Deficit Reduction/Debt Celling-Ron Paul

Unemployment Rate at 9.8%

The Federal Reserve's dual mandate has not created more jobs for the U.S. and policy makers are not helping the cause.  Its my personal opinion that congress is wrong to want to tax higher rates to those who make more money especially in this fragile economy.  In doing this we are sending a message that we the Government punish job creators and those willing to take large risks to create businesses.  You can argue that those who make over 250,000 may be better off than those who make less but in the long run is 250,000 dollars a year going to have the same purchasing power ten years from now?  Soon at this current rate 250,000 will someday be around the middle class average income, assuming we have a middle class in the future.

Here is interesting article by Peter Schiff economist and CEO of Euro Pacific Capital

Fewer Jobs and More Stimulus

Emergency Overnight Loans made by the Federal Reserve after 2008

Just how bad were some of the Financial Institutions suffering during 2008 to 2009.  Well after the 600 billion dollar bailout the Fed also announced that it had made a special loan program available from 2008 to 2009 in hopes of preventing another financial collapse from any investment bank during that time. This special overnight loan program allowed banks to receive large and I mean large amounts of emergency loans from the Federal Reserve.  Of course the banks would take the loans with the notion they would pay back the Fed plus a minuscule amount of added interest.  It turns out that with this loan program the Fed made over 9 trillion dollars in overnight loans and that is just scary number and truly shows how fragile are banking system got in 2008.

Here is the article from CNN Money describing who received what amount of loan and how many loans were processed. 

CNN Money Reports Fed Overnight Loans Program

Government Plans to Cut back on More Government Jobs Where does Unemployment Stand

Click the link BloomBerg News to read more.

BloomBerg Article on Government Job Cuts

Don't Raise the Debt Ceiling! by Ron Paul

As of November 7th, the total U.S. public debt outstanding reached an astonishing $13.7 trillion. This means that although Congress just raised the debt ceiling to $14.3 trillion back in February, the new Congress will face another debt ceiling vote almost immediately next year. Otherwise, the Treasury will not be able to continue issuing debt to fund government operations.

The upcoming vote will provide an interesting litmus test for the new Republican congressional majority, especially those new members closely identified with Tea Party voters. The debt ceiling law, passed in 1917, enables Congress to place a statutory cap on the total amount of government debt rather than having to approve each individual Treasury bond offering. It also, however, forces Congress into an open and presumably somewhat shameful vote to approve more borrowing.

If the new Congress gives in to establishment pressure and media alarmism about “shutting down the government” by voting to increase the debt ceiling once again, you will know that the status quo has prevailed. You will know that Congress, despite the rhetoric of the midterm elections, is doing business as usual. You will know that the simple notion of balancing the budget, by limiting federal spending to federal revenue, remains a shallow and laughable campaign platitude.  -For more of the article click on the link below...

November 30, 2010

Dr. Ron Paul is a Republican member of Congress from Texas.

Don't Raise the Debt Ceiling! by Ron Paul

Who likes to Take Your Money?!

Why does American Media Measure Economic Growth with Shopping for the Holidays

Once again the American Media such as NBC and MSNBC are showing "economic growth" in numerous videos of Black Friday shoppers and eager spenders this weekend.  Unfortunately to often is the idea that the economy is coming around being reflected as a result of gift shopping and endless buying.  But this is not economic growth and wealth is not being created.  The American people are simply buying items that are not manufactured or made in the U.S.  

Countries like China are happy to continue making products for us to buy but jobs are not being created for Americans in this process.  This definitely doesn’t encourage savings either and many Americans have very little to spend to begin with.  Most buyers are using credit cards and simply buying things they don’t need.  And those who are using real money may only have it because they are no longer paying a house mortgage because we know the financials have not recovered or simply relying on unemployment subsidies to fund useless purchases. Not to mention many Black Friday shoppers are not buying gifts for others but simply for themselves hoping to receive a good deal?

 I’m not discouraging buying gifts for the holidays or even spending in general but how many flat screen t.v’s, snuggie’s, and ipods does one household need.  Americans need to save money and slow down on credit borrowing.  Through savings maybe the U.S. can began to create real wealth and lead to Return of the Entrepreneur Kings.