Budget Cuts are Meaningless Without Fed Transparency
by Ron Paul: Liberty
to Ron Paul
on issues surrounding government spending this week as talk of deficits,
the national debt, and the debt limit saturated the airwaves. This
is a positive development. In years past, there was very little
concern over how much was spent here in Washington, how it was spent,
or how much of our gross domestic product was being consumed by
government. That blissful ignorance naturally resulted in decades
of government spending with impunity, bringing us to where we are
today: trillions in debt with astronomical entitlement obligations
that will be impossible to fulfill in the not too distant future.
So it is a good thing that there is so much political pressure now
on our leaders to actually put the brakes on runaway spending.
the most generous estimate of the spending cut passed this week
$38.5 billion is a paltry 3.5% of the $1.05 trillion
in spending through the next 5 months. This hardly makes a dent
in our government's mountain of debt. Even worse than that, the
non-partisan Congressional Budget Office (CBO) stripped away the
accounting sleights of hand and scored it as only $352 million in
cuts, which works out to less than half of one percent of spending.
Still, the tiniest cut is better than the massive increases we have
become accustomed to in federal budgets.
our disastrous wars in Afghanistan and Iraq are not even included
in this budget as they are considered emergency spending. They constitute
$3.3 billion in spending in the same period of time, so they more
than cancel out any small cuts the warmongers may crow about.
I voted against
the legislation funding government for the remainder of this year,
as well as next year's budget because, as in years past, government
spends far too much on unconstitutional programs. In spite of any
rhetoric about fiscal responsibility, a point three percent (0.3%)
cut does not suddenly make the rest of the spending constitutional
or responsible. And, if the American people do not continue to hold
the politicians' feet to the fire, you can be sure we will see massive
spending increases again in the future.
to Congress' spending, many Americans are finally paying attention
to the spending done by unelected banking cronies at the Federal
Reserve. Recently the Fed was forced to reveal some details of loans
given out during the financial crisis of 2008 and they are truly
shocking. Matt Taibbi points out in a recent Rolling Stone article
that two very well-connected Wall Street wives got together and
formed a real estate investment company that garnered $220 million
in so-called "loans" (free money) from the Fed. Compare
this number to the $352 million in spending cuts the CBO says are
in the current budget! A few months later, one of the wives bought
a $13.5 million personal residence with her husband, the CEO of
unaccountable Fed hands out as much or more money this way as our
federal government spends, and yet receives hardly any attention.
This is why I believe transparency of the Fed is a critical step
to regaining control of our financial situation in this country.
We can never get meaningful reforms if all eyes are on the $352
million so-called cuts, and transactions like the $220 million given
to Wall Street cronies are done in the shadows. This is why I have
reintroduced my Audit the Fed bill to this Congress. HR 1207 is
now HR 459 and is essential to true fiscal reform and responsibility.
the Ron Paul File
Paul is a Republican member of Congress from Texas.
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