By Ron Paul:

Liberty always loses in the 11th hour.

As the year draws to an end, America faces yet another Congressionally-manufactured crisis which will likely end in yet another 11th hour compromise, resulting in more government growth touted as “saving” the economy.  While cutting taxes is always a good idea, setting up a ticking time bomb with a sunset provision, as the Bush tax cuts did, is terrible policy.  Congress should have just cut taxes.  But instead, we have a crisis that is sure not to go to waste. 


From Paul.House.Gov

The hysteria surrounding the January 1 deadline for the Budget Control Act’s spending cuts and expiration of the Bush tax cuts seems all too familiar.  Even the language is predictably hysterical: if government reduces planned spending increases by even a tiny amount, the economy will go over a “fiscal cliff.”  This is nonsense.

This rhetoric is based on the belief that government spending sustains the economy, when in fact the opposite is true.  Every dollar the government spends is a dollar taken from consumers, businessmen, or investors. Reducing spending can only help the economy by putting money back in the hands of ordinary Americans.  Politicians who claim to support the free market and the lower and middle-class should take this to heart.

The reality is, however, that neither Republicans nor Democrats are serious about cutting spending. Even though U.S. military spending is exponentially larger than any other country and is notorious for its inefficiency and cost overruns, Republicans cannot seem to stomach even one penny of cuts to the Pentagon’s budget.  This is unfortunate because this is the easiest, most obvious place to start getting spending under control.  The military-industrial complex and unconstitutional overseas military interventions should be the first place we look for budget cuts.

Similarly, Democrats are digging in their heels on not cutting any welfare or entitlement spending and instead propose to fix the deficit by raising taxes on the rich, even though the U.S. Government already has a progressive tax code and the rich already pay more than their fair share. Furthermore, these higher taxes would fall on small business owners, investors, and entrepreneurs—in other words, the source of economic growth and new jobs!

The truth is that there is no excuse for government spending being as high as it is, nor for taxes being as high as they are.  Even the God of the Old Testament only asked for 10% as a tithe and offering, and Americans revolted against the King of England for taxes that amounted to less than five percent.  Yet so many people today complain about “loopholes” for the rich that lower their actual tax rate to “only” 13% in some instances.  Even that is a criminal amount to pay for a wasteful, abusive, unconstitutional government.

We are indeed headed to a fiscal cliff and have been long before this latest hysteria cropped up.  But it is not cuts to spending or reduced government “revenue” that will send us over the cliff, it is continued government spending that will.  Until the federal government limits itself to its Constitutionally-mandated role, spending and taxation will remain out of control.

Look for a “bipartisan” compromise in late December, with Republicans giving in to tax increases and settling for phony spending cuts that actually grow government, and Democrats caving on defense cuts in exchange for tax increases.  This is how the government has always grown: both sides will sacrifice their pro-liberty, small government stances in certain areas in order to grow the government where they prefer.

Liberty always loses in the 11th hour.

    • That’s the way that RP has been for as long as I can remember him.  No smoke or mirrors, no B$, and no smoke blown up anyone’s skirt.

  1. Ah – the folly of the .gov giveaways.  Once they stop, the recipients will not accept this.
    Funny, since all the analysts say this will help the country in the long run.  If America can not accept even this small measure of austerity, then how can we ever hope to get the country’s financial house in order?

    • We cannot but everyone sure enjoys talking about doing it.  Seems to be the national sport on TV these days.  :-/

      Because we cannot control our urges to be all things to everyone, we WILL spend ourselves into utter destitution.  Trillions for the grasping hands of the unproductive and pennies worth of “cuts”, which are more often than not merely slight reductions in the rate of spending increases.

      Bad times are coming and we have all seen the signs of it.  We cannot know WHEN it will fall upon us but it is likely to be sooner rather than later.  Everyone has their best guess for this and mine is sometime in 2014-15.  Got silver?


    • I think we have long passed the point of no return. We are bankrupt and no amount of tweeking is going to change that fact! Default or hyperinflation are the only two options for the Federal government! I think a choise has been made and it is the latter!

    • @RocketsRedGlare

      I don’t buy the ‘bankrupt’ meme because I don’t buy the phony numbers of billions and trillions. Those numbers are as etherial as the ‘value’ of the banknotes they relate to. The equitable TRUTH is that the American banknote has a REAL PHYSICAL expression as ten gram copper pieces. Now, I did the math and even omitting ‘scrap’, all the banknotes can be replaced from existing stores in warehouses. The advantage of doing so, ends the complex compounding interest on the float of currency and money again returns to a RATIONAL inter-relationship to all other goods-at-market. Moreover, since the financial superstructure of wages, prices and accounts stays undisturbed, no social dislocation ever has a chance to arise.

