Ron Paul: Stop Raising the Debt Ceiling

Date: 05/23/2011

by Ron Paul

The federal government once again has reached the limit of its legal ability to borrow money, meaning it cannot issue new Treasury debt without action by Congress to increase the debt ceiling limit. As of this month, our “official” national debt- which doesn’t include the staggering future payments promised to Social Security and Medicare beneficiaries- stands at $14.2 trillion.

The debt ceiling law, passed in 1917, enables Congress to place a statutory cap on the total amount of government debt rather than having to approve each individual Treasury bond offering. It also, however, forces Congress into an open and presumably somewhat shameful vote to approve more borrowing. If the new Republican majority in the House of Representatives gives in to establishment pressure by voting to increase the debt ceiling once again, you will know that the status quo has prevailed. You will know that the simple notion of balancing the budget, by limiting federal spending to federal revenue, remains a shallow and laughable campaign platitude.

It is predictable that Congress will once again merely delay the inevitable and raise the debt ceiling, after the usual rhetoric about controlling spending, making cuts, and yes, raising taxes. We have heard endless warnings about how irresponsible it would be to “shut down the government.” The implication is that sober, rational, mature pundits and politicians understand reality, while those who oppose raising the debt ceiling limit are reckless ideologues who will harm the economy just to make a point.

But like any debtor that has to reduce its spending, the federal government simply needs to establish priorities and stop spending money on anything other than those priorities. Interest payments on our federal bond debt likely will amount to about $500 billion for fiscal year 2011, an average of $41 billion per month. Federal tax revenues vary by month, but should total around $2 trillion to $2.5 trillion for FY 2011– an average of perhaps $180 billion per month. So clearly the federal government has sufficient tax revenue to make interest payments to our creditors. For now, those interest payments represent about 12% of the total federal budget.

What nobody wants to admit is this: even if the federal government has only $1.5 trillion remaining to spend in 2011 after interest payments, this is PLENTY to fund the constitutional functions of government. After all, the entire federal budget in 1990 was about $1 trillion. Does anyone seriously believe the federal government was too small or too frugal just 20 years ago? Hardly. So why have we allowed the federal budget to quadruple during those 20 years?

The truth is, in spite of how cataclysmic some might say it would be if we did not pass a new debt ceiling, it is hardly the catastrophe that has been advertised. The debt ceiling is a self-imposed limit on borrowing. The signal congress sends to worldwide markets by raising the debt ceiling is simple: business as usual will continue in Washington; no real spending cuts will be made; and fiscal austerity will remain a pipe dream.

When our creditors finally wise up and cut us off, we will be forced to face economic realities whether we want to or not. It would be easier to deal with the tough choices we face now, on our own terms, rather than wait until we are at the mercy of foreign creditors. However, leaders in Washington have no political will to admit that we cannot afford to continue spending without any meaningful limit. They prefer maintaining the illusion and putting off reality for another day.

  • USFullOfLies

    Congress Vote On Declaration Of World War 3
    blog. alexanderhiggins. com/2011/05/15/congress-vote-declaration-world-war-3-endless-war-borders-clear-enemies-22785/

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  • 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)
    /watch?v=bX7hMj2NKTc
    /watch?v=lpBAC9dPr-o

    “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/

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  • flinstone

    the first corporations started after the civil war. Abraham Lincoln actually warned that we would have our first corporations forming from this that would start to lobby congress and start changing it from capitalism to fascim, which is the merger of state and corporate power. In 1913 right after the federal reserve was created you had the first big corporations. The fed is not owned by the us goverment as the public are lead to believe. The president is told by the cartel who to appoint as chairman of the federal reserve, like Paul Vocker former head of federal reserve (member of Trilateral Commision, Cfr, and bilderberg group, and Alan Greenspan(member of Trilateral Commision, cfr, and bilderber group. The us goverment borrows money or rather credit from the fed and taxpayers pay the intrests that swells the profits of the pivate banks that make up the federal reserve system. the fed prints the money and gives it to the us treasury at 6 percent intrest, and the goverment spends more than it recieves from the fed and is in debt to it
    2/3 of the money you spend in taxes goes to the federal reserve to pay the intrest on the money the goverment borrows, and only 1/3 goes to goverment.
    If you look at a american banknote it will say federal reserve note- This note is legal tender for all debts public and private. The federal reserve is a private cartel of banks and yet the american paper currency is called a federal reserve note. The rothschild cabel owns the dollar as it owns sterling and the rest. Indeed the paper money is worth nothing backed by nothing, and means nothing more than iou.

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    • flinstone

      british banknotes promise to pay the bearer on demand of the sum of whatever the note is said to be worth. If the money was actually worth nothing, the note we hand over would pay the debt, and would not just be a promise to pay. That would make it an IOU-which is what it is. Our money only buys something because we think it worth something. It is like a counterfiet note that has purchasing power only until somewone holds it to the light to see it is fake. The policies of the central bank are coordinated by the bank of international settlements formed in 1930 and its associated network. The banks charter drafted at the international bankers confrence, and the bis is based in switzerland one of the most important centers of the financial web. That is why Switzerland is never attacked in enginnered wars.
      The bank of international settlements interlocks with the european central bank, world bank, imf, wto, and others to form the iron grip that controls global finance and trade, and therefore the choice and opportunities of people and countries. Goverments are at the mercy of the financial system, and of course the bankers control the goverments.

