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Ron Paul Rages On the Debt Ceiling Deal: DC Wins, America Loses

Tyler Durden's picture




 

Authored by Ron Paul via The Free Foundation,

Washington, DC, Wall Street, and central bankers around the world rejoiced this week as Congress came to an agreement to end the government shutdown and lift the debt ceiling. The latest spending-and-debt deal was negotiated by Congressional leaders behind closed doors, and was rushed through Congress before most members had time to read it. Now that the bill is passed, we can see that it is a victory for the political class and special interests, but a defeat for the American people.

The debt ceiling deal increases spending above the levels set by the “sequester.” The sequester cuts were minuscule, and in many cases used the old DC trick of calling reductions in planned spending increases a cut. But even minuscule and phony cuts are unacceptable to the bipartisan welfare-warfare spending collation. The bill also does nothing to protect the American people from the Obamacare disaster.

As is common in bills drafted in secret and rushed into law, this bill contains special deals for certain powerful politicians. The bill even has a provision authorizing continued military aid to opponents of the Ugandan “Lord’s Resistance Army,” which was the subject of the widely-viewed “Kony 2012” YouTube videos. Most of these unrelated provisions did not come to public attention until after the bill was passed and signed into law.

Members of Congress and the public were told the debt ceiling increase was necessary to prevent a government default and an economic crisis. This manufactured fear supposedly justified voting on legislation without allowing members time to even read it, much less to remove the special deals or even debate the wisdom of intervening in overseas military conflicts because of a YouTube video.

Congress should have ignored the hysterics. A failure to increase government’s borrowing authority would not lead to a default any more that an individual's failure to get a credit card limit increase in would mean they would have to declare bankruptcy. Instead, the failure of either an individual or a government to obtain new borrowing authority would force the individual or the government to live within their means, and may even force them to finally reduce their spending. Most people would say it is irresponsible to give a spendthrift, debit-ridden individual a credit increase. Why then is it responsible to give an irresponsible spendthrift government an increase in borrowing authority?

Congress surrendered more power to the president in this bill. Instead of setting a new debt ceiling, it simply “suspended” the debt ceiling until February. This gives the administration a blank check to run up as much debt as it pleases from now until February 7th. Congress can “disapprove” the debt ceiling suspension, but only if it passes a resolution of disapproval by a two-thirds majority. How long before Congress totally abdicates its constitutional authority over spending by allowing the Treasury permanent and unlimited authority to borrow money without seeking Congressional approval?

Instead of seriously addressing the spending crisis, most in Congress would rather engage in last-minute brinksmanship and backroom deals instead of taking the necessary action to reign in spending. Congress will only take serious steps to reduce spending when either a critical mass of Americans pressures it to cut spending, or when investors and foreign countries stop buying US government debt. Hopefully, those of us who understand sound economics can convince enough of our fellow citizens to pressure Congress to make serious spending cuts before Congress’s reckless actions cause a total economic collapse.

 

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Wed, 10/23/2013 - 18:17 | 4084332 Peter Pan
Peter Pan's picture

The debt ceiling and the overall debt level is just an indication of how stupid the rest of the world is to be putting up with it.

Wed, 10/23/2013 - 18:32 | 4084378 Millivanilli
Millivanilli's picture

Ron always stops short of, The tree of liberty must be watered with the blood of tyrants and patriots from time to time.

 

I wonder why?

Wed, 10/23/2013 - 18:39 | 4084399 DCFusor
DCFusor's picture

Surely your question is a rhetorical one.  You have to know why already.

Wed, 10/23/2013 - 20:51 | 4084724 Chuck Walla
Chuck Walla's picture

Is there still a free shit army? Then you can forget any real pressure.
FORWARD SOVIET SPENDING!

Thu, 10/24/2013 - 05:03 | 4085389 Tapeworm
Tapeworm's picture

Spell it out for me.

 I gave a pile ($2600+) to RP in the past two pro wrestling shows and RP quit both times with a heap of cash to hire his family.

 Now they call me at any hour on Sundays.

Wed, 10/23/2013 - 18:40 | 4084402 A Lunatic
A Lunatic's picture

Kinda goes without saying in some circles.......

