Government Spending Is The Problem! Abolish The IRS & The Fed!
The U.S. has the largest government spending problem of any government in history - over $31 trillion in debt (just for starters). Playing around with tax policy may work politically, but it will not solve the spending problem. Will America end the empire and bring the troops home? Will it curtail the massive welfare state for corporations & individuals? Will The Fed be shut down so that it can't print dollars and destroy their value? The spending problem will not be fixed if the answer to any of those questions is 'No.'
Hello, everybody, and thank you for tuning in to the Liberty Report.
With us today is Chris Rossini, our co-host.
Chris, good to see you today.
Great to see you, Dr. Paul.
Very good.
We're going to be talking about taxes and spending and money, and we have an answer to all this.
That's the magic of it.
Our only problem is nobody's listening in Washington.
They don't want to hear our message because there is an answer.
It's not difficult.
It would help everybody and it wouldn't invade anybody's freedom.
It would be moral.
It would be following the Constitution.
But that's blasé.
Who wants to talk about that kind of stuff?
But anyway, before we start, I want to mention something about gold, which I mention quite frequently.
Gold was the commodity and the money that got me interested in politics many years ago because in the 1960s it was predicted by free market economists that the Bretton Woods Agreement was a fraud and we couldn't afford it and we would have to declare a bankruptcy.
And of course that did happen in 1971.
But I've been following it very closely and it's also one of the main reasons that I do partnership with Birch Gold because they're in the business of people who want to use gold in protection of their assets.
And we have done this quite a few months now and we're very pleased with the association.
And if you want to get some more information from Birch Gold, you can get it for free.
Just go to Ron 989898.
You probably could even remember that one.
So that'll get you more information from Birch Gold.
And you know, today was a special day, not exactly exciting for the people who think tomorrow gold is going to be $14,000.
But the statistics came out and they were fudged, they were rigged, and it was implied that everything is hucky-dory and the markets are recovering and interest rates are going to go up.
And so the reaction was that gold really got hit.
But that to me is temporary because the long-term significance is what I care about because that tells you a better picture.
And that is gold goes up in the dollar price.
Gold doesn't actually go up.
The dollar goes down.
And the dollar goes down because spending is out of control.
And we'll, in a little bit, we're going to be talking about taxes and the pretense on how to solve our problems with taxes.
But that is an important thing, and it is predictable, but it isn't going to happen tomorrow or the next day.
Gold is sharply down right now, but there could be an announcement or there'll be a discovery that some of those numbers they gave us were sort of fudging it and they were mickey mouse around with the numbers, which they do all the time.
All governments have done that.
But even the people who know they're doing that still might respond by saying yes, but the majority of the people are going to say, this means that interest rates are going up.
This is going to help the dollar and hurt the gold.
So there are the reactions.
But that's the way the market works.
But people should look at the long term.
If they're looking for protection, you have to look long term.
And since I started my answers, they got initiated in the monetary issue.
It was $35 an ounce.
Now look where it is.
And it's going to continue unless you want to disagree with us here at the Liberty Report and say, I think you guys are wrong.
The government's under control.
We have Biden there.
He's president.
And now we have a new speaker and they're going to cut spending and they're going to balance the budget.
And therefore, they'll shrink the size of government.
And we won't need to have protection about excessive government.
Well, I don't believe that.
I don't think anybody in the country believes it.
On the short run, they'll have a lot of different beliefs, and they have to play the game.
But anyway, if you're interested in following up and getting a little bit more information, free information from Birch, just go Ron 989898.
And Chris, we want to talk about this because Washington knows about it because the people know about the problems we have.
The deficit.
Everybody knows the national debt now is $31, $32 trillion.
It just goes on and on.
And it's frequently, it's probably every year they come up with a new scheme, especially when you have a new administration.
In the House, we have a new administration.
We have a different way of approaching this mess and the debt.
And so they have made these proposals.
There's a big argument going on, which has been getting on for years.
