After the mostly nauseating SOTU speech by Obama… I noticed that Rand Paul’s press release earlier today announcing his bill to cut spending by $500 billion in 1 year. Not only that but he posted the bill itself along with a 37 page overview with highlights of specific departments/funding he would cut. It’s quite interesting to read and rather bold. In other words… I love it.
Yes, it will never pass, but I still love it.
Some highlights if you are not interested in opening the pdf linked above (though I recommend it because he explains why the cuts can be made):
Legislative Branch – Cut by 23%
Judicial Branch – Cut by 32%
Dept. of Agriculture – Cut by 30%
Dept. of Commerce – Cut by 54%
Military/Dept. of Defense – Cut by 6.5%
Dept. of Education – Cut by 83%
Dept. of Energy – Cut by 100%
Health and Human Services – Cut by 26%
FDA – Cut by 62%
CDC – Cut by 28%
NIH – Cut by 37%
TSA – Cut by 40%
Housing and Urban Development – cut by 100%
Eliminate Amtrak Subsidies
EPA – Cut by 29%
International Aid – Cut by 100%
NASA – Cut by 25% (mentions fostering private space exploration/tourism)
Quote of the Day: “…a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicities.” – Thomas Jefferson
The cuts would total $2.5 trillion over ten years. Some of that amount could be based on rosy scenarios. It’s certainly true that cuts to defense and entitlements must still be made to balance the books, but this bill is still an important first step. It means . . .
Quote of the Day: “There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him.” — Robert A. Heinlein (1907-1988) American writer
Should you be forced, at the point of a tax-collector’s gun, to fund . . .
* political candidates you dislike?
* the communication of political beliefs you oppose?
by Peter Schiff, CEO of Euro Pacific Capital, and host of The Peter Schiff Show, broadcasting live from WSTC Norwalk CT from 6pm – 8pm Eastern time every weeknight, and streaming at www.schiffradio.com
The global economy has become so unbalanced that even government ministers who would normally have trouble explaining supply or demand clearly recognize that something has to give. To a very large extent the distortions are caused by China’s long-standing policy of pegging its currency, the yuan, to the U.S. dollar. But as China’s economy gains strength, and the American economy weakens, the cost and difficulty of maintaining the peg become ever greater, and eventually outweigh the benefits that the policy supposedly delivers to China. In the first few weeks of 2011 fresh evidence has arisen that shows just how difficult it has become for Beijing.
Twenty years ago, China’s leaders decided to ditch the disaster of economic communism in favor of privatized, export-focused, industry. The plan largely worked. Over that time, China has arguably moved more people out of poverty in the shortest amount of time in the history of the planet. But somewhere along the way, China’s leaders became addicted to a game plan that outlived its usefulness.
In order to maintain the peg, China must continually buy dollars on the open market. But the weaker the dollar gets, the more dollars China must buy. And with the U.S. Federal Reserve pulling out all the stops to create inflation and push down the dollar, Beijing’s task becomes nearly impossible. Last week, it was announced that China’s foreign exchange reserves, the amount of foreign currency held at its central bank (mostly in U.S. dollars), increased by a record $199 billion in 4th quarter 2010, to reach $2.85 trillion. These reserves currently account for a staggering 49% of China’s annual GDP (if the same proportional amount were held by the U.S., our measly $46 billion in reserves would have to increase 163 times to $7.5 trillion).
The Internet managed to revolutionize our lives without the involvement of busy-body politicians. Instead, the Internet is entirely regulated by non-State institutions, incentives, and rules. These free market forms of regulation actually work, unlike most State regulations. The politicians find this hard to tolerate, so they’re constantly looking for excuses to meddle.
If you like what the free market version of the Internet has done for you, then please take action to protect it from interference by The State.
In the coming weeks and months we’ll use this campaign to address specific issues. But Congress should also be told right now where you stand on the issue as a whole. That’s why we’re asking you to send a letter to your Representative and your two Senators telling them that you value Internet freedom.
The hard-wired letter says . . .
Please oppose any attempts to undermine Internet freedom.
You may borrow from or copy these additional remarks, or write something of your own . . . Read More »
Many states can’t pay their bills. Their unfunded obligations total trillions of dollars. Some of these states will want a bailout from Congress. Do you want to pay for this, or should the politicians and the unions who created these messes feel the pain instead of you?
During his 2008 presidential campaign, Ron Paul, never failed to mention the importance young people played in his hope for a better future for America. In every one of his speeches and interviews he would always use the words, “and especially the young people”. Paul has stated that it is a key strategy because young people tend to be more open-minded and aren’t so stubborn to cling to outmoded establishment beliefs. This is where the Young Americans for Liberty and their new initiative, “Year of Youth” can be essential.
by John Browne, Senior Market Strategist at Euro Pacific Capital
While the markets have known for almost three months that the 2010 election delivered the House of Representatives to the tea-infused Republican Party, I did expect a greater reaction on Wall Street to the formalities of the opening sessions of Congress yesterday.
If the Republicans make good on their campaign promises, we will see cuts in government spending and an end to fiscal stimulus. Given that short-term stock market performance is very much dependent on such government assistance, the current rally is hard to fathom. Meanwhile, gold and silver have experienced a counterintuitive correction (although to be honest, pundits are making much more of this 4% pullback than the size of the move merits). Could it be that the markets now believe that fiscal restraint in Washington is the best pathway to growth? Can a leopard really change his spots?
Not likely, I say. Rather, I believe that we are simply seeing some short-term momentum. Speculators tend to buy and sell on momentum, while investors tend to accumulate on dips and sell on fundamental changes. Anyone with a pragmatic view of Washington must realize that real change is unlikely.
The 112th Congress was sworn in yesterday. As expected John Boehner became the new Speaker of The House. Senator Rand Paul and Congressman Ron Paul made several media appearances together.
First, Ron and Rand appeared together on ABC Morning News with George Stephanopoulos:
Neil Cavuto talks to father and son in a more lighthearted discussion but ultimately they discuss raising the debt ceiling and economics. At one point Ron Paul laughs at the nibbling around the edges and says, “I want to repeal the whole government.” Good old Ron.
Ron Paul and incoming Kentucky Senator Rand Paul sat down with an interview with Anderson Cooper earlier tonight. It was an interesting contrast of styles with a similar message.
Liberty Maven
by John Browne, Senior Market Strategist at Euro Pacific Capital
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