Wed, 10/23/2013 - 19:21 | 4084509 Peter Pan
Peter Pan's picture

Ron Paul knows full well that it will probably get to that one day, but that in the meantime there is no point in making the statement while the populace is still largely immersed in an entertainment induced stupor and backed up by food stamps.

Thu, 10/24/2013 - 01:12 | 4085205 Otrader
Otrader's picture

RP has long been a follower of Sun Tzu - The Art of War

1. If your enemy is superior, evade him.
2. If angry, irritate him.
3. If equally matched, fight.
4. If not, split and reevaluate.

Actually, I have no idea if he is or not.   But, if he was, he is probably thinking #4 :-)

 

Wed, 10/23/2013 - 18:33 | 4084380 NotApplicable
NotApplicable's picture

Stupid... or powerless? I bet your wallet contains just as much fiat as the next idiot.

Wed, 10/23/2013 - 18:44 | 4084409 BrocilyBeef
BrocilyBeef's picture

Just goes to show how the entire world loses due to the American People allowing our government not to follow its rules, The Constitution.

We should scrap probably every law, department, and regulation written since its signing and review the amendments not part of the Bill of Rights.

Then, let us come up with some Federal laws that can fit on NO more than five 8.5x11" sheets of paper, double-spaced, single-sided, "Times New Roman", and size 14. :)

Thu, 10/24/2013 - 08:39 | 4085647 Grinder74
Grinder74's picture

Say, this Ron Paul guy have da smart.  He should make run for President.

Wed, 10/23/2013 - 18:18 | 4084335 nmewn
nmewn's picture

Holding the central government hostage, an anarchist, a bomb throwin terrst...or sumpin ;-)

Wed, 10/23/2013 - 18:34 | 4084384 sgorem
sgorem's picture

ah... the smell of a fucking revolution in the morning air, priceless..................

Wed, 10/23/2013 - 18:50 | 4084436 nmewn
nmewn's picture

I think so.

It will be a welcome distraction from the hard pivoting, inept community organizing twerking, the draining of the public coffers and all around hooliganism, we've been impatiently watching.

Wed, 10/23/2013 - 18:19 | 4084336 zaphod
zaphod's picture

The fact that Ron could not get any more than 10% of republicans to support him, to me shows that the republican party is failed and not just the country as a whole.

Ron is the only pol who has made any sense over the past years.

Wed, 10/23/2013 - 18:32 | 4084377 kaiserhoff
kaiserhoff's picture

He got zero support from the Dims.  Libertarians always do.

It was the Lame Stream New York media who treated Dr Paul badly, ridiculed his program, and ignored any rational discussion about government tyranny.

Wed, 10/23/2013 - 18:39 | 4084394 zaphod
zaphod's picture

Fully agree. My point is that if less than 10% of the red team support him and 0% of the blue team, then the founding principles of this country are lost. Revolution will never come, the blue team has won and the population will take their scraps. It's time to start to develop various plan B's most of which include leaving and setting up a new shop, just as our forefathers did.

Wed, 10/23/2013 - 19:14 | 4084493 Kirk2NCC1701
Kirk2NCC1701's picture

Not to be a Wise Guy, but is that what the vast ghost cities in China are for?  For the Libertarians, who want to "start over*"?

* Start Over - whether by choice or decree.

Wed, 10/23/2013 - 20:19 | 4084649 unrulian
Wed, 10/23/2013 - 22:32 | 4084981 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

we need to start a libertarian city. within the US. a place where taxes are already low, with all the resources we need. a place where we dont have to worry about gun grabbers, where the economy has enough jobs, and to where people would be willing to relocate. probably in texas. a good way to fight this would be to have a city that could act as a stark contrast to the decay, both moral and financial, of the rest of the US. it would probably have to be in texas, which i personally wouldnt have a problem with.

 

also im pretty sure glen beck tried this but fuck that guy. let's all move to ron paul's old district and start our own city upon a hill. then when SHTF we will be surounded by like minded people and (maybe) have a blank slate.