Oh, we need tax reform.
But they don't take our suggestion on tax reform.
They say, oh, should it be a fair tax?
We'll just tax everything you buy.
It might be 10, 20, 30%.
Who knows what it'll end up being?
But it's just a technique that if we change the way we collect the money, it won't, you know, the people will accept it.
We'll make it less painful.
Even if it were less painful, I don't think, I think it's almost a negative.
That means they'd collect more money and they'd do more mischief and interfere with us and get involved in another war.
So it's good that there are some restraints outside the political system.
And others have predicted, you know, have pushed for other types of taxes and some, you know, like the flat tax, solving the problem.
But we want to talk today about what's going on.
And Chris is an expert on this.
And let me tell you, he's an expert because he doesn't like the IRS and he doesn't like the Federal Reserve.
Chris.
I don't know.
Expert is a bad word these days, Dr. Paul.
Yeah, you know, I'll give the Republicans some credit.
Abolishing the IRS, I mean, who doesn't want that?
Great idea.
The only thing is, you know, we know the Republicans.
It's a shell game.
They'll just switch around how they get the money out of you.
Because the big issues are: are they going to end the empire?
That is the biggest drain on our country by far.
Are they going to bring the troops home, shut the bases?
No, they're not.
Are they going to end all the welfare schemes and the cronyism with corporations and individuals and all the welfare?
No, they are not.
Are they going to end the Fed?
Or is the Fed just going to be able to print money?
They're not going to end the Fed.
So, you know, this is a shell game.
It's like the guys on the streets with the cups that they're just, they're, they're shuffling them around and you're supposed to get, it's, you know, they're going to get the money out of us somehow.
So we're going to end up going nowhere if the Fed is just going to print the money and we're just going to suffer from the inflation and pay the way we're paying at the stores now.
Direct taxation is not the only game in town, unfortunately.
Government has many ways that they can extract from us.
But like I said, it's good to float that idea out there about abolishing the IRS.
That is a good idea.
That's only one part of the puzzle.
Right.
You know, I think one of the problems that the country has, the politicians have, is they don't want to admit a very important factor.
We're broke.
The country is bankrupt.
Any business would have gone to chapter 10 or whatever it is a long time ago because we're broke.
But a government, especially if you can print the reserve currency in the world, you get away with this political murder in the sense you can print, print, print, and keep it going for a long time.
And we've had, you know, the reserve currency in the world.
So we deal with the bankruptcies differently.
But this was known in the 60s, and that's what the Austrian economists were saying.
This can't work because we're printing too much money, even though in 33 FDR already started the ball rolling in that direction by taking the gold away from the people.
And we could even own the gold between 33 and up to 75.
So that was a form of bankruptcy and preparing for continuous spending.
So then when it was realized that the Bretton Woods was out of control, even though we had the gold and we had the army and we had everything and we had the wealth and we were reserve, had the reserve currency, we could promise anything and run up deaths and the deficits don't matter.
And they still believe that to a degree or they wouldn't do that.
If they realized how dangerous this was, they'd have to be criminals to continue to do that.
Some people would argue, well, they are criminals and they keep spending.
So by 1971, there had to be another declaration because the only thing that was convertible was by the foreigners who held dollars.
We promise you take our dollars and use our dollars and we'll guarantee it at $35 an ounce.
Well, after a few years, the Austrian economists came back and said, it's not going to work.
Bretton Woods is not going to work.
And sure enough, that's when another bankruptcy was declared, and we wouldn't even give the foreigners their money back.
So we broke our promises.
It's amazing that we got away with it.
But we had the reserve currency, we had the military might.
We already had a lot of wealth, and the people wanted to believe in it.
It was serving the interests of most of the countries that were using the dollar.
But right now, what we're witnessing is the ending of that era.
And now they're talking about how's this bankruptcy going to go?
And that's why these debates are going on.
What are we going to cut in the Congress?
New economists is going to cut.
Oh, we can't do it.
