Ron Paul On "Debt Ceiling Drama" "We Need To Stop Allowing Secretive Banking Cartels To Endlessly Enslave Us"

Tyler Durden's picture

The barrage of political statements on the debt ceiling is reaching a crescendo. Following Eric Cantor, here is Ron Paul.

Debt Ceiling Drama

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.