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      • flinstone

        Today the global financial nexus is coordinated by central banks in almost evrey country. These appear to be working independently but in fact are working together to a common end. The rothschild controlleed bank of England chartered by the black nobility William of orange in 1694 has been a central manipulater in this web, and now the rothschild-controlled privately owned Federal reserve in the us is a highly significant player. Ironically, the federal reserve is neither federal nor has any reserve. The bankers and politicians met at a place called Jekyll Island in Georgia in 1910 to plot their strategy to impose the federal reserve, and among them was senator Nelson Aldrich, the grandfather of Nelson Aldrich Rockefeller, the four times mayor of new york, and the vice president under President ford.
        Adrich’s dauther Abby was married to Jhon d Rockeffeler Jr. For years after the meeting on Jeckell Island the educaters, commentators, and historians denied that it even took place. In 1902 the Rothschilds sent one of their agents Paul Warburg to America with his brother Felix to rearrange us banking to suit Rothschild. Another brother Max Warburg stayed at home in Frankfurt Germany to run the family banking buisness there. Max was a director of the chemical giant Ig farben that funded Hitler and ran the Auschwitz concentration camps, and paul was director of farbens american division. After arriving in the us Paul Warburg married Nina loeb, of the rothschild controlled kuhn, Loeb and company while Felix married Frieda Schiff, the dauther of Jacob Shiff, the head of Kuhn, Loeb, and Co, and the guy who helped to fund the russian revolution. When jacob shiff arrived in america to join Khun, loeb and co he married the dauther of Solomon Loeb.
        The federal reserve bill known as the Aldrich bill was passed in 1913 and american debt has soared ever since, just as it was meant to. The federal reserve system is a private cartel of banks of which the bank of new york is the most powerful.

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  • PaulRon2008

    Viva La LIBERTAD, viva viva via Ron Paul.

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  • Gioxtream

    Special forces of good are waking up ,standing up to Tyranny . Let ‘s allow the right Person take this country back and raise from the ashes up….Let’s make history together.We Own it to our Future generations……Let’s make an Example to Others in the Government in how things need to be done. Let’s choose RON PAUL IN 2012. BECAUSE NO MAN,NO ARMY CAN STOP AN IDEA WHOSE TIME HAS COME !

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  • urdisturbing

    Ron Paul is the leader of a religion. All of his followers are emotional young people, none of them are serious academics (unless they’re getting paid by David Koch). Like most religious people, his followers mean well. It’s just that their reasoning faculties have been disabled by their emotions and the propaganda they’ve been exposed to.

    You can’t blame them for getting angery and looking for answers. Their country has been getting raped by the top 0.1% for some time now.

    Like or Dislike: Thumb up 1 Thumb down 4

    • Michael

      No urdisturbing, it’s not just young people. The tone of some of the replies makes it painfully obvious that there are a lot of older people supporting Ron Paul too. Stupid older people who have been propagandized into buying the load of bullshit that Ron Paul peddles. It’s cruel to lead them on as he does especially when he must know himself that his issues are all losing issues. As raising the debt ceiling will of course be too. Good grief!

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  • krissmith1986

    only 304 views?

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  • bkr360

    Ron Paul: Explained it well that the 2 party system is finished, nothing ever gets done and our country is falling into a Debt Black Hole…This is why we need you to run as an Independent with Ventura…The both of you can pull this country back to its glorious self and the people can finally feel at ease…These insane wars, the police state we are in now need to go away or the people are going to revolt and I am afraid that it is going to be bloody mess, if Obama is aloud to continue…

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  • IBloodSweatTears

    Get a food storage people, If we default we could go into hyperinflation.

    Then, Get out & support Ron for 2012 & save this country!

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  • 86THECRITIC

    And how are we supposed to stop raising the debt cieling, Mr. Paul. Answer me that.

    Like or Dislike: Thumb up 0 Thumb down 4

    • Michael

      See folks, this is the kind of lunacy that lurks where Ron Paul treads. A commenter asks a simple question of Ron and he gets 4 thumbs down. Why not 4 thumbs up and an answer from Ron Paul? Well, because Ron Paul doesn’t have any answers and that’s because his supporters don’t care. They just want to keep on drinking his Kool-aid.

      Oh, and Paul Ryan, how’s your plan working out for you so far?

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  • saintearth

    neither a borrower nor a lender be.

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  • toppgunn2232

    default so the bankers can take it in the ass!

    Like or Dislike: Thumb up 3 Thumb down 0

  • saintearth

    declare bankruptcy.

    Like or Dislike: Thumb up 3 Thumb down 0

  • blythebaby777

    agree or disagree with Ron Paul’s positions., He is an honest man in a world of liars and thieves

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  • republicunderground

    My President!

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  • maokly1

    Either ways my patriotism commands me to support you and you will ALWAYS have my vote!

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  • maokly1

    I adore Ron Paul thus I want him not to be president, they will take him out like JFK…I love you Ron Paul but a dead patriot is futile.

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    • Michael

      Don’t worry maokly1, there’s nothing to fear. Ron Paul could get elected in 2012 to dogcatcher and nobody will care enough to threaten his life.

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  • Metalgod668

    Wow, this guy is the ONLY polititian I’ve ever heard that cuts the bull & speaks 100% sense!!!!

    Like or Dislike: Thumb up 4 Thumb down 0

  • msungs

    Why even have a debt ceiling if Congress is just going to keep raising it. It’s stupid to even call it a ceiling. Congress is an alcoholic (drug of choice is cheap money). It gets liquored up real good everynight by the bartender Osama Bin Bernanke. He pours the drinks real stiff. We could stop drinking now + experience the worst hangover ever (we might even die) and hopefully survive or keep drinking and gurantee ourselves a slow death by suffocating in our own vomit (debt). Congress will drown

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  • AnyeongF91

    I would definitely fight a war for this President.

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