 

this is my first time being optimistic in a while so easy with the downvoting.

Thu, 10/24/2013 - 08:42 | 4085661 Grinder74
Grinder74's picture

All we need is .78 square miles (2.02 km) -- Monaco, smallest country with a coastline.

Thu, 10/24/2013 - 08:54 | 4085699 Grinder74
Grinder74's picture

Who's ready to move to the Free Republic of Navassa Island?!? https://en.wikipedia.org/wiki/Navassa_Island

Wed, 10/23/2013 - 19:24 | 4084515 AnAverageBear
AnAverageBear's picture

10%! I've read here that it only took 2% of the population to beat our first tyrannical government...so what are we waiting for?

Wed, 10/23/2013 - 18:48 | 4084431 NOTaREALmerican
NOTaREALmerican's picture

Re:  He got zero support from the Dims.

The "Libertarians" and "Progressives" say they don't like the Red and Blue Team (respectively) but most of them end up voting for the Red and Blue Team when the elections role round.

People in power-suits impress the dumbasses.   It tough for most human to vote against those who look so worthy of power.

 

Wed, 10/23/2013 - 19:52 | 4084581 DaddyO
DaddyO's picture

If you follow RP at all, you'll know that he has moved his fight to only one team, the progressives.

Forget all you think you know about Red Team/ Blue Team.

In the Matrix it is only about escape/survival...

DaddyO

Wed, 10/23/2013 - 21:06 | 4084767 BrocilyBeef
BrocilyBeef's picture

Rock on! Good luck learning a Progressive though.

It starts with a certain segment of Progressives awakening other Progressives and hopefully it snowballs from there.

I think the number of Progressives that actually understand the effect of the Progressive policies are few. It's just pretty easy to shut reality out,

Wed, 10/23/2013 - 22:07 | 4084923 americanreality
americanreality's picture

Ron Paul got quite a bit of support from dems.  I think he had close to 50/50 split dem/repub support in the Iowa primaries. He appeals to people on both sides.  

Wed, 10/23/2013 - 20:52 | 4084732 Miffed Microbio...
Miffed Microbiologist's picture

RP was the only politician in DC that had honesty, integrity and heart. I was devastated he was dismissed and ridiculed by the MSM. The idiots that showed him the door deserve the government they have now. Unfortunately all will suffer from these free shit army dimwits. It always ends with group punishment.

Miffed;-)

Wed, 10/23/2013 - 21:24 | 4084810 DaddyO
DaddyO's picture

+1

Why is it that the progressives and dimwits try to drive society down to the lowest common denominator?

I was raised and also raised my children to leave things better than you found them, not make a mess and then walk away.

Imagine the stench of the FSA when the wheels come off this biatch and the foodstamps stops flowing, medicine becomes unobtanium and the little beasties we can't see proliferate at exponential rates.

Weeeeeee, what a ride......

DaddyO

Wed, 10/23/2013 - 23:17 | 4085079 Miffed Microbio...
Miffed Microbiologist's picture

Isn't it always so? Every class I alway took had some slow kid that asked a lot of stupid questions and slowed the class down to a crawl. What can you do but doodle in the margins and pray for it to be over?

I've taken many classes over my head because I was in a rush to finish and skipped prerequisites ( I hear now they don't allow that...we had more freedom in college). I just studied a lot harder than the average student and didn't expect the prof to bail me out. In our day we weren't blessed with the free shit brigade and had to live by our wits. A concept few would understand today.

Miffed;-)

Wed, 10/23/2013 - 18:19 | 4084338 Pairadimes
Pairadimes's picture

End the Fed, outlaw fractional reserve banking and return the dollar to a PM standard. Deal with the consequences.

Wed, 10/23/2013 - 19:52 | 4084586 DaddyO
DaddyO's picture

Hopefully in my lifetime!!!

DaddyO

Wed, 10/23/2013 - 18:21 | 4084344 Triple A
Triple A's picture

Too late too prevent a collapse

Wed, 10/23/2013 - 18:58 | 4084401 Kirk2NCC1701
Kirk2NCC1701's picture

"A man's got to know his limitations" - Dirty Harry

At some point, it's time to stop pretend that we're still working on "This Old House", and it's time to "Tear down this wall!" 