  2. So the chances are this will go down to the wire before a milquetoast decision is finally made.  For those of us with short memories, could Doc, Sirocco or a reader here with some time on their hands – perform a little research and tell us what PM’s did the last time this sort of thing happened – the ‘Debt Ceiling’ debate of a year or so ago?

    Did PM’s rise or fall in the runup to the deadline?

    What did they do after a decision was finally agreed upon?


  3. My research is increasingly confirming that liability to substantiate ‘obligations’ uniquely circumscribed under the limited jurisdiction of the ‘United States’ can’t Lawfully reach citizens in and of the original jurisdictions of their States. What separates them from ‘federal citizens’ (see Black’s L.D. pg. 422) is the status of Permanent Lawful Domicile duly filed on the Public Record in conjunction with complete, exhaustive denial of claim to all federal compensatory ‘benefits’.  The fact is that the State legislatures have all become subsidiary agencies under exclusive ‘central’ government jurisdiction. If enough people in each county of each State revert their legal Persons back into originally constituted jurisdiction and re-populate all the constitutional offices, the ‘federal’ back-slapping, glad-handing pretenders, occupying un-authorized duplicate offices can be deposed.

  4. All this talk about the Fiscal Cliff is just obfuscatory claptrap spouted by the two sides that occupy the same counterfeit Susan B Anthony $1 coin  Neither side cares what happens. They might get some heat from the 50% who are mildly concerned about the debt but want the funds to continue flowing.  They might get some squeals of outrage from the other 50% who are mildly concerned that the funds won’t continue
     to flow, debt be damned.  But 95% of the politicians have no concern except getting reelected, thinking that a debate about $150 billion in the federal non-budget will be meaningful to 100% of the Sheeple. 
    With $230 trillion in mandated and entitlements firmly and inextricable welded to the Fisc in the next 30 years, this budgetary tempest in a teapot will mean and accomplish nothing. Business as usual has continued unabated since Reagen winked the first $100 billion deficit while cutting taxes.  Ever since then things have gone down hill with nothing more than push me pull you arguments that accomplished diddly squat except to push off the day of reckoning.   Time is still not nigh.

    • They know that cutting the true “welfare” benefits to the sheeple will result in an uprising and civil war. Cutting corporate welfare will kill their chances of being elected again. Rock and a hard place and business as usual.

    • It’s not just the Susan B Anthony 1$ coins that are counterfeits. The whole US dollar itself except for the gold and silver American Eagles is now a counterfeit currency in the USA according to the US Constitution. The US dollar in general isn’t made and backed by gold and silver anymore.

  5. I don’t see them doing anything substantial with the Budget. They will go back and forth until the last minute and come up with something that will still ruin the Country then blame each other. Only when it crashes will the Sheepee wake up and hopefully get the Country back on track again. In the meantime I’ll Keep Stacking evertime I can.

    • “They will go back and forth until the last minute and come up with something that will still ruin the Country then blame each other.”

      I sure hope that they enjoy playing that game as they are walking to their gallows.  AFTER they have royally f****d up the country, there will be ZERO patience remaining for any more of their B$. 

    • I kinda wish that this system could already just collapse so that people won’t be suffering from inflation anymore and so that we can prove to everyone that we were right all along and they were wrong especially when they were mocking about our financial advices.