But we have to pay the bills.
So what we want to do is we'll have a gimmick.
We'll have a fair tax.
I'm for a fair tax, and that'll come when you get rid of the IRF.
But the fair tax, the sales tax.
And nobody knows how it would work.
And a lot of good conservatives believe in a fair tax.
But it's not the problem.
And some say, well, if we just charge everybody a certain tax and it's all equal, that's a difficult task, too, about finding it.
It might say, well, everybody has to pay 22%.
Well, that might be a lot of money.
How are you going to collect 22% flat tax from behalf of the people who don't even pay taxes now anyway?
So there's a big problem.
And I think the problem is we're bankrupt.
Nobody wants to admit it.
They don't want to say the Federal Reserve has a lot to do with this.
And they want to pass it by.
But I think as soon as you spend money in Washington, it's a tax, one way or the other, because the money is spent.
And where are they going to get the money to pay the bills?
Where are they going to get the money?
Well, they get it by taxing income tax.
And they have sales taxes.
They have all kinds of taxes.
And there's never enough.
And then they have to borrow money.
So they go out in the market.
The Treasury prints Treasury bills and banknotes.
And they go out and collect money.
People will loan the money to the government.
Government's supposed to be very secure.
And you buy government debt.
And then that finally ends.
And then the government has to buy it.
And that's what QE was all about.
QE was buying up the bonds and mortgage bonds and all these things because we still had the reserve currency of the world.
And that was tiding us over with the bankruptcy.
But the bankruptcy is there.
They don't want to talk about the spending that needs to be cut.
And they're not going to talk about, you know, really seriously curtailing the power and authority of the Federal Reserve.
Chris?
Yeah, very good, Dr. Paul.
You know, when these tax proposals come out, I pay attention to the Democrats.
It's the same thing, the politics of envy.
Right away they go, for they're worried about the rich, the rich this, the rich, that.
You know the but here's the thing.
And but you know, for the Democrats and leftists out there, the people that make the laws are rich.
They're some of the richest people in our country.
Even when they go in with nothing, they come out rich because rich people lobby them.
You know they make sure that there's loopholes.
They make sure that there's.
You know that the laws will benefit them.
Nobody likes to be robbed, not rich or poor.
But the rich have more influence.
Like if I was to go to Washington now and try to lobby somebody, I have nothing to offer them.
You know, if the ceo of Boeing goes in he's, he has plenty to offer.
So you know, nobody wants to be robbed by the government.
So to think that government is a tool to rob the rich and that's why i've heard this my entire life and i'm sure i'm going to hear it the rest of my life you know people they, they think that government is there to go soak the rich.
It's not going to do that, it's not even what it's made for.
And what ends up happening is they end up passing a law that tax the Rich law and then the poor guy pays the bill for it.
But it sounds great, tax the rich law and that's how it works.
So in the end, taxes need to be lowered across the board for all of us rich, poor.
Just lower the tax.
The government has to stop spending so much.
Stop spending what they don't have.
That's how you get out of this mess.
But you know the politics of envy sells and that's why they do it very, very good.
You know, I?
Uh tend to use this every once in a while because if we all have to live in a certain age and I think we live in the age of deceit there's a little bit of lying goes on, always with government, but there's a lot of lying going on now.
And the monetary system, our foreign policy, the welfare state just a lot of lying.
Sometimes they even lie on their resumes.
You know, I want to be a congressman and they'll.
They'll tell a little fib here and there, and some of them will tell lies when they take the oath of office.
That's the lie that really bugs me.
They all take the oath of office, but 98 percent of everything spent in government could be argued.
Where's the authority?
It really isn't everything there.
The uh constant wars uh, should be declared.
They're not.
The welfare state is not authorized in the constitution.
Anyway, they keep doing this.
But uh, the the other word is thrown around with the elections and what they're going to do.
And now they're saying, well, if you don't raise the national debt, you know, raise the national debt makes it legal, Or something.