Time for the WTC7 wrecking crew and start over,  my dear Dr. Paul.  I'm not saying we need to do any "wrecking", as they are doing a fine mess of it as it is.  We need only cheer them on from a safe distance... "Yeah, baby, pile on that Debt!  Yihaa!" 

Time to create more Fed CONfetti for all sorts of Public works:  Inner City rehab, old bridges, old dams, etc, etc.  Restart that Space Program.  We'll call it "To Infinity & Beyond!"  Dow 30,000. 

QE till the foreign "Investors" turn green, then beet-red and their heads explode.  Yihaa!

/ p.s. Our parents will have their Bonds and 401ks collapse, but that's fine too, because... We won't have to live in the attic or basement of their monster house anymore, now that they're broke, old and need our help.  It's... poetic, it's symmetric.  /s

Wed, 10/23/2013 - 18:21 | 4084345 fonzannoon
Wed, 10/23/2013 - 18:56 | 4084452 Kirk2NCC1701
Kirk2NCC1701's picture

Fonz, unless I'm mistaken, this falls into the "I don't care who makes the laws... as long as I control the currency supply" quote that Dr Paul needs to remember?

Wed, 10/23/2013 - 18:57 | 4084457 kaiserhoff
kaiserhoff's picture

I would really like to disagree, fonz, but we are following the well tread path of Japan.  Looks like this shit could go on for a long time, and the States have odd sources of staying power Japan could never match.

That said, imbalances continue to build.  Real estate values are nuts, the banks are broke, the young are up a shit creek, and Obama care is a slow motion train wreck.  Being early in the market is the same thing as being wrong.  Plenty of us are getting tired of being early.

Wed, 10/23/2013 - 19:08 | 4084474 Kirk2NCC1701
Kirk2NCC1701's picture

I hear that Commercial RE is nuts because the 1%ers with cash or bank-backing are expecting QE to go on, the Dow to go to 20,000 and beyond, and are therefore plowing the confetti fiat from the banks into high-end commercial RE, and doing refi's --> MBS all over.

Residential RE... different story, but the Vulture Capitalists are buzzing overhead, looking for bodies to pick over.

Wed, 10/23/2013 - 19:58 | 4084599 new game
new game's picture

having liquidated my whopping two holdings and in the market; the carcassss has been picked over by round one flippers and inflation is alive and well hitting mid class right where it hurts. but, i will say new shit is always coming on and there is an idiot born to sell to low... waiting patiently for that home with acreage a high vantage and plenty of room for prep storage and sustainablility..

"when ya hit my age every shot counts" I said that...

Wed, 10/23/2013 - 21:38 | 4084835 Harbanger
Harbanger's picture

I was talking to a chinese guy yesterday who just bought some commercial RE. and took on a 900K mortgage, he put down 300K .  I asked him if he was concerned about paying off the loan.  To my surprise he said he's betting on hyperinflation making the 900K mortgage irrelevant.

Wed, 10/23/2013 - 23:59 | 4085132 Miffed Microbio...
Miffed Microbiologist's picture

Whoa, that's some high end gambling! I guess there are more whales in the casino then I realized. They certainly are behind our RE boom in San Diego. Roach Motel for idiots.

Miffed;-)

Wed, 10/23/2013 - 20:16 | 4084645 DeadFred
DeadFred's picture

Nah Fonz, bookmark it and take a gander at it yourself in a year and shake your head. The end is near, you can smell it in the air. 

Wed, 10/23/2013 - 18:34 | 4084383 LongSilverJohn
LongSilverJohn's picture

I loaded up on gold and silver and now just spend my extra time reading Huckleberry Finn (and building my raft) while I wait for the final blowout...

Wed, 10/23/2013 - 18:37 | 4084389 ebworthen
ebworthen's picture

"Washington, DC, Wall Street, and central bankers around the world rejoiced this week..."

Yes they did, and they've had their way since at least 1913 (if not before).

Too late for politics to solve this problem.

