Ron Paul Exposes The Deficit "Plan" Lies: "Cuts Are Illusory, Not From Current Amounts Spent But From Projected Spending Increases"

Tyler Durden's picture

Ron Paul slams it right out of the ballpark.

When a Cut is Not a Cut

One might think that the recent drama over the debt ceiling involves one side wanting to increase or maintain spending with the other side wanting to drastically cut spending, but that is far from the truth.  In spite of the rhetoric being thrown around, the real debate is over how much government spending will increase. 

No plan under serious consideration cuts spending in the way you and I think about it.  Instead, the "cuts" being discussed are illusory, and are not cuts from current amounts being spent, but cuts in projected spending increases.  This is akin to a family "saving" $100,000 in expenses by deciding not to buy a Lamborghini, and instead getting a fully loaded Mercedes, when really their budget dictates that they need to stick with their perfectly serviceable Honda.  But this is the type of math Washington uses to mask the incriminating truth about their unrepentant plundering of the American people.

The truth is that frightening rhetoric about default and full faith and credit of the United States is being carelessly thrown around to ram through a bigger budget than ever, in spite of stagnant revenues.  If your family's income did not change year over year, would it be wise financial management to accelerate spending so you would feel richer?  That is what our government is doing, with one side merely suggesting a different list of purchases than the other.

In reality, bringing our fiscal house into order is not that complicated or excruciatingly painful at all.  If we simply kept spending at current levels, by their definition of "cuts" that would save nearly $400 billion in the next few years, versus the $25 billion the Budget Control Act claims to "cut".  It would only take us 5 years to "cut" $1 trillion, in Washington math, just by holding the line on spending.  That is hardly austere or catastrophic.

A balanced budget is similarly simple and within reach if Washington had just a tiny amount of fiscal common sense.  Our revenues currently stand at approximately $2.2 trillion a year and are likely to remain stagnant as the recession continues.  Our outlays are $3.7 trillion and projected to grow every year.  Yet we only have to go back to 2004 for federal outlays of $2.2 trillion, and the government was far from small that year.  If we simply returned to that year's spending levels, which would hardly be austere, we would have a balanced budget right now.  If we held the line on spending, and the economy actually did grow as estimated, the budget would balance on its own by 2015 with no cuts whatsoever.

We pay 35 percent more for our military today than we did 10 years ago, for the exact same capabilities.  The same could be said for the rest of the government.  Why has our budget doubled in 10 years?  This country doesn't have double the population, or double the land area, or double anything that would require the federal government to grow by such an obscene amount.  

In Washington terms, a simple freeze in spending would be a much bigger "cut" than any plan being discussed.  If politicians simply cannot bear to implement actual cuts to actual spending, just freezing the budget would give the economy the best chance to catch its breath, recover and grow.

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anynonmous's picture


say it ain't so Barack, Boener, Reid & McConnell, say it ain't so

Mike2756's picture

Wow, like they never pulled this before. I suppose there's a surplus in there if they just look hard enough.

Herd Redirection Committee's picture

You tell 'em, Ron!  Yep, it is amazing what they achieve just through accounting gimmicks and definition changes (SS cuts are due to change in definition) alone!

America has a leadership vaccuum, and honestly, I don't know if it will be resolved with anything short of complete disintegration.  Sometimes you look around and the return to Feudalism is just getting closer and closer.

Check out the latest from the Capital Research Institute "The Sad Truth Regarding America's Deficit Reduction":

"Although Congress has not yet passed the ‘debt deal’ it certainly has all the looks of a done deal about it.  So lets cut to the chase.  America has a debt problem.  This year America spent $1.5 trillion more than it collected in revenues.  That’s $1500 billion.  This year alone.  America’s total debt, as we have all had drilled into us these last few days, is currently about $14 trillion dollars.  So what did Congress decide the solution to this problem should be?   On the one hand they kicked and screamed at each other, like siblings fighting over who gets the remote control.  But on the other hand, it is clear in hindsight the politicians have no appreciation for how serious the problems actually are (and they will only get worse, until they are seriously addressed).   The plan before them today allows for the debt ceiling to be raised (as if the debt ceiling is the problem, not the debt) and deficits to be reduced.  Yes, you read that right, deficits will not be eliminated, they will be reduced.

So that means…. The total National Debt will continue to increase. So the same group of people who vote wage increases for themselves have now decided that Social Security should be calculated in a new way.  A new way that shortchanges SS recipients, and doesn’t accurately track inflation, but hey, the government will save money.

The real kicker is in the spending cuts.  Very little, if any, has to occur straight away.  Almost all the cuts are ‘yet to be determined’ and occur at some point in the future..."

