Ron Paul: The U.S. Government Is Defaulting on the American People

by Ron Paul

The debt ceiling debate is providing plenty of opportunity for political theater in Washington. Proponents of raising the debt ceiling are throwing around the usual scare tactics and misinformation in order to intimidate opponents into accepting more debt and taxes. It is important to distinguish the truth from the propaganda.

First of all, politicians need to understand that without real change default is inevitable. In fact, default happens every day through monetary policy tricks. Every time the Federal Reserve engages in more quantitative easing and devalues the dollar, it is defaulting on the American people by eroding their purchasing power and inflating their savings away. The dollar has lost nearly 50% of its value against gold since 2008. The Fed claims inflation is 2% or less over the past few years; however economists who compile alternate data show a 9% inflation rate if calculated more traditionally. Alarmingly, the administration is talking about changing the methodology of the CPI calculation yet again to hide the damage of the government’s policies. Changing the CPI will also enable the government to avoid giving seniors a COLA (cost of living adjustment) on their social security checks, and raise taxes via the hidden means of “bracket creep.” This is a default. Just because it is a default on the people and not the banks and foreign holders of our debt does not mean it doesn’t count.

Politicians also need to acknowledge that our debt is unsustainable. For decades our government has been spending and promising far more than it collects in taxes. But the problem is not that the people are not taxed enough. The government has managed to run up $61.6 trillion in unfunded liabilities, which works out to $528,000 per household. A tax policy that would aim to extract even half that amount of money from American families would be unimaginably draconian, and not unlike attempting to squeeze blood from a turnip. This is, unequivocally, a spending problem brought about by a dramatically inflated view of the proper role of government in a free society.

Perhaps the most abhorrent bit of chicanery has been the threat that if a deal is not reached to increase the debt by August 2nd, social security checks may not go out. In reality, the Chief Actuary of Social Security confirmed last week that current Social Security tax receipts are more than enough to cover current outlays. The only reason those checks would not go out would be if the administration decided to spend those designated funds elsewhere. It is very telling that the administration would rather frighten seniors dependent on social security checks than alarm their big banking friends, who have already received $5.3 trillion in bailouts, stimulus and quantitative easing. This instance of trying to blackmail Congress into tax increases by threatening social security demonstrates how scary it is to be completely dependent on government promises and why many young people today would jump at the chance to opt out of Social Security altogether.

We are headed for rough economic times either way, but the longer we put it off, the greater the pain will be when the system implodes. We need to stop adding more programs and entitlements to the problem. We need to stop expensive bombing campaigns against people on the other side of the globe and bring our troops home. We need to stop allowing secretive banking cartels to endlessly enslave us through monetary policy trickery. And we need to drastically rethink government’s role in our lives so we can get it out of the way and get back to work.

  • bossrube53

    ronpaulsignbomb . com

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  • http://www.youtube.com/profile?user=bossrube53 bossrube53

    ronpaulsignbomb . com

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  • Audie C Gates

    With Ron Paul at the helm,we’ll be able to start saving money again!

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  • Disgusted

    I have read a few comments,and I’m sure this one will be brushed aside as well. I wonder how many people here are like me. The last vote I submitted was for Clinton,after that,there was nobody to vote for! You can knock me for my vote,but I believed in Clinton,and he delivered. Now we have this Paul guy…my Dad told me to never trust any man with two first names. It seems my Dad never met a man with a bigger pair than mine. I don’t know about anyone else,but I want the country my parents lived in….my grandparents lived in. Not this mess we live in now. I am sick and tired of this scare tatic shit!
    Do you feel Dr.Paul will rid this country of the filth the politicians spew? I do. Ladies and gentlemen,we cannot take to arms against this mighty giant,the corrupt USA,so let us make our voices heard at the voting booth and rid ourselves of these diseased and corrupt politicians

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  • PeoplePower

    No more defaults pay the bill already! ben bernanke is like a filthy whore lots of cash spreading sht everywhere.

