Video: Johnson warns of ‘imminent financial collapse’
The U.S. Senate approved a stopgap measure Thursday that will fund the government for three more weeks. While the current proposal cuts $6 billion from the federal budget — former New Mexico Gov. Gary Johnson doesn’t think it goes far enough.
In fact, Johnson, who is Chairman of the Our America Initiative and has been traveling the country as a self-described “hypothetical candidate” for president, says because of the deficit and the Federal Reserve’s willingness to continue to print more money, the U.S. is “on the brink of an imminent financial collapse.”
Veritas NM caught up with Johnson on the slopes at Taos Ski Valley over the weekend and talked about the economy and politics (see the video post above).
Since the beginning of the year, Congress will have cut $10 billion in two stopgap budget bills — $1 billion more than they cut when Republicans last controlled Congress in 1995.
With Thursday’s vote, the U.S. Congress bought itself some more time to work out a much-delayed deal as the costs of the stalemate were increasingly felt across the globe.
The Republican-controlled House of Representatives passed the measure on Tuesday.
‘Deeper cuts still needed’
Johnson suggests the cuts should go much deeper, suggesting the U.S. budget must be balanced immediately.
He said he would cut the budget by 43% — by delivering medicare and medicaid to the states in block grants before medicare engulfs the entire federal budget. He believes the state’s lawmakers can decide how to provide healthcare for infants and the elderly more effectively that the unfunded national entitlement programs. Johnson said:
I think we should balance the budget tomorrow. They’re talking about $38 billion in the fiscal year that we’re in — cutting. They’re talking about a $100 billion next year. The highest proposal being made is a $500 billion reduction, well that’s a third of what it should be.
Johnson, a former construction company owner and millionaire, says it’s time for the government to balance expenditures with revenues, because excess spending in the U.S. budget, is producing an unsustainable path for federal debt. He supports spending restraint across the board.
‘Recipe for disaster’
He also believes when government debt worldwide is put under the microscope, it won’t hold up, and claims the $100 trillion in unfunded entitlement liability owed by the U.S. “doesn’t show anyway that it could be paid back, or accounted for in the first place.”
While the dollar continues to be devalued worldwide, Johnson says the Federal Reserve continues to print money to buy back the country’s own debt obligations, which could lead to inflation, or worse, stagflation.
He says that practice has lead to the run up in commodity prices.
‘Time to cut’
Veritas NM asked the governor if now is the time to make deep cuts to programs like student PELL Grants or research to development alternative energy programs.
“I would just suggest that we would be a lot better off by cutting and taking the medicine,” Johnson said.
The alternative, Johnson said, is to allow the ‘patient’ — the economy — “to die.”
While Johnson was governor, he vetoed over 700 bills. We asked him how he would work with Congress to balance the federal budget, if he was elected president.
He said he would “fight it out.”
“(I)t’s definitely a fight work taking on, the result being you and I have a country to live in as opposed to losing it all, which is where we are at,” Johnson said.
Johnson close to announcing presidential bid?
In the past two years, serving as Chairman of the Our America Initative, the former Gov. told us he’s visited 32 states, including 14 combined trips to New Hampshire and Iowa — two early presidential contest states.
Asked if he was close to announcing a presidential bid, Johnson said:
Speaking hypothetically if one were to consider doing that I would think that person would have to be on the verge of announcing, because last cycle at this time there were 14 announced candidates for president. At this point there are just a handful – I think.
Johnson says people across the are listening to his messages about balancing the budget, immigration and legalizing drugs.
“I was kind of looking to get egged and tomatoed and sent back here to spend my time, but I’m finding I’m not having as much time to spend here as I might like,” he said.
Sounds like a man planning to enter the race for the White House and launch a presidential run…but not before spending a weekend making extreme runs at Taos Ski Valley.