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Obama calls for slowing growth of Medicaid, Medicare to reduce deficit
By Jack Torry Washington Bureau
WASHINGTON - Under pressure from lawmakers to propose a plan to reduce the deficit, President Barack Obama Wednesday called for restraints in the growth of the popular programs of Medicaid and Medicare while raising taxes on the wealthiest of Americans.
In a speech at George Washington University, Obama outlined a plan that would reduce the federal deficit by $4 trillion during the next 12 years. His plan would include a blend of cutting $3 in federal spending for every $1 in new taxes.
“We have to live within our means, we have to reduce our deficit, and we have to get back on a path that will allow us to pay down our debt,’’ Obama said. “And we have to do it in a way that protects the recovery, and protects the investments we need to grow, creates jobs and win the future.’’
Obama’s plan would generate $480 billion in savings in Medicare, the federal program that provides health coverage for the elderly, and Medicaid, which is a joint federal and state program that pays for health costs and long-term nursing care for the poor.
By offering to reform and restrain the growth in the entitlement programs of Medicare and Medicaid, Obama runs the risk of offending his strongest supporters in the Democratic Party, many of whom deeply oppose cutting federal spending for the two health programs.
But projections by the non-partisan Congressional Budget Office make clear that without changes in federal entitlement programs, the budget could only be balanced through massive tax increases. The CBO calculates that under current law, the federal government’s publicly held debt would increase by nearly $7 trillion in the next decade.
In its January report, CBO concluded that federal spending on entitlements - which includes Social Security and Children’s Health Insurance - would increase from 10 percent of the nation’s gross domestic product to 16 percent during the next 25 years.
“So here’s the truth,’’ Obama said. “Around two-thirds of our budget - two thirds - is spent on Medicare, Medicaid, Social Security and national security.’’
Obama, like the budget-cutting plan proposed this month by House Budget Committee Chairman Paul Ryan, R-Wis., chose not to offer any changes to Social Security.
To make certain the deficit goals he outlined are reached, Obama proposed what the White House described as a trigger that would automatically impose spending cuts if budget projections do not show a decline in the ratio between federal debt and the nation’s gross domestic product.
The trigger, which would take effect in 2014, presumably would be modeled after the Gramm-Rudman law of the 1980s, which imposed automatic spending reductions if Congress failed to reduce deficits. Obama’s trigger would exempt Social Security, Medicare and low-income programs.
“That should be an incentive for us to act boldly now, instead of kicking our problems further down the road,’’ Obama said.
The president also proposed that Vice President Joe Biden next month would launch a new round of negotiations with House and Senate leaders in an effort to produce a grand compromise by the end of June that would dramatically reduce the federal deficit.
“I don’t expect the details in any final agreement to look exactly like the approach I laid out today,’’ Obama said. “This is a democracy. That’s not how things work.’’
The speech was designed not only to demonstrate that Obama is serious about reducing the deficit, but reducing objections by conservative lawmakers to raise the government’s debt ceiling of $14.3 trillion. Without Congress approving an increase, the government could not borrow money and might face a default, which would have a ruinous impact on the economy.
But there is a vast chasm between the White House and Republicans on how to reduce the deficit. At a news conference on Capitol Hill, House Speaker John Boehner, R-West Chester Township, made clear that House Republicans would not agree to any tax increases to reduce the deficit.
“I have been pushing the president for months to engage in this discussion about our long-term fiscal mess,’’ Boehner said. “I’m glad that he’s finally decided to engage in it. But there’s been a lot of discussion about the need to raise taxes. And I’ll just say this: We can’t tax the very people that we expect to re-invest in our economy and to create jobs. Washington has a spending problem, not a revenue problem.’’
While Obama would trim spending for Medicare and Medicaid, he flatly rejected Ryan’s plan to dramatically revise the two programs that consumer a sizable share of the federal budget.
In particular, Ryan wants to scrap the current Medicare system where the government pays doctors and hospitals the health bills for the elderly. Instead, by 2022, Ryan wants the government to provide the elderly with money to buy insurance from private companies.
Ryan also would transform Medicaid by converting the federal share of the program’s financing into a block grant, an approach favored by Gov. John Kasich. The block grant would allow each state to design its own Medicaid systems that could save taxpayer dollars.
But Obama, while praising Ryan for putting forth a plan, castigated his proposed revisions to Medicare. Obama asserted that “instead of guaranteed health care, you will get a voucher. And if that voucher isn’t worth enough to buy insurance, tough luck - you’re on your own. Put simply, it ends Medicare as we know it.’’
