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.



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87 Comments:

  1. I think all US Presidents are just silly little marionettes who's strings are controlled by corporations. Ron Paul is a part of the same system that is controlling everything we eat, drink and breath on this planet. We need a real change, we need a Revolution, we need to make them respect that sacred document that is being raped to its foundation right now: The Constitution. We are The People. It has to FOR THE PEOPLE and BY THE PEOPLE.

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  2. this man unfortunately will never be elected because there are people out there that handpick these presidents and they will never allow a man for the people sit in the oval office

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  3. Yah i agree! I read a story about this guy from Vietnam that came to America with nothing but his little suitcase, and ended up a multi-millionair. Now where else could that happen, lol? Yet you hear all this talk about the, "poor immigrant"... However, with the Trojan Horse of Socialist Monopolys & the Fed destroying our country intentionally there is almost no reason to even be a talented & hard working American anymore. And that is the same thing that happened in Communist Russia.

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  4. Yah i agree! I read a story about this guy from Vietnam that came to America with nothing but his little suitcase, and ended up a multi-millionair. Now where else could that happen, lol? Yet you hear all this talk about the, "poor immigrant"... However, with the Trojan Horse of Socialist Monopolys & the Fed destroying our country intentionally there is almost no reason to even be a talented & hard working American anymore. And that is the same thing that happened in Communist Russia.

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  5. That ticket wouldn't work. Dr. Paul is a libertarian minded conservative. Kucinich is a libertarian minded progressive. RP is pro life & pro constitution. Kucinich is pro abortion & for big govt spending unless it's war. The only thing the 2 congressmen have in common is that they're against these lies we call war. That ticket sounds good on paper but they're clearly distinguished from one another.

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  6. You forgot to mention Palin & how wacky she is w/her theories.

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  7. Now Dr. Paul is being teabagged by Dick Armey & the Texas Tea Party. You should go to the TTP website & they're calling Dr. Paul a RINO.

    MSNBC's Mike Murphy is saying Dr. Paul is NOT a serious candidate in 2012. I say to Murphy's comment...BULLSHIT!!

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  8. Hi ALL, look what I found, Amazing Discoveries: a-d3(dot)blogspot(dot)com ... Enjoy :-)

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  9. Black Chamber of commerces
    Black Rodeo
    Business for Black Men and Women org's
    Black political Caucasus

    ^ I bet deficithawker would consider these racist groups if they had "White" instead, eh?

    Why don't you show us more of your true collectivist racist mindset.

    You are a minority in your thoughts. You will never separate a group of people, of all colors and backgrounds, AMERICANS, who come together to advocate liberty, freedom and a smaller less intrusive government.

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  10. Black Chamber of commerces
    Black Rodeo
    Business for Black Men and Women org's
    Black political Caucasus

    ^ I bet deficithawker would consider these racist groups if they had "White" instead, eh?

    Why don't you show us more of your true collectivist racist mindset.

    You are a minority in your thoughts. You will never separate a group of people, of all colors and backgrounds, AMERICANS, who come together to advocate liberty, freedom and a smaller less intrusive government.

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  11. Black Chamber of commerces
    Black Rodeo
    Business for Black Men and Women org’s
    Black political Caucasus

    ^ I bet deficithawker would consider these racist groups if they had "White" instead, eh?

    Why don't you show us more of your true collectivist racist mindset.

    You are a minority in your thoughts. You will never separate a group of people, of all colors and backgrounds, AMERICANS, who come together to advocate liberty, freedom and a smaller less intrusive government.

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  12. Great video rross. It's always sickening when the left tries to portray those who advocate liberty and smaller government as racist. The only racist are those who would go out of their way to make things easier for a minority. As if those of Hispanic, African ect.. heritage aren't capable of getting into college and work places. How sickening for government to basically and indirectly make things easier, as if they are some how lesser. THAT is racism.

    Liberty and freedom is for ALL.

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  13. Great video rross. It's always sickening when the left tries to portray those who advocate liberty and smaller government as racist. The only racist are those who would go out of their way to make things easier for a minority. As if those of Hispanic, African ect.. heritage aren't capable of getting into college and work places. How sickening for government to basically and indirectly make things easier, as if they are some how lesser. THAT is racism.

    Liberty and freedom is for ALL.

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  14. Ron Paul is the only one that supports capitalism. PERIOD. All the other nominated assholes are interested in crony capitalism, not true capitalism.

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  15. Good Comment 8) If you want to see diversity everyone go watch my first video. TY!

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  16. Good Comment 8) If you want to see diversity everyone go watch my first video. TY!

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  17. Hello ALL... look what I found: Amazing Discoveries: a-d3(dot)blogspot(dot)com ... Enjoy :-)

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  18. If Ron Paul doesn't run or get elected president, I'm moving out of america

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  19. Ron Paul would win if he got the Republican nomination. The typical uninformed voters never hear his message, but they would certainly agree with it.

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  20. Ron Paul for President! Kicunich for Vice as Independents!

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