Wed, 10/23/2013 - 20:04 | 4084623 new game
new game's picture

new world order is here now. the waiting is over.

Wed, 10/23/2013 - 18:45 | 4084419 Maroon Phoenix
Maroon Phoenix's picture

Why should we tell our congresspeople anything?  We know the name of the game and how to play it -- buy gold, prepare for the worst, and when it all crumbles, we'll be left standing.

Wed, 10/23/2013 - 18:51 | 4084438 NOTaREALmerican
NOTaREALmerican's picture

Re:  we'll be left standing

to BTFD.   Everybody is ready to BTDF.   That's what keeps the system going.  The pathological optimism of humans will increase forever at the rate of 3% (which just happens to be the inflation rate for the last 100 years - the shape-shifting lizard people know what they are doing).

Wed, 10/23/2013 - 19:30 | 4084531 McRocket
McRocket's picture

'Instead of setting a new debt ceiling, it simply “suspended” the debt ceiling until February. This gives the administration a blank check to run up as much debt as it pleases from now until February 7th. Congress can “disapprove” the debt ceiling suspension, but only if it passes a resolution of disapproval by a two-thirds majority.'

Gold anyone?

Wed, 10/23/2013 - 19:33 | 4084540 Dre4dwolf
Dre4dwolf's picture

When the U.S.A. Prints money, it is essentially stealing from the rest of the world.

So

Double down and lets print money and just start out-right buying entire nations, how many trillion do we need to buy england , russia and china? 10 ~ 40 trillion? lets print up some trillion dollar coins made of pewter with Obamas face on it.

 

Reminds me of when we traded beads and junk to the Indians for land.... why not doit again?

Wed, 10/23/2013 - 19:47 | 4084570 lotsoffun
lotsoffun's picture

i think it's fairly simple - but the rest of you will of course grace me with your highly enlightened comments.  and that's always the lots of fun that i seek here.

to put 85 billion in perspective, it's at least 13 nimitz class carriers per month:

The final carrier of the class, USS George H.W. Bush, was designed as a "transition ship" from the Nimitz class to the replacement Gerald R. Ford class. Bush incorporates new technologies including improved propeller and bulbous bow designs, a reduced radar signature and electronic and environmental upgrades.[36][37] As a result, the ship's cost was $6.2 billion, higher than that of the earlier Nimitz-class ships which each cost around $4.5 billion.[38] To lower costs, some new technologies and design features were also incorporated into the USS Ronald Reagan, the previous carrier, including a redesigned island.[39]

so - next month let's spend another 85 billion - and at 20 milllion each - that's at least 4,000 f-16 fighters.

Unit cost F-16A/B: US$14.6 million (1998 dollars)[1]
F-16C/D: US$18.8 million (1998 dollars)[1] Variants

General Dynamics F-16 VISTA   

 

 

 

 

 

i will leave it to you guys to figure out what kind of fire-power the rest of the world owns.  it seems like most 'major powers' are down to one carrier.  US currently has 16.  that's a lot of domination to keep things the way you like.  please correct or edify me.

 

Wed, 10/23/2013 - 20:11 | 4084638 whoopsing
whoopsing's picture

This country, if it dropped everything else, could not produce thirteen carriers a month. Thats how you know its all bullshit

Wed, 10/23/2013 - 20:32 | 4084679 DeadFred
DeadFred's picture

In a world without nukes I would be much more impressed. A first strike from sub based missles against six naval bases plus three or four EMPs and MAD would be the only recourse. Do YOU think Obama would push the button to end the world? More important do the Russians and Chinese believe it.

Edit: in case of war the safest place to be is in the same city as Obama.

Wed, 10/23/2013 - 21:08 | 4084770 chistletoe
chistletoe's picture

easy ...

 

Air craft carriers today still servebasically the same mission that they did in Pearl harbor in 1940 ...

its true that now we have things like the world trade center which did the same thing ....

 

they are not weapons, only decoys .....

Wed, 10/23/2013 - 21:48 | 4084863 nmewn
nmewn's picture

So you're saying, at this rate of spend, in two more years, they will give me an F16A for what they owe me and we'll call it even.