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By Squirrellygirl
April 19, 2011 1:27 PM | Link to this
Obama doesn’t see a need to make sure DoD is appropriately funded. He wants America divided into 3 parts. His anti-American agenda includes funneling tax money out of our country and into poorer countries, like he gave Brazil billions of dollars for drilling there. Forget drilling here, we can buy it from Brazil! Nice plan, there prezzy. And lets burn up all of our corn as Ethanol and export the rest. We only have 13-15 days of reserves. Nice plan there prezzy! Why doesn’t the prezident take another round the world trip on the American tax payer dime, and bring his family with him? They can go to the Palestinians and apologize for America and promise to bomb Israel when UN gives him their marching orders! Responsibility to Protect (R2P), S. Power, Cass Sustein’s wife got Obama to bomb Libya using UN’s R2P. And guess who is next on UN’s R2P list! That’s right—Israel. UN won’t accept the retracted report that eroneously claimed that Israel targeted Palestinian civilians in their attacks. So they have a flotilla ready to go in there in May and Code Pink is behind it. That’s right, working with the Palestinian terrorists right next to them are the left wing radicals funded by (you guessed it!) GEORGE SOROS! And the unions, and their days of rage, yes, it is all just one big coincidence, one big coinkidinki! And Obama will have UN’s authority to go in and bomb Israel, our FORMER ally! That’s right, because Obama hates Israel. And he hates senior citizens, too. He thinks they have outlived their usefulness to society. That’s how Obama judges people, by how much they contribute to society. Kind of reminds me of an old Twilight Zone episode, about the Librarian…anyone remember that episode. That’s Obama trying to put the Librarian to death for not being useful to society. That’s right. Good Ol’ Obama.
By Squirrellygirl
April 19, 2011 1:14 PM | Link to this
Change “their” to “there” in 2 places. Sorry, no edit key. Also, the other reason is that the Fed is monetizing $2.4 trillion of Obama’s debt. And Obama only pretends to be upset about the elderly and their SS and their medicare. Do you forget that he stole $500 Billion from medicare to help fund his monstrocity of a hc forced redistribution bill? Uh huh. And Obama wants to add a gas tax because all of us poor people aren’t paying enough for gas because some of us are still able to get to work. Yeah, Obama has an agenda, and it is anti-American.
By Squirrellygirl
April 19, 2011 1:09 PM | Link to this
Obama snuck funding for hc bill hidden inside the hc bill so that it couldn’t be defunded. He snuck in their provisions for tax payer abortions (which was never agreed on my Americans who overwhelmingly don’t approve of tax payer funded abortions). He also snuck in their death panels in case of emergency like shortfall of money. When hasn’t any Federal Government program not had an emergency of shortfall of money? So…wouldn’t gutting the hc bill save trillions of dollars? We can’t gut the bill because Pres Obama would veto it even if it passed the Senate. This is why we just received a negative credit rating and why our stockmarket is falling.
By harry
April 19, 2011 11:22 AM | Link to this
Obama wants his changes to take place starting in 2014. Why not 2012? How big will the deficit be by then?
By The Emperor has No Clues
April 16, 2011 6:08 PM | Link to this
I had a dream the other night that Uncle Sam had grown so fat that his cloths no longer fit him. He kept screaming for more cloth and more tailors so that he couldn’t hear the people asking him to diet.
By keepvotingrepublicanandtherewillbenosocialsecurityormedicare
April 16, 2011 4:13 AM | Link to this
If the rich need their tax breaks to create jobs, where are the jobs?
By ObamaIncreasedDeficitBy$4TRILLION
April 15, 2011 1:46 PM | Link to this
The National Debt stood at $10.626 trillion the day Obama was inaugurated. Our deficit is at $14.3+ trillion dollars now. I’m sorry but I can’t hear Obama. His actions speak louder than his words. The $4 trillion he added to the deficit tells me that if he is allowed to raise our taxes any more, he will spend that money instead of paying down the deficit. I don’t trust Obama. Use the internet while you still can, while it is still active (you do know that Obama can shut it down whenever he wants to, right?). Find out what he’s really up to. Him, and Bill Ayers, and George Soros. Find out what they have planned for 25 million Americans who want to keep our Republic and our capitalism. Educate yourself instead of letting the government “educate” you…
By Squirrellygirl
April 15, 2011 12:43 PM | Link to this
The president says he wants us to do well, but his actions speak otherwise. He sent billions of dollars to Brazil, but he says he cares about American jobs. He sent the car plant to Mexico, but he says green jobs will stimulate the American economy. Not so much, huh? Obama signed the law saying he wouldn’t raise taxes, but now here he is again raising our taxes. I saw a rat run across the podium once when he was speaking. Then I saw him catch a fly with one hand. I expect to see flies flying out of his mouth next. We’ve already seen birds drop out of the skies. George Soros (a Jew who hates Jews) is a spooky dude, and Bill Ayers (bombed police dept) scares the crap out of me. Eliminate 25 million Americans and send them to death camps? What kind of reeducation is on YOUR agenda, Dictator Obama?
