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Republicans Fiscally Irresponsible Act
00:03:16
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| Hello, this is Ron Paul with your weekly update for Monday, June 5th. | |
| Republicans Fiscally Irresponsible Act The political and financial class breathed a sigh of relief when Congress passed the Fiscal Responsibility Act of 2023. | |
| The bill suspends the debt ceiling for two years, thus avoiding the establishment's nightmare of a government default on its debt. | |
| Rather, it allows the government to continue adding trillions of dollars of debt that will be monetized by the Federal Reserve. | |
| Of course, this default will be felt by the people in the form of an inflation tax. | |
| This inflation tax may be the worst of all taxes because it is both hidden and regressive. | |
| Politicians love to point the finger at greedy corporations, labor unions, and even consumers for increasing prices instead of taking responsibility for the legislation they pass that incentivizes the Federal Reserve to create more inflation. | |
| Republican supporters of the bill claim it begins to roll back the excessive spending of the Biden years. | |
| While the bill does rescind $28 billion of unspent COVID funds, it just recycles that money into the fiscal year 2024. | |
| Thus, it does not save taxpayers a dime. | |
| The bill does cap domestic discretionary spending for fiscal year 2024 at $704 billion and spending for fiscal year 2025 at $711 billion. | |
| However, these caps come from a budget whose baseline includes the increased COVID spending. | |
| The bill only cuts spending by 0.1 to 0.2% of gross domestic product over the next two years, assuming Congress does not reverse the cuts. | |
| Of course, it makes no attempts to actually cut spending, much less eradicate any illegitimate and unconstitutional government agencies, cabinet departments, or programs. | |
| Even though defense is the third largest item in the budget behind Social Security, Medicare, and the interest on the national debt, our annual military budget alone is more than the combined budgets of the next 10 biggest spending countries. | |
| The Fiscal Responsibility Act doesn't take a penny away from the military budget. | |
| Instead, it matches President Biden's request for a 3.2% increase. | |
| This increase comes despite the fact that the Pentagon has never complied with the law requiring it to pass an audit. | |
| Biden's military budget is the largest in the United States history and probably world history. | |
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Dollar's Reserve Status At Risk
00:01:27
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| Deep state Republicans like South Carolina Senator Lindsey Graham never met a war he didn't love. | |
| Graham and his allies threatened to block passage of the bill unless the military spending was increased and more taxpayer money and Ukraine-aided Russian lives wasted in a Ukraine-Russian conflict. | |
| Hawks alienate current and potential allies with their hyper-interventionist policies. | |
| This, along with the increasing national debt, is leading to increased challenges to the U.S. dollar status as the world's reserve currency. | |
| The dollar status is the only reason Congress has been able to run up such a huge deficit without causing a major economic crisis. | |
| The Fiscal Responsibility Act will result in increased government spending, debt, and deficits. | |
| It will also further erode the value of the United States dollar, thus making it more likely that the U.S. dollar will lose its World Reserve currency status sooner rather than later. | |
| The Fiscal Responsibility Act is to fiscal responsibility as the Affordable Care Act is to affordable health care and as the Patriot Act is to true patriotism. | |