The Ron Paul Institute for Peace and Prosperity
Subscribe to the Institute View Us on YouTube Follow Us On Twitter Join Us on Facebook Join Us at Google Plus

Latest Posts

Surrendering Liberty: America’s Fatal Freedom Apathy
According to our civic folklore, Americans are more devoted to freedom than any other nationality on earth. But it is increasingly appears that this dogma is a relic of bygone times.

29 January 2015read on...

China Looks West: What Is at Stake in Beijing’s ‘New Silk Road’ Project
Not even two years into what will almost certainly be a ten-year tenure as China’s president, Xi Jinping has already had an impact on China’s foreign policy: standing up for what many Chinese see as their nation’s territorial sovereignty in maritime boundary disputes in the East China Sea and the South China Sea, proposing a “new model of great power relations” to guide relations with the United States, and presiding over the consolidation of what Xi himself calls a “comprehensive strategic partnership” with Russia. But the most consequential diplomatic initiative of Xi’s presidency may turn out to be his calls to create a “New Silk Road Economic Belt” and a “Maritime Silk Road of the 21st Century”: vast infrastructure and investment schemes aimed at expanding China’s economic connections to—and its political influence across—much of Eurasia.

28 January 2015read on...

'Two Percent Inflation' and The Fed's Current Mandate
Over the last 100 years the Fed has had many mandates and policy changes in its pursuit of becoming the chief central economic planner for the United States. Not only has it pursued this utopian dream of planning the US economy and financing every boondoggle conceivable in the welfare/warfare state, it has become the manipulator of the premier world reserve currency.

28 January 2015read on...

Beware the Two Percent!
Why is the Federal Reserve the best friend of the warfare state? Watch Ron Paul lay down the history of this destructive institution...

28 January 2015read on...

New Russia 'Spy' Scandal: US Foreign Policy Goes Retro
Progressives have saddled themselves with a theory of history that sees the "march of progress" as an ever upwardly-bound journey to political perfection: thus the appellation "progressive," as in "things are getting progressively better." Yet history – real history, that is – lacks any such teleological plan or direction. It is characterized, instead, by ups and downs, golden ages and dark ages: the golden age of Greece and Rome was followed by centuries of ignorance and retrogression that we call – not without reason – the Dark Ages.

28 January 2015read on...

After The 'Syriza Shock' - Now Comes The Hard Choice Of Escape Or Merely Re-setting The Terms of Greece’s EU Servitude
We can heartily praise Alexis Tsirpras for calling bull on the destructive puzzle palace economics thrust on his country by the hypocrites and liars who rule from Brussels. And his finance minister designate, economist Yanis Varoufakis, is surely on the right track when he targets the rent-seeking bankers, big businesses and media operators who have plundered the Greek state for decades.

26 January 2015read on...

Beware a New Cold War
The notion of a New Cold War with Russia first arrived in 2008 with the publication of Edward Lucas' book The New Cold War: The Future of Russia and the Threat to the West. It received some attention at the time, but the cold war construct in its title gained little traction until the 2014. Since the Ukraine has been in crisis the phrase "a New Cold War" has become fairly commonplace in the media. Part of the reason for this is that the emotional memory of the Cold War is still strong and 'cold war' remains an easy, ready and convenient trope for media commentators in need of dramatic content. However, we should be concerned with more than rhetorical overreach by writers of headlines, book titles and opinion pieces.

23 January 2015read on...

A Second Even More Unjustifiable Episode of Government Collection of Phone Records
In the rush to sensationalize the Paris terrorist attacks and minimize all other news (for example, even more horrendous terrorist attacks in Nigeria), the American media has conveniently overlooked one major ill effect of the public hysteria it is helping to foment.

23 January 2015read on...

Featured Articles

A Grand Bargain for Liberty?


Ronpaul Tst

As I write this, it appears that the federal government is about to shut down because the House and Senate cannot agree on whether to add language defunding or delaying Obamacare to the “Continuing Resolution”. Despite all the hand-wringing heard in DC, a short-term government shut down (which doesn’t actually shut down the government) will not cause the country to collapse.

And the American people would benefit if Obamacare was defeated or even delayed.

Obamacare saddles the American health care system with new spending and mandates which will raise the price and lower the quality of health care. Denying funds to this program may give Congress time to replace this bill with free-market reforms that put patients and physicians back in charge of health care. Defunding the bill before it becomes implemented can spare the American people from falling under the worst effects of this law.

As heartened as we should be by the fight against Obamacare, we should be equally disheartened by the fact that so few in DC are talking about making real cuts in federal spending. Even fewer are talking about reductions in the most logical place to reduce spending: the military-industrial complex.  The US military budget constitutes almost 50 percent of the total worldwide military spending.  Yet to listen to some in Congress, one would think that America was one canceled multi-million dollar helicopter contract away from being left totally defenseless.

What makes this military spending impossible to justify is that is does not benefit the American people. Instead, by fomenting resentment and hatred among the world population, our costly interventionist foreign policy makes our people less safe. Thus, reducing spending on militarism would not only help balance the budget, but would enhance our security.

Yet both the House and the Senate continuing resolutions not only fail to reduce military spending, they actually authorize $20 billion more in military spending than authorized by the “sequestration” created by the 2011 Budget Control Act.  Most of the supposedly “draconian” sequestration cuts are not even cuts; instead, they are "reductions in the planed rate of spending.” This is where Congress increases spending but by less than originally planned—and yet they claim to cut spending.

Under sequestration, military spending increases by 18 percent instead of by 20 percent over the next ten years. Yet some so-called conservatives are so opposed to these phony cuts in military spending that they would support increased taxes and increased welfare “military” spending. This “grand bargain” would benefit the DC political class and the special interests, but it would be a disaster for the American people.

Instead of grand bargains of increased spending and taxes, those of us who support limited government and free markets should form a coalition with antiwar liberals to reduce spending on both the military industrial complex and domestic welfare programs. Instead of raising taxes on “the rich” we should also work to reduce all corporate subsidies. This “grand bargain” would truly be a win-win for the American people.

Sadly, even if a congressional coalition to cut both warfare and welfare spending was formed, it would be unlikely to carry the day as long as the Federal Reserve is willing to enable Congress’s debt addiction by monetizing the debt. But this cannot last forever. At some point the Fed’s policies will result in hyper-inflation and an economic crisis that will force Congress to reduce spending. Hopefully, the growing number of Americans who are awaking to the dangers of our current path can convince Congress to reduce overseas militarism and begin an orderly drawdown of the welfare state before this crisis occurs.


What are you supporting?
When you join the
Ron Paul Institute
for Peace and Prosperity
You are supporting

News and analysis
like you'll get nowhere else

Brave insight on
foreign policy and civil liberties

A young writer's program
and much more!

Archives