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  • http://RonPaul.com Eli Webber

    It seems to me we have all had a taste of bad Gov. over the years .Gov. that makes laws without the peoples consent Etc. and laws or Excecutive orders by a President. These laws are sometimes passed ,without the Rep. or Sen. reading the laws they vote on . or there not even present to debate them .why on earth do we pay people to serve us in Gov. there not about ReP. us. When are we going to say enoughs , enough…If there not doing there jobs lets fire them , not at election time , but when they show bad judgement or just contempt for us , the people . they get paid way to much, and some for doing a poor job .others are just going thru. the motions and picking up a paycheck, along with a hell,va pention plan and a very good Med. Plan that we the United States People can,t have ,and we pay for theres .If we screwed up as much as these people have over the years . we wouldn,t be employable anywhere .why do we tolerate this. Is politics that important to us. Oh by the way has become about money, and not merits as a leader .Why do we pay people less intelligent than we are to rule over us. Why do we fight for other people causes, or other countries Problems when we can,t solve our own. Why do we send men & women off to die for Corp. Greed and to line the deep pockets of corrupt leaders .Why do we let law enforcement violate our rights in this country. Why do we allow our children to be educated in a system that someday means to enslave them. Why did we allow our Gov. to become so powerfull , that it has no respect for its citizens anymore . And Why do we have a Constitution that is just a piece of paper .That the politicans think is there own personal playground .Why do we have courts that are ruled by the parties in office at the time, that have become political them selves .Why do we think that politics is going to fix all our problems .When they as leaders made bad Judgements on our behalf , and went along with the status Quo, and didn,t stand up for the people they represent. THese and alot more ? need to asked and answered. One big ? is when as a nation are we going to get back to the persuit of Happiness and liberty. And when are we going to build this country back up as a manufacturing leader in the world again . By the way at one time was second to none .If the so called politicans who claim to represent us aren,t going to get down in the dirt , and help us dig out from this . Then i say ignore them fire them , and do it ourselves . It always ends up put on our backs anyway .So why not start now , and stand up as the free nation we claim to be. take Our Gov. back from the Greedy bankers politicans and Corp. thieves . Its time people to make a stand because the revolution is coming , and it may not be peacefull or pretty. Its coming sooner than later, and the big wigs already have thier lifeboats out . We as a nation are going to be stuck with bailing the country out anyways .So we better get ready to make that stand because our Gov. isn,t going to give up its hold on power without a nasty fight .But i know in my heart that the American people will fight to the last man..So what do you say brothers and Sisters of America . Are we all one people or do we let them divide us. and we sit by and watch it all go donw the drain .your thoughts ,anyone who is really concerned about your country . weigh in people let the people of this country know where you stand .Head in the sand or make a stand ..

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  • http://www.youtube.com/profile?user=Stevie68000 Stevie68000

    Real enemy of Greece, Europe & America – Jew

    Goldman Sachs CEO, Lyold Blankfein is Jew

    IMF Deputy CEO, John Lisky is Jew

    Ex IMF CEO, Dominic Strauss is Jew

    World Bank CEO, Robert Zoellick is Jew

    Ex World Bank CEO, James Woolfesen is Jew

    Fed Chairman, Ben Bernanke is Jew

    Ex Fed Chairman, Alan Greenspan is Jew

    Obama Treasury Secretary, Timothy Geithner is Jew

    George Bush Treasury Secretary, Hank Paulson is Jew

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  • Stevie68000

    Real enemy of Greece, Europe & America – Jew

    Goldman Sachs CEO, Lyold Blankfein is Jew

    IMF Deputy CEO, John Lisky is Jew

    Ex IMF CEO, Dominic Strauss is Jew

    World Bank CEO, Robert Zoellick is Jew

    Ex World Bank CEO, James Woolfesen is Jew

    Fed Chairman, Ben Bernanke is Jew

    Ex Fed Chairman, Alan Greenspan is Jew

    Obama Treasury Secretary, Timothy Geithner is Jew

    George Bush Treasury Secretary, Hank Paulson is Jew

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  • flutternut4756

    just so you know… I share these weekly broadcasts with my grand parents, parents, and children. A common kitchen table discussion is now about the ideas coming from congressman Paul, NOT about Obama’s failed policies anymore. When generations can sit and visit about 1 mans views, daily, weekly, and monthly, in a civilized and educated fashion, then I believe we have woke up. There are many more like us out there. We will be voting this year.

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  • http://www.youtube.com/profile?user=SimplyEli SimplyEli

    I have never voted, and never cared frankly. I will be voting this time, for Thomas Jefferson reincarnate.

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