Republican Promises to Cut Budget Not Being Kept

Republicans Proposing to Cut Just $32 Billion from 2011 Budget

Remember when Republicans promised to cut the budget by at least $100 Billion? It looks like that promise has gone by the boards. House Republicans pledged Thursday to cut about $32 billion from agency budgets over the next few months, a paltry sum.

To put this in perspective, the entire Federal budget is about $3.5 Trillion. $32 Billion amounts to less than 1% of the Federal budget. And this is what we elected the Republican House to do? What’s more, the longer the House fiddles around and keeps the government running on a Continuing Resolution (CR), the lower the budget cut will eventually turn out to be.

Even with this paltry budget cut for 2011, the Washington Post today (2/3/2011) has an article proclaiming that this is some kind of disaster in the making. The Post article claims that “The figure, announced by House Budget Committee Chairman Paul Ryan (R-Wis.), represents an unprecedented rollback that would force some domestic agencies to immediately slash spending by as much as 20 percent, independent budget analysts said”. Imagine that, a 1% cut in the budget is unprecedented. The Post’s article goes on to say “Democrats immediately vowed to fight the proposal, calling it a short-sighted plan that would kill many critical government services and slow the burgeoning economic recovery.”

So even with the most paltry, trifling and insignificant cut that Paul Ryan and the Republicans have come up with, the Democrats and their apologists in the liberal media are already declaring that Armageddon is upon us with such a massive cut in spending. Hardly! There are plenty of government agencies that could do with substantially more than a 20% cut. How about the Department of Education, the Department of Energy, the EPA, and the agencies that feed money to the NPR propaganda machine and the abortion mill called Planned Parenthood, for starters.

Granted, $32 Billion is at least a cut and not an increase. But it represents only 2.1% of a $1.5 Trillion federal deficit, when we should be carving out a very substantial portion of the deficit, with the objective of eliminating it altogether. This $32 Billion cut is too little, too late and House Republicans should go back to the drawing board and come up with at least the $100 Billion in cuts that they promised. If they don’t do this, I fear that the Democrats will have a field day in 2012 declaring that Republicans cannot be trusted to keep their promises.

If the media and the opposition party generate such a fight for a measly 1% cut in the overall federal budget, how can this nation ever get out from under its massive debts? The answer of course is, it can’t.

Massive Federal Debts Will Never be Paid

You hear every day from those politicians concerned about our massive deficits and that our children and grandchildren will be saddled with those terrible debts. Actually, I don’t believe that will happen. What will happen is that this generation will be saddled with massive inflation, as the federal government solves the debt program by using the printing press. The Federal Reserve will monetize the debt.

You and I, and especially those of us who are retired or close to retirement, will suffer the most. Armageddon will not be a few federal agencies having their budgets cut, but rather it will be those on fixed incomes who will be devastated. While we are all worrying about our grandchildren paying off our debts, it is this generation that will be paying the price with a massive inflation. For those who don’t think it can happen, just look at the activities of the Federal Reserve today. Its Quantitative Easing programs are a euphemism for printing vastly more money that is represented by the nation’s GDP. We are heading for a period that existed in the early 1920’s in post World War I Germany. It’s only a matter of time.