And that becomes a political football, and it goes back and forth.
And so the scare tactics have to come up.
More lies, make the lies bigger.
You know what?
The government's going to default.
The Social Security checks won't come.
They're not going to honor Treasury.
They're going to pay them.
But the deceit and the lying is they're going to pay it off with something worth a lot less than they got from you.
Government's Role in Deception00:08:16
And that is the inflation, the deliberate debasement of the currency.
So the default is there.
Somebody said, is the default government's not going to pay their bills?
They do it all the time.
Every household rights now suffering a consequence because they're tightening their belt and they don't have as much money.
They're using up their savings account.
If they would have to pay that, they might cut spending or something.
But no, what they do is the government keeps doing this, and it's a tax.
So when they print money, devalue the currency, and default on the value of the money, then the real debt goes down.
So if you double the money supply and the debt shrinks to half, which doesn't work that way.
But we're in the process of always increasing the supply of money, devaluing the currency, it is a default because the people who want to be frugal and save money, they get cheated and the government default.
One little sad thing that bothers me is I was raised when you worked for whatever you could get, and there were times when I'd mow a lawn for 35 cents and that sort of thing.
Well, we always saved the money and we could watch it going up 5, 10, 15 cents here and there.
But it was a lesson.
But now, you know, if you have kids or grandkids and you say, here, I want to give you $5 here, put it in a bank, and then you tell them, you know, this is the way you save, and this is the way you have something in 10 years or pay for your college.
That would be a fraudulent lie because it doesn't work that way.
It's a cheat, but it's a tax.
Inflation is a tax, and we ought to call it a tax.
We should forget about sales taxes and flat taxes and excise taxes and all that gimmickry that goes on.
The tax is spending, and the people want the spending because they still vote for the spending.
Matter of fact, it's a threat.
Oh, he might cut the Social Security back, and they'll get hysterical about it.
But what if they keep the inflation going?
What if the Social Security check loses 30% next year, which is a possibility?
I mean, that's the deceit.
This is the age of deceit.
So the trickier you can get how one party can deceive better than the other party, it seems like they get advantages from that.
But they're not up front.
And I say the most important thing is they don't believe that they should follow their oath of office and obey the Constitution.
Chris.
Excellent, Dr. Paul.
I'll finish up.
Yeah, nothing will change here until the role of government, you know, people wise up.
And unfortunately, it's probably going to happen when the government's bankrupt, and then you'll have no choice but to wise up because it's not going to be able to help you anymore.
Its role is to protect our liberty.
You know, pursue your own happiness.
You know, we all have different things that make us each happy.
As long as it doesn't harm others, you don't take their stuff, and you don't hurt them.
And the government's role is to protect against that.
But we've gone so far from that that it's, you know, this is a new idea for most people today.
So we have a very bad moral and philosophical problem that we have to solve, and it's going to take time and bankruptcy to solve it.
You know, because today people see government as a tool, and it is a tool, but it's a tool for what we, you know, I just described it should be.
But they use it as a tool to rob and force other people to their own advantage.
And people go into groups and do this for me, do this for me.
Oftentimes, they contradict themselves.
People on the left, they're against the billionaires of big corporations, but at the same time, they will mandate laws that make big farmer rich, military industrial complex rich.
So they're contradicting themselves.
They'll say they're pro-worker, pro-worker, unless you don't go get a shot from the government, and then you're out on the street.
So, you know, once government is this violent tool that you wield, eventually it's going to be used against you.
So that's the problem we face.
You know, we have to change the role of government back to, you know, they had a good idea when this country started.
It would be a good idea to go back to something similar.
Very good.
You know, I mentioned the issue of distraction.
Governments do a lot of things on a pretense of what's happening and how they're going to solve this problem.
And for the initial promise or something, they might get away with it.
But eventually the people wake up and they know it's a fib and they know there's a big, big problem there.
But this great debate on the taxes, when I was in Washington, I never supported one of the different varieties just because of what I've been talking about.
