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Ron Paul: Every indication Congress will spend until the system collapses

On Oct. 9, Congressman Ron Paul spoke out regarding the issue of America’s dependency upon the government, primarily in lieu of Mitt Romney’s recent comments regarding the 47% of Americans who now receive some form of government benefit. In his beliefs, Congressman Paul sees the government, and in particular Congress, unwilling to address this growing dependency, and in fact, is giving every indication that they intend to spend and create debt until the entire system collapses.

Some argue that Social Security and Medicare benefits are a right because people pay into these programs their whole lives, or that we need a government safety net in place for people who fall on hard times. However, this all becomes a moot point when the funds people depend on become worthless due to government default or rampant inflation.

This is less an issue of dignity or dependence on government, and more about the deceitfulness of government promises.

The Fed recently announced that it plans to keep interest rates near zero and keep buying near worthless assets from banks indefinitely. This enables Congress to spend without having to take deficits or the debt seriously and there is every indication they intend to spend with impunity until the system collapses. – Paul.house.gov

The sad truth regarding politics and the American people in the 21st century, is that votes are now intrinsically tied to how much government officials are willing to give in free benefits to citizens to keep them elected and in office. What was given originally as a warning on the matter of government welfare by the 18th century historian Alexander Frasier Tyler, has today become a reality as over half of the country now requires, and in some cases demands, benefits as a right, not as a safety net.

A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over lousy fiscal policy, always followed by a dictatorship. – Alexander Frasier Tyler, in an essay titled Cycles of Democracy written in 1770

Besides Congress, it is also apparent that neither presidential candidate has the will to address this growing issue, as neither candidate during their Oct. 3 debate mentioned the Federal Reserve, its failed monetary policies, or what to do with the 100 million Americans now receiving some form of government benefit.

The national debt is now greater than our annual GDP, and our yearly deficit runs more than 40% of the entire budget. A little more than a month ago, Congress quickly passed a new hike to the debt ceiling, and the promises made during the 2010 election season to slow down deficit spending were left unfulfilled.

With less than a month before the 2012 elections, Ron Paul is spending his final months in office sharing the same message to the American people that he has proclaimed for the past 30 years. Unless the government addresses its fiscal responsibility, and provides jobs, not welfare to the citizens of this nation, then there will be no alternative but a complete collapse of a monetary system that was once hailed as the greatest in the history of the world.

For more on finance and economics, you can follow Ken Schortgen Jr on Twitter, and listen to the weekly economic roundup segment of the Angel Clark radio show from 6-7p.m. est on Friday evenings.



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