Buck Johnson's picture

Spot on, spot on.  When this whole game comes to an end, it will destroy peoples belief in the govt. for a long time.  Also I agree with you also about Feudilism, I see it coming and it will be a nasty little surprise for alot of us.

wanklord's picture

By appealing to tons of bullshit about the Constitution and other patriotic crap, Congressman Ron Paul is able to seduce his brute and ignorant constituency while doing nothing in Congress (a clever way to make easy money). Besides that, Americans are a bunch of stupid animals easy to manipulate and subdue. The sooner the US economy collapses the better, so these brutes will finally learn NOT to live beyond their means.

The Third Man's picture

Stick to wanking. You seem to be pretty good at that.

NotApplicable's picture

Speaking of ignorant, could you at least expand your vocabulary a bit? A little variety can go a long ways toward furthering your trolling effectively. Otherwise, you're going to fail to attract the arrow-clickers and simply vanish in obscurity.

If nothing else, at least have the decency to find other sources to cut and paste from.


pupton's picture

A down arrow is just not rewarding enough....FUCK YOU Wanker...Ahh, that's a little better.


sgorem's picture

I don't usually respond to such jibberish bullshit, BUT not today. You fucking dildo-headed dipshit! YOU and your like minded minion morons are the reason WE, the "enlightened patriots", are fighting in one way or another, to take back OUR country. YOU are just a pile of shit in the middle of the road to avoid. RON PAUL for PRESIDENT! He may not be perfect, but he's a better Man than what the fuck WE'VE got now.......asshole....................

Birddog's picture

Wanker, your still sulking that John Mccain lost...get over it.

Bay Area Guy's picture

Wanklord, it seems to me you're criticizing Mr. Paul on one hand by saying he doesn't accomplish anything, but then you're complaining that Americans should finally learn not to live beyond their means.  By pointing out that the cuts being proposed are, in a lot of cases, illusory, isn't Mr. Paul trying to educate the very public you are maligning?  There are certainly some things that Mr. Paul stands for which I do not agree, but, by and large, on economic matters, he seems to very much incorporate my personal philosophy.  Of course, since I haev some level of agreement with him, he'll never be elected to the White House.  However, unless political leaders like Mr. Paul continue to be voices of sanity in terms of what's going on, the "brutes" will only hear what the likes of MSNBC and Fox News want them to hear.

Also, what's wrong with appealing to the Constitution and being patriotic?  Last I read, the elites haven't shredded the last vestiges of the Constitution (yet), so it is still the law of the land.

I do think you are right in that my countrymen are, for the most part, easy to manipulate.  The vast majority are more interested in Jersey Shore or American Idol then they are in the economic future of the nation.

FEDbuster's picture

Wanklord, I understand and agree with most of what you are saying.  It's really too late for anyone to do anything other than delay the collapse.  I will vote for Ron Paul as always in the primary (I won't send him any $$), and he will lose.  Then he will retire (already announced that).  He fought like Don Quixote during his long political career, talking a lot and accomplished little.  Our Country has never been run by politicians or the people, TPTB will decide our fate after extracting as much wealth as they can.  I am saddened that my teenage boys will have to live in Mexico North rather than the USA (illegals here in AZ are moving back to Mexico for a better life).  It sure sucks.

Hasten the Collapse, OBAMA 2012

StychoKiller's picture

Would donating around $15 to Ron Paul's campaign really bust your budget?

Money talks, bullsh!t walks!

slaughterer's picture

Ron Paul's criticism has been circulated widely by Paul Ryan for weeks now.  The fraudulent way the "cuts" are calculated has always been in the Reid bill from the very beginning.  The rating agencies will ignore it.  BTFD, even now. 

slaughterer's picture

Intraday low of 1274.73 has been set on S&P.  Rally into the close.  For those of us lucky enough to see the low and buy the SPY 127 calls at 1275, $$$ into the close.  Kleptocracy 1 : Democracy 0.

ZH is correct in its analysis, but one must trade the market's cynical inversion of ZH's analysis.  In its own way, market is even more negative than ZH. 

slaughterer's picture

1:00 PM scorecard.

S&P -1.07%

Silver -.70%

AAPL + 1.12%

Momo high P/E net.bubble stocks like TZOO + 3.88%

Kleptocracy 1: Democracy 0

slaughterer's picture

1:22 pm.

Silver -1.57%  Uh oh.

fuu's picture

Are you the new Robo? His posts are at least funny.

Mr Lennon Hendrix's picture

I want to see it bounce off of support at $38.50.

anynonmous's picture

meanwhile Ryan (Scott Brown in drag) is saying the Obama plan will pass

slaughterer's picture

Yup, gonna pass.  Even a fierce critic like Ryan confirms it.  For better or worse.  And the good thing is: rinse and repeat right before Thanksgiving on a nice low-volume, high-algo day when the super committee has its deadline. 

Sudden Debt's picture



Haole's picture

Walmart is rolling back the prices of Vaseline and blindfolds...

docj's picture

Just lie-back and think of England.

