of the political spectrum…but, we will still taake your vote…thank you…

      by the way, please go see Atlas Shrugged and take a non supporter of PAul with you

  • d1ricks

    thx ron

  • theQiwiMan

    302 views as of this moment. So sad that crap like Rebecca Black has millions of views when this message goes almost completely unheard. :-/

  • Goremetalsatan

    it pains me to see so many morons out there talking bad about mr paul. it just shows you the type of people we live amongst. but then again operation mockingbird .

  • derekstaroba

    I’m so glad God saw fit to bless us with Dr. Paul

  • thejobloshow

    You guys are about to hit your debt ceiling and lose your credit rating, America.

    Maybe it’s time you moved to Switzerland.

  • kixdirtsevin

    HR459… know to do people get on the phone. lets all END THE FED.

  • WKaliberr

    Ron Paul is a farce

  • kariido1

    If Dr. Paul can’t get this country back on it’s feet again, to return to it’s sound constitutional principles, then I fear it may be too late.

  • rubyslippersebels

    ron paul is the only one for the PEOPLE

  • XpresloX

    i cant wait Ron Paul to run the country !

  • USFullOfLies

    U.S. 4-star General Wesley Clark (Ret.), explains that the Bush Administration planned to take out 7 countries in 5 years: Iraq, Syria, Lebanon, Libya, Somalia, Sudan, Iran (2007 upto 2012)

    “Japan’s government, threatened with more HAARP attacks, pays 60 trillion yen to Feds”
    eclinik. wordpress. com/vital-issues/ben-fulford/japan%E2%80%99s-government-threatened-with-more-haarp-attacks-pays-60-trillion-yen-to-feds/

  • GMGvanS