  6. as long as the private fed loans our currency into existance, nothing congress or obama willhelp. under these monetary conditions  the deficit must increase in exses of the interest charged the year before. because it doesnt , there is never enough currency to pay all the debt. if it did, inflation would be 30%+. when we pay any taxes, this money’s ability to pay debt is destroyed thus adding to the amount of defaults. remember if all debts were paid there would be no currency in circulation and we would still owe all the interest ever charged minus defaults. the amount of money stolen by the banks can be calculated by adding together all the interest ever charged  as there was never any currency created to pay it. going back to a purley metalic currency isnt the ansewr because most of the metal has been hoarded by those who can afford it, it doesnt currenlty exist in small enough denomination for effective comerse, and im not willing to let my fellow countryman starve because they were to stupid to see the writing on the wall. change will be forced on us by external forces with the global rejection of the dollar. hyperinflation is not a %, it is a phycological event within a population. when people relize that their dollars dont buy what they need, they spen all they have at once. the problem is, and the vilocity chart shows this, is that people are tapped out and without extending more credit, have no money to spend. the real danger is when the dollars from overseas come flooding back in during a deflation of real property, we will wake up homeless in our own country. the ansewr, in my opion, is a debt jubilee, issuence of a new treasrury note  debt free, allow gold and silver to float independenly as it and other tangible commodties will be the only thing foreign nations will accept for their exports. we must end fractional reserve banking and eliminate the charging of interest at all levels. as interest is charged one of two things or a combination of both must occur, both detrimental to society. either there must be as much currecy added to the system as the total interest charged and orthe amount of defaults will equal the amount of total interest charged. one leads to inflation and the other leads to property confiscation the trck to acceptence of the new currency is that it is not exportable or if it is can only be used to purchase our exports. foreign nationals may not own property,stocks or any other thing inside of the country. it will also be accepted as it will be good for the purchase of land as the federal government may no longer own property, hence the fire sale. we will never see human advancement as long as rent seeking is legal. we dont need an electric grid, we dont need municple utility slavery. clean nongmo food should be cheap and readily available. how much would food cost if farmers wernt debt slaves to the morgue and monsatan. women could stay at home and raise their children and men would work far less if there was no mortgage interest on top of an inflated currency. people would work with their hands producing, not pushing paper in perpetual debt. if we reestablished property rights and ended the property tax people would have the freedom tofind their niche and produce for the good of all. i onow this sounds utopian and pie in the sky but we have been plagued by debt as long as man has been here. the scret of charging interest on loans to enslave your fellow man has been held by a small number of families and perpetuated thoughout time. we must break these shackels, demand a debt free national currency andreintroduce gold and silver as competing currency. in the mean time individual actions must center around an expansion of currency for the little folk by defaultint on all loans as all loans are fraudulent and a refusal to pay any taxes as this only wastes our hard earned money we exchange for our labor. the new currency can be spent into existance by paying to replace our broken infrustructure, paying retirerees the benifits they were promised in lump sum. as gold and silver will trade unadultetated, that will keep the money expansion in check to aviod inflation. investments can be made without interest being added. investment in farm land can pay dividends in food or investment in a new type of generator could be made with dividenrs paid in free electricity. the paridigm man has operated under in the age of piecies has been about artifical scarcity, rent seeking, war and disease. as the age of aquarious comes, will we graduate to a system that allows those of us who can, produce for the betterment of all. if there were only three men in the world, a farmer, a merchant, and a money lender. there are only three pieces of silver as money. the farmer and the merchant each wanted a loan and were charged a  half a piece of silver as interest. either one or both will default as there  are only two pieces of silver not three. therefore the money lender takes profit and collateral property he didnt lift a finger to build or contribute. expand this example to our current system and its no wonder we see the poverty and wealth transfer that we do. i dont have to out run the wolf, i need only to out run you. how about we work together and kill the wolf. none of my ideas are st in stone and welcome contructive critic

    • well i hammer jacked the math on my example and cant edit it o n my stupid phone so ill try it again. there are only 2 pieces of silver in the world, the farmer and the merchant each take a one piece of silver loan at 50% interest somone must default

    • @YouTubeTruckTalk180

      If you want to COMPLETELY circumvent ALL of Congress’ un-Constitutional ‘social-engineering’ impositions and deprivations, come join my new FaceBook page, ‘American Dream’. Everything you’re longing to see corrected is possible to achieve. 

    • That’s true! That’s why we all buy physical precious metals. We all mainly bought physical gold and silver to be protected against inflation.

  7. @PatFields: I don’t know the number of copper or even zink pennies that have been minted but I want to do some math. If the $ (FRN) has lost over 97% of its value and a copper penny is really worth 3 cents then a FRN is only worth a copper penny! Why doesn’t the Treasury Dept. call in all the stinking pennies. Surely there are billions of them or maybe a lot more than that. While they are at it ask for the nickels too. Give tose to our debtors when the price of metal explodes and pay off THEIR debts. Just saying.

  8. The best way to cut spending is to stop oversea wars. The US military should be back in their homeland to defend the USA’s borders which actually help the country more than declaring useless wars overseas. I remember when taxes were 10% in the USA when I went there in July 2010!

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