Because I didn't support the tax, the sales tax or the flat tax.
And somebody would say, well, what if it made it a little bit easier for people to pay their taxes and people sort of liked it?
Collecting tax revenue became easier.
Well, I think that would be the worst thing to happen.
That's not going to happen.
You can't fool the people that much.
But say it did.
Say it was less painful to pay your taxes.
Wouldn't that be a good way that we could keep doing all this?
Yes.
But when they spend the money, it's another tax.
They take it from you.
That's a tax.
Then they spend it.
And they hire 87,000 pure bureaucrats to pester us so they collect more money.
It's just a distraction from it.
And they want to deceive the people into believing it.
So it's a distraction from the tax issue is a distraction from the spending.
They should be talking about the spending.
Some of them do, and some of them are serious, and some of them outright think it's a joke.
You know, the ones on the far left, the woke people, they don't talk of a danger of spending.
And also, the Federal Reserve policy, although there's a few more people talking about that than they did 20 or 30 years ago, and they'll continue to because it's going to be the issue, and they'll have to do something.
And that's when we lose the reserve currency status and somebody replaces the dollar as a reserve currency, the Federal Reserve is going to be less instrumental around the world.
So I think the tax issue is a distraction not only from the spending and from the Fed policy, but it's a distraction from the real issue.
And that is the issue of the principles of liberty.
And that's what made our country great.
It's a moral principle.
It's a constitutional principle.
It's a good economic principle.
I don't know why we don't do better in presenting our cause and doing better at the polls other than the fact that we have to sort of run against Santa Claus.
You mean we wouldn't get this for free?
Well, nothing is for free.
It's just you pay for it.
So, this is why it's an opportunity.
It's horrible what we're going through.
But this is a time to say that, well, if you're having trouble paying your bills and you're using up your savings and you can't go on vacation, and all those problems are going to get worse, no matter what the market says today or tomorrow, the next day, the overhaul scheme of things, ever really for a hundred years, since the progressive era, you know, in the educational system, the medical system, and certainly in the political system, and our foreign policy, our foreign policy change.
So now we have noticed with our programming that we see more support of people taking the position that what in thunder are we doing in Ukraine and worrying about the borders between Ukraine and Russia.
Attitude Shifts Matter00:02:13
They've been doing that for a long time.
And they said, you know, wonder why they're not thinking about the border between Mexico and the United States.
And all of a sudden, people say, you know, that's right.
Why aren't there?
Why aren't they doing that?
And why do we have all these problems?
So eventually, you know, and that's the attitude that changed during the war against the people over COVID.
I mean, it was so destructive, the lockdown.
But even now, there's people wanting to put them back on again because they're losing power.
That gimmick was there just to get political power.
But no, the American people and the mothers who went to the school board meeting, this is enough.
And the schools and the trash that they teach in our government schools, it will wake up the parents.
And that's what we need.
We need them to be active.
It will work, but it won't work with 10 people going to the school board meeting.
You have to let it happen.
And a few of them have already run for school board and local offices.
And if you look at the strategy of Soros, you might be able to even learn a lesson.
He's an ultra-billionaire, but he's also an ultra-world government person, a globalist.
And he knows how to spend his political money, the lower-level offices.
And he goes in and he gets people in the Justice Department and local enforcement departments and local judgeships.
And I think that's what happens when people say, Oh, this is too big a deal.
I can't go to Washington and lobby.
Well, you don't have to go to Washington.
You can go to a city council meeting.
You can go to the school board meeting.
You can just go out the door.
You can write an editorial.
There's lots of things that we can do.
We need more people awake.
Numbers matter.
Ideas have consequences.
Good ideas have good consequences.
And that is why I'm enthusiastic about the whole principle.
If an idea's time has come, it can't be stopped with authoritarian.
And that's what we must do.
We have to be persuasive and present something in a very positive way, and that's liberty.
I want to thank everybody for tuning in today to the Liberty Report.