The US national debt officially topped $20 trillion after Pres. Trump signed a bill temporarily raising the debt ceiling limit for the next three months. With his signature, Trump increased the statutory debt by about $318 billion. That raised the US national debt to $20.16 trillion. The debt has increased about $215 billion from around $19.94 trillion since Trump took office.
Ron Paul says the whole debt ceiling issue raises even more fundamental questions about the role of government.
Of course, the US debt is even higher than $20 trillion when you factor in all of the government’s unfunded liabilities.
Even so, in most circles, talk of the ever upward-spiraling national debt is generally met with yawns. In fact, Trump wants to level the last speed bump slowing the debt by completely eliminating the debt ceiling. Most mainstream pundits and politicos are all for it. As Ron Paul points out in his most recent Liberty Report, governments don’t want any limits on their ability to spend.
They want no limits whatsoever. And I keep thinking, you know, there’s no limit on printing money, so now they don’t want any, even suggested psychological, political limits on spending money.”
Peter Schiff made a similar point in a recent Schiff Report video. Its’ easy to say the debt ceiling doesn’t matter. The federal government managed to run up an unimaginable tab even with the ceiling in place. But Peter argues it has probably at least slowed down unrestrained spending. At least Congress has to consider some limits from time to time.
We have $20 trillion of debt, and we’ve got all that debt with a debt ceiling. Can you imagine how much more debt we would have racked up if we didn’t have a ceiling?”
Peter said debt ceiling or not, there is a limit to what the federal government can borrow. At some point, lenders will just stop lending. That will force the government to turn to the Fed and its printing press to sustain its spending habit. But as Ron Paul pointed out, this is unsustainable as well.
That will be the check. Eventually it collapses because it doesn’t work any longer, just like the reference I made to the collapse of the Soviet system.”
Paul went on to say that the real issue isn’t cutting this program or slashing the budget in that department. There’s a deeper, more fundamental issue Americans need to wrestle with.
This is a philosophical argument. This is not a tactical argument about how you spend here and a management problem, making deals and all that. That is so far removed from what is necessary. Really, the ultimate question that has to be answered – and we’re going to be forced to answer … they will be forced, the American people will be forced to ask the question and participate in the answer … the question is what should the role of government be? Right now there is no one in Washington, and the draining the swamp slogan did not even suggest that we will talk about the role of government.”
Meanwhile, it’s middle America that’s being hurt by all of the debt and currency manipulation. Ron’s co-host talked about walking through Philadelphia recently and seeing boarded up buildings and a large number of homeless people. Ron said this is the result of destroying a sound currency.
There was a pretty astute prediction made by Mises many, many years ago … If you destroy a currency, a sound currency, which was the restraining instrument on spending because you can’t print gold. So there would always be restraints. You would have to ask the people for the money because you’d have to through taxation. But he said, when you destroy a currency you always destroy the middle class.”