By Leslie
April 15, 2011 9:19 AM | Link to this
Margaret you are ignorant and naive. Raise taxes and the democrats see it as new found spending money. They won’t fix anything. Raising taxes on the rich won’t fix our problems, once they raise the taxes on the rich, they will raise the taxes on us. Foolish girl taxes are not about taking care of the people, taxes are about power for Politicians to CONTROL the people, using the people’s own money.
By Geroge Dubya
April 14, 2011 11:43 PM | Link to this
young men of every race,but mostley poor,are dying in wars defending this country.If this country has made you wealthy,then it should be in your best interest to pay more in taxes,or go fight for yourself! I dont have a lot of money and dont care to fight for people who think more of money than country.And dont even think for A moment that the pay is equal to a life. Look at it as an investment,more taxes if you are able.After all, freedom isn`t free!
By Geroge Dubya
April 14, 2011 11:43 PM | Link to this
young men of every race,but mostley poor,are dying in wars defending this country.If this country has made you wealthy,then it should be in your best interest to pay more in taxes,or go fight for yourself! I dont have a lot of money and dont care to fight for people who think more of money than country.And dont even think for A moment that the pay is equal to a life. Look at it as an investment,more taxes if you are able.After all, freedom isn`t free!
By Geroge Dubya
April 14, 2011 11:43 PM | Link to this
young men of every race,but mostley poor,are dying in wars defending this country.If this country has made you wealthy,then it should be in your best interest to pay more in taxes,or go fight for yourself! I dont have a lot of money and dont care to fight for people who think more of money than country.And dont even think for A moment that the pay is equal to a life. Look at it as an investment,more taxes if you are able.After all, freedom isn`t free!
By Navin Johnson
April 14, 2011 4:17 PM | Link to this
Margaret, The so called “rich” who pay income tax are the people who provide jobs, many thru Chapter S corporations. They will continue to provide jobs until it is not financially beneficial for them to do so. That is what Obama’s growth stymying policies are doing for them and to them. The true rich in this country do not pay income tax. Their $$ comes from trusts and investments that do not fall under the legal definition of income tax. You know, the Kennedys, Rockefellers, Pelosis, Kerrys, Gores and the Boxers of the world. Those are the type of people that hire teams of lawyers to insure they don’t pay any taxes of anykind. In case you haven’t noticed, Washington is chock full of lawyers. Do a bit of homework, and you will find thru the sheer magnitude of this countries debt, that even taxing any income over $250K at 100%, still would not solve the deficit problem. Too bad you are so eager to buy Obama’s demonization of his desired targets hook, line and sinker, that you won’t even question what thinking people can clearly see is just another line of crap. It may be the opposite of the line of crap he fed you yesterday, but you still buy it without question. Margaret, you are the one who is truly clueless about economics and tax reform. But, unfortunately That is what you voluntarily choose to be.
By Squirrellygirl
April 14, 2011 4:00 PM | Link to this
Uh huh. And that is why we are getting ready to hit a double dip recession, because things are “going so well” huh? How about we stop drilling here and send our tax money to Brazil so they can drill there? How about we send them millions, no no, BILLIONS to Brazil! That’ll help Americans, right? And how about we monetize our debt, say $2.4 trillion? We can inflate the dollar, throw that money back into circulation and nobody will be the wiser, right? WRONG! Our oil and gas prices necessarily skyrocketed and are still going up. Thank you, Obama, but perhaps we should put our bets on a winner, not a low life lawyer loser from a Chicago organizing community center.
By Margaret
April 14, 2011 3:42 PM | Link to this
President Obama is right in repealing the tax cuts for the wealthy. This is what the Clinton Administration did and produced a surplus. The wealthy have expensive lawyers who help them pay the taxes that the middle income Americans pay. When you begin to realize that this country is increasingly the haves and have nots, you will realize that there will not be a middle class unless the deficit is reduced by the wealthy paying their fair share. Most of these ignorant comments are made by middle to low income people who haven’t got a clue about economics and tax reform.
By Squirrellygirl
April 14, 2011 3:22 PM | Link to this
Thank you, Earl, for your kind words. I’m afraid. I’m afraid for our country, that we’re losing our Republic, we’re losing our freedom. Do you think the socialists will allow us to worship God once they completely take over? I don’t think they will. The Bible will always shed light on the darkness that follows everything these progressives do. I believe in God, but I wonder if this is happening to our country because so many people have turned away from God. I never remembering in my entire life hearing so many people question God’s existence. God will allow people to believe a lie if they turn away from the truth. I think that is what is happening in America. I don’t think this administration has good things planned for the elderly. You pay into the system all your life, and when you are done, the socialists take away your ability to sustain yourself because they don’t think you “contribute” anything to society. This is what it is like to live in a country where God is not allowed, unless it is the God of Shariah law where they cut your head off. These are the end days. The UN is poised to attack Israel, and I’m scared for all of us, Earl.
