Hello, this is Ron Paul with your weekly update for Monday, June 5th. Republicans fiscally irresponsible

act. The political and financial class breathes the sigh of relief when Congress passed the fiscal

responsibility act of 2023. The bill suspends the debt ceiling for two years, thus avoiding the

establishment's nightmare of a government default on its debt. Rather, it allows the government to

continue adding trillions of dollars of debt that will be monetized by the Federal Reserve. Of course,

this default will be felt by the people in the form of an inflation tax. This inflation tax may

be the worst of all taxes because it is both hidden and regressive. Politicians love to point

the finger at greedy corporations, labor unions, and even consumers for increasing prices instead

of taking responsibility for the legislation they pass that incentivizes the Federal Reserve to

create more inflation. Republican supporters of the bill claim it begins to roll back the excessive

spending of the Biden years. While the bill does resend $28 billion of unspent COVID funds,

it just recycles that money into the fiscal year 2024. Thus, it does not save taxpayers a dime.

The bill does calf domestic discretionary spending for fiscal year 2024 at $704 billion

and spending for fiscal year 2025 at $711 billion. However, these caps come from a budget whose

baseline includes the increased COVID spending. The bill only cuts spending by 0.1 to 0.2 percent

of gross domestic product over the next two years, assuming Congress does not reverse the cuts.

Of course, it makes no attempts to actually cut spending much less eradicate any illegitimate and

unconstitutional government agencies, cabinet departments, or programs. Even though defense is the

third largest item in the budget behind Social Security, Medicare, and the interest on the national

debt, our annual military budget alone is more than the combined budgets of the next 10 biggest

spending countries. The Fiscal Responsibility Act doesn't take a penny away from the military

budget. Instead, it matches President Biden's request for a 3.2 percent increase. This increase

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