Manthong's picture

Thank God government subsidies for the ball gags aren't scheduled to be cut until 2018.

user2011's picture

All I want to know is how much raise these lawmakers are going to get this year !!    I know the whole proposal thing is dog and pony show anyway.

dick cheneys ghost's picture

Tom Coburn said the same thing on the senate floor........The Bankers are still in charge.........put them all in GITMO.........

johnconnor's picture

Ron Paul for president, too bad the bankster lobby, the insdustrial military complex and those stupid americans who believe in flying unicorns and being positive won't give this man a chance...

HoofHearted's picture

Surely we ZHers aren't the only ones with any sense in this country...oh wait, American Idol is a top show and everyone actually cared about Casey Anthony and Amy Winehouse. Shit! Can we all move to Texas and just secede? Maybe Alaska??? Panama? Any other suggestions?

narapoiddyslexia's picture

How about a peaceful Million Gun March on Washington, as an expression of our 2nd Amendment rights? And of the fact that we are really pissed at those assholes. All of 'em.

Husk-Erzulie's picture

Are you kidding?  Rachael Maddows' head would explode.  Nope, too messy.

Commander Cody's picture

I liked your other avatar better.  Obama is god.

JimBowie1958's picture

Hmm, you actually introduce yet another incentive to march!

Heck, I'll clean up her mess if it need be.

pizzgums's picture

whatever makes you think we want you or anyone else to come to Texas?

please don't.  all these new people come here bringing their bad ideas that didn't work in the places they left behind.  it's like human locusts, producing nothing but always looking for a new place to be fed.

stay where you are and fix that.

DCFusor's picture

 Though I'm not a Texan, but rather living in SW VA -- I share the sentiment in spades.  We country folk are very very sick of having city pollution and bad laws required for bad people pushed on us.  We're sick of exporting our resources and taxes and getting crap in return.  We're sick of concentrating power and "we know what's best for you" statements.  No, you don't even know what's best for the current me, much less all the different places I alone have occupied in life.


Sure, in DC or NYC if you swing your arm, you'll probably hit and hurt someone.  Where I live you're unlikely to, saying the very least.  Why do I have to submit to laws appropriate for you, but not me?  Why do I have to pay the costs for this sick system set up by such people?

Interestingly, I also have the same take (I think) on immigration.  We have mexican illegals up here -- to even find this place to do backbreaking orchard work, they have to be pretty enterprising, and frankly, they are no trouble to us.  But what is sick is when immigrants overflow a place, and as you said, try to re-implement what didn't work where they came from -- which is the very reason they came here, to get away from that.  And the Mexcans aren't the first to be guilty of that one.  Chinatown anyone?  And plenty other examples.

You want to come here and share my dream, well, goddammit, share it, learn the language, the laws, work, pay taxes -- you can't leave some of those out and be OK with me.  If you only came here for the better street corners to sell drugs and shoot one another on - stay home and do it there.  And don't blame me for making a few guns available, I'm not the source of the huge majority of them - they are using arms dealers....not gun stores.  That's only the very small time.

Rhodin's picture

And don't blame me for making a few guns available, I'm not the source of the huge majority of them - they are using arms dealers....not gun stores.

The ATF is the major arms supplier to the Mexican drug cartels.  This keeps the "American origin" high when Mexican authorities seize drug cartel weapons, and it helps justify higher ATF budgets.

RiverRoad's picture

HoofHearted @12:47:  Ask Tyler for that terrific Expatriation manual he shared with us last year.

baby_BLYTHE's picture

Ron Paul 'The High Tide 2012'. Spread the word with this great 1-min presentation (Should be easy enough on the sheeple's digestive system)

The Limerick King's picture

American greatness has passed

The last thirty years were a blast

But then GREED bought the votes

With its fresh-printed notes

And wealth based on debt doesn`t last

lieutenantjohnchard's picture

of course. only rubes are unaware of the tricks. that's why you only hear about a $1.5 trillion budget deficit because the truth of $5.5 trillion in budget deficits using gaap accounting is quite too much to bear.

Founders Keeper's picture

One green ping for RP from me please.


papaswamp's picture

Unfortunately no one will listen to Ron Paul except those that already listen to him. At least he gives us insight into congress....something I don't hear others doing.

RiverRoad's picture

papaswamp @12:40:  Those people asleep at the wheel are crashing their cars right about now and waking up in the ER.  Maybe now they'll listen....

sabra1's picture

hey oBLAHma! you will NOT be re-elected! do you understand? i'm canadian, but i will enter the US illegally and vote you out! U R FINISHED PUNK!!!! thank the lord tyler removes all IP addresses! 

DosZap's picture


Well that's great, but in case you had not noticed the Congress passed a law making your ISP,in and out logs all to be recorded, along with every CC# you use, Debit card, etc,etc, and sites we visit..........................and are required to retain for one year.

So that means, all your and our info is being stored..INDEFINITELY.

ISP providers automatically store your emails................even before this legislation was passed.