By earl
April 14, 2011 1:11 PM | Link to this
Good link, Squirrellygirl. I love the way you torment liberals with truth.
By Squirrellygirl
April 14, 2011 12:36 PM | Link to this
http://www.infowars.com/social-utility-how-much-are-grandpa-and-grandma-worth/ If you wonder how Obama’s hc plan will work for the elderly, or what Obama has in store for those who have worked all their lives and expect to retire and live out their days in peace, please go to that link. It will open your eyes. Obama and anyone who believes in socialism has some serious issues and only God can help them.
By Squirrellygirl
April 14, 2011 12:10 PM | Link to this
Karon: “We could afford trains.” The ONLY way those trains would save us money is if they took the illegals (NONSTOP) back to Mexico where they came from. We can’t continue to give them freebees when our very Republic is at risk. No, I’m not prejudiced because I want illegal aliens to leave, I’m being realistic. America cannot afford to give away free schooling to illegal immigrants, free medical and foodstamps, when it’s own citizens can’t find good jobs and unemployment hovers around 10%. We should protect the entitlements for the elderly. The other stuff, like free college education or supporting basketweaving festivals, or studies of female college co-ed students dating habits HAS GOT TO GO! Obama’s energy programs is an excuse to take more of our hard earned money and redistribute it—and you and I will be paying the extra, not the rich people. You and I who need gas for our cars so we can go to work and pay for all those taxes Obama is levying on us. Obama is such a liar, he reminds me of Clinton.
By Squirrellygirl
April 14, 2011 12:03 PM | Link to this
Apr 13, 7:46—That person is a poser using my call name. My comments are more intelligent and more authoritative, and I wouldn’t beg someone to vote Republican. I would give examples why they should. That person makes me sound weak, and I’m not weak on these issues, believe me. I’m informed. Obama is a rat who can catch flies with his hands. I truly believe he is ruining our country. And now I ask you to vote Republican, although some of the Republicans are still playing games. We still don’t want Obama back in the WH. He’s playing games with Americans, and he’s not honest. If the poser who posted those comments earlier on this blog was not intending harm to my reputation, then kindly please don’t do it again. Everyone on DDN knows that I have strong opinions which I back up with facts. Thanks.
By Ode to Obama
April 14, 2011 9:14 AM | Link to this
How do I hear thee? Let me count the lies. I hear lies of every depth and breadth and height one can bear. For your end must justify your means. I hear thee lie freely, as men strive for Right. I hear thee lie purely, as you lust for Praise. I hear thee lie with passion to play on our griefs, and with childhood’s faith the masses doth cede. I hear thee lie with a love of revenge, to take what’s not yours to restore whats not been. I hear thee lie, and my faith thee doth lose, for I know that your words are nothing but ruse.
By Navin Johnson
April 14, 2011 8:25 AM | Link to this
Karon, you are once again, and consistantly a shining example of liberal hypocrisy. The same middle class that you claim always has to pay the piper, would be the same middle class that would have to shoulder the costs of the financial albatross that the trains you blindly support. Its seems out of control spending is OK with you, as long as its for the issues you support.
By originalthought(really?)
April 14, 2011 8:25 AM | Link to this
There “They” go again, day after day, having Their dividend (lol) checks directly deposited, whilst engaging in PIGMENT WARFARE. College transcripts? Marxist? Birth Records? You “people” do nothing but marginalize yourselves w/ the petty & infantile, over the top depressing noise, & your constant petulant, meaningless drivel. If just one of you would come up w/ just ONE comment having even a shred of credibility, maybe you would have @ least a crumb of credibility! you sheep should make a movie, call it “The Great Amorican Circle Jerk”, probably win an Oscar for the best picture in the category of Hateful Fiction, & while accepting your award, you could scream & yell about how the “liberals” can’t even write their screenplays w/o type errors, oops!, I mean stereotype errors! Keep living up to expectations, you bunch of self-serving “citizens”!
By R U Kidding Me
April 14, 2011 7:09 AM | Link to this
Hussein Obama is the most inexperienced, divisive, inept president in the history of our once great nation. He doesn’t get the fact that our nation is teetering on the edge of financial armegedon. This clown continues to divide our nation by class by insisting that we continue to soak the “rich” because they are some how lucