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.

  • XPIOLT

    He sounds Presidential here. He’s got my vote. Ron Paul in 2012 and Rand Paul in 2016.

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  • PaulRon2008

    Ron Paul… One of the few Honest persons in Washington D.C.

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  • waterchildtera

    the system has been infiltrated and the evil money changers are at it again

    they need to be eradicated!

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  • Tnat1on

    FED is robbing Americans blind. I can’t see how they cann’t be audited. WHO ARE THEY?

    Good luck Ron on fighting the good fight!

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  • MIDWEST507REPIN

    Ron Paul’s Debate Day Money Bomb!! MAY 5, 2011!! Google+LibertyPAC

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  • 1kingconan

    GOD BLESS RON PAUL!! 2012!!

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  • rmr355

    TELL EVERYBODY YOU KNOW ABOUT RON PAUL!

    WE NEED RON IN OFFICE OR ITS OVER, MOVE TO MARS…

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  • HoustonTexas457000

    There should have been an interruption across all radio airwaves and media outlets While Dr. Ron Paul was giving this message.. should’ve cutt hannity right off in the middle of his fucking show on fox.

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  • HoustonTexas457000

    RON PAUL KICKING ASS AND TAKING NAMES

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  • kappy0405

    Unfortunately, Paul will never win a Republican primary because he’s not a NEOCON, and 90% of Republican voters are.

    Sad, but true.

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  • therealaj123

    Somebody needs to get Paul a better mic.

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  • cZiebenhaus

    PRESIDENT ^^

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  • PeoplePower

    The Federal Reserve Are A Threat To National Security, They Are Global Financal Terrorists. I Personally Would Declare War On The Federal Reserve & Send In The Marines.
    An Audit Of The Federal Reserve Is Inevitable, By The Congress Transparency Act Or By Wikileaks & Anonymous, We Will Get The Files.
    The People Are The Real Power In The World. :-))

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  • delanogaston

    Did Bernanke and Geithner come here to dislike this video? Sad little men…

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  • dj4real4546

    please run ron!!!! we need you!!!

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  • TheJokaD

    hey mr. comment under neath mine get a job!!!!!!!!!

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  • WKaliberr

    Ron Paul needs to shut the hell up. He is a farce. The Fed is keeping us from bankruptcy and living like a 3rd world country

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  • Zehcnas89

    RUN RON RUN!

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  • GunClingingPalin

    HR459 END THE FUCKING FED!

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  • 1eyednewt

    Audit the Fed, Make them pay the difference, then END the FED!!!

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