I'll put it to good use ;-)

Wed, 10/23/2013 - 23:35 | 4085100 NeedtoSecede
NeedtoSecede's picture

..the right to keep and bear arms shall not be infringed.

I am more of a fan of the F-15, but would happily have you on my wing in your F-16 Lawn Dart any day of the week nmewn.

Thu, 10/24/2013 - 19:45 | 4088481 lotsoffun
lotsoffun's picture

nmewn - i hope you see this.  i had some pretty good ideas.  so for example - at $85,000 each - that's 1 MILLION porsche carrera's a month.  let's say bennie buys 1 Million carrera's a month for 6 months.  6 million cars.  now - that would really 'stimulate' the economy right?  next up - if he let each of us drive the car (tax payers only, there are a few left) for 3 months - 18 million taxpayers could drive the cars in the first year.  by year 3 - we'd probably have everybody covered.

of course - we could do the same thing with the f-16's on say a 2 hour basis.

or - we could all take a trans-ocean cruise on one of the nimitz thingies.  they really should let us enjoy the money of ours that they have spent :)  !!!

(how about firing off some cruise missiles.  that could be really cool, or i saw a beavis and butthead where they operated a drone.  it was wonderful)

 

Thu, 10/24/2013 - 00:34 | 4085164 El Vaquero
El Vaquero's picture

If the world drops the dollar, we'll have a helluva time paying for the oil that powers all of those support vessels that those carriers rely on.

Wed, 10/23/2013 - 19:56 | 4084597 monad
monad's picture

Any suggestions, or are you just checking for a pulse? 

Wed, 10/23/2013 - 20:05 | 4084624 Flakmeister
Flakmeister's picture

Yawn....

But seriously, DC is broken but there are more constructive ways to fix things than bringing down the world financial system to score ideological brownie points...

Assuming of course that the Tea Party is really interested in fixing thing and not merely lobbing Molotov cocktails...

Wed, 10/23/2013 - 21:19 | 4084799 nmewn
nmewn's picture

lol...doesn't make much sense to lob molotov cocktails around after a ObamaCare nuclear strike now does it? So I'll just watch it all burn down to the ground with all the idiot sycophants inside it, completely stunned at what just transpired.

Enjoy the warmth Flak, its toasty now, it'll be a lot colder soon enough ;-)

Wed, 10/23/2013 - 20:08 | 4084631 new game
new game's picture

bigger they are the harder they fall. calling rome. works til it don't.

just when is the question?

Wed, 10/23/2013 - 20:59 | 4084754 Debt Slave
Debt Slave's picture

One of the reasons Ron can't get any traction in the American political process is because he is against feeding certain parasites in the middle east. Of course he is against feeding ALL foreign parasites, but some parasites are deemed more worthy than others. Conservatards like Hannity have repeatedly skewered him for it.

Face it. Half of the voters are the FSA libtards that love their Obamaphones and other stolen goodies, and the other half are mindless twits who let FOX shills like Hannity, Beck, and Limbaugh tell them what to think.

I gave money to Paul when he ran in 2008. By 2012 it was clearly obvious that he was wasting his time and money, so I kept the checkbook closed. No sense in throwing good money after bad.

America doesn't want freedom. That means responsibility which is a dirty word in this era. Besides, the MSM has a complete lock on the political process, and as long as people let others do their thinking for them or are more than happy to be parasites on others, nothing is ever going to change.

Wed, 10/23/2013 - 21:09 | 4084773 Cabreado
Cabreado's picture

I don't do heroes, but I'm certain that the World is going to miss this man, and most won't even know that they do.

Anosognosia is a great word.

Carry on, Ron Paul.

Thu, 10/24/2013 - 08:00 | 4085564 El_Puerco
El_Puerco's picture

RON PAUL!...Hey!...Where are you?!...

 

W  h  y    n o    y e a r  of  the Cat?... 

 

 

Thu, 10/24/2013 - 08:02 | 4085565 El_Puerco
El_Puerco's picture

 

"Year of the Cat". ..

 

 

Do NOT follow this link or you will be banned from the site!