Liberty on Tap since 1984
I previously tried to show the Paul Supporters how they should frame Paul's [censored] ideas about foreign policy in the context of the end result, but they were more interested in causing fights and attaching blame. As I and other 'Paul is at the bottom of my list' voters have said that we will vote for Paul if he wins, I'll try again to explain why.
In summary: The financial situation of the US will prevent it from funding the US military at levels that can support numerous overseas deployments and bases. Although the money spent on Defense is not the reason, there are too many people dependent on entitlements and they will keep enough socialist politicians in power to prevent Defense spending if entitlements are cut.
The US is currently involved in a bloodless civil war between Socialists and Capitalists. It is being fought in Schools, Courts, and Politics. The main casualty of this war up to this point is the US financial situation. The Socialists have been able to convince enough people to vote themselves Government benefits, and the Capitalists have held on to enough people that pay taxes and don't like it when they go up. The end result is that Politicians have evolved into being Pro-benefits and Anti-Tax.
This has created a populace that either doesn't care how much is spent as long as their taxes don't go up, or doesn't care how high taxes go as long as they get their benefits. Each group is blissfully ignorant of the damage that is done by the thing they don't care about. Out of control spending would not occur if EVERYONE's taxes went up to pay for it. There would be the proper balance between what people are willing to pay in taxes and the amount they get in benefits.
Instead, the Politicians found a way to keep themselves in power: Borrow the difference between what one group wants in benefits and the other is willing to pay for. This has led to a deficit that is more than half of revenue, a President that thinks money is in infinite supply at a constant value and that he can morally take it from anyone that has more than he believes they need, and a congress that can't bring itself to cut spending to the point where they start calling a reduction in a planned increase a cut.
Over the years, going back all the way to post WWII, the US has accumulated 15 Trillion in debt. Currently, due to the Socialist take over of US government from 2006 to 2010, we have a deficit of 1.3 Trillion dollars, revenue of 2.2 Trillion dollars, and a debt of 15 Trillion. In 2010, we spent 1.98 Trillion on SS, Medicaid, Medicare and other entitlements. We also spent 196 Billion on interest payments on the debt. Add this up and you get ~2.2 Trillion dollars. This means that if you reduce the federal government budget to nothing but entitlements and interest on the debt, you still won’t have a surplus.
The US has spent ~1.3 Trillion on the Iraq and Afghanistan wars from ~2001 till now. That’s less than 130 Billion per year. In 2010 alone, we spent 707 Billion on SS, 724 Billion on Federal Medicare / Medicaid, and 553 Billion on federal unemployment and the other entitlements. The spending on the wars is coming to an end. Obamacare spending has not yet started.
No matter who is President, the budget will never be cut by 1.3 Trillion. If by some miracle the politicians come to their senses and eliminate the 1.3 Trillion dollar deficit in one year by a combination of cuts and new taxes, the people that have their benefits cut will elect a new politician to re-instate them, and the people paying the new taxes will either make less money, or elect a new politician to eliminate them.
GDP cannot grow fast enough to erase the deficit. In the same way that high taxes cause some to decide that what’s left over in profit is not worth the effort to create, low taxes cause some to decide they don’t have to work anymore. This is one of the reasons that no matter what the tax rates, GDP adjusts so that the amount that can be taken out of it remains between 18 and 22%.
For the deficit to be eliminated by growth, spending must be frozen (never happen) and GDP would need to grow by double digits for a few decades (never happen).
So the next President, even if he is elected to a second term, will be forced to accept large cuts in defense spending which will force a reduction in overseas forces, and prevent the US from engaging in conflicts.
Therefore, as far as the end result of his foreign policy and not because of it’s flawed philosophy, a Ron Paul presidency can’t be any worse than any other Presidency, EXCEPT FOR OBAMA’s SECOND.
Pray to God that the other free countries in the world start spending more on their own defense and don’t fall to murderous dictators and genocidal regimes.
Comment
Comment by Ronald A. Lau on December 27, 2011 at 8:09am One last musing:
It has been said that America can only be destroyed from the inside. If that is true, and I believe it is, then what ever happens on the world stage (barring global nuclear war) can be rectified after the US puts its fiscal house in order, and the socialist/marxist/communist push is defeated for another 50 years.
Comment by Ronald A. Lau on December 23, 2011 at 10:30am I would hope that Paul would get the same education as Obama apparently garnered in his 1st two years. Obama was unmovable as a State and US senator. Then he learned about how Politics work when you are an entire 1/3rd of the government.
I would like to say, I hope I'm wrong. I've been repeating my take on the situation to different places hoping someone can point to the way out of it. But it hasn't happened yet, other than suggestions of what I consider to be Miracles.
What I am getting at, is when there isn't any more money to spend, congress can't really do any more damage. They can't add anything, since that costs money, and they only have ~2.2 Trillion to spend and a 3.5 Trillion budget.
So what are the possibilities for the US budget when the US can't borrow money? As far as I can tell, they are either: Print more money or Cut 1.3 Trillion.
Cutting 1.3 Trillion can happen two ways: Congress agrees what to cut and the President signs it or Congress over-rides his veto.
Congress agreeing to 1.3 Trillion in cuts? Not going to happen
Congress agreeing to 1.3 Trillion in cuts enough to over-ride any President's veto? Not going to happen
So assuming the next President doesn't Print Money (I'm not sure who, if any elected politician, controls this), the budget process gets stalled, and we come to the same situation we had when the current congress and Obama came to the subject of the debt ceiling, where the President decides what bills to pay and which ones not to.
Which bills would the next President pay when he only has 2.2 Trillion and 3.5 Trillion in bills? (Assuming Obamacare is repealed). Well, it's not like he has much choice. Entitlements and interest on the debt are just about 2.2 Trillion.
If the next President is Obama, what does he cut? Everything but entitlements? Hard to imagine, but he may. What would President Paul cut? All of Medicare/Medicaid and all of the EPA, Dept Agriculture, etc? Congress would re-instate them in a veto proof vote, either right then or the next congress would be voted in to do so. This brings us back to the fact that Congress can't do it if they don't have the money, and can't borrow it.
The US is going to come to this point. It is un-avoidable. It is what engineers would call Path Independent. No President can avoid it, no congress will ever agree to anything that will avoid it. Start printing money now and the lenders stop lending or the cost of borrowing skyrockets and we reach this point even faster.
Now that the next President tried to cut things by not paying for them, and the then or following congress has come to the realization that they can't make 2.2 Trillion pay for 3.5 Trillion in spending, they will find the person that can make the treasury Print Money. If he says no, they will replace him with someone who says 'Yes'.
Here is where the President comes into play. Hyper-inflation causes the value of the dollar to drop to 1/4 of its current value. The quantity of dollars associated with revenues goes up to ~6.6 Trillion. The budget and interest on the debt stay at a quantity of 3.5 Trillion and there is a Surplus of 3.1 Trillion. The Congress can't sit by and watch the value of Entitlements decrease by 75%, so they increase them. They have to come to an agreement, then the President has to sign it. The President can stop them from eating up the surplus before it is used to pay off the 15 Trillion in debt (which at 3.1 Trillion, will take 5 years). So even if the President only gets 1 term, he might be able to force the debt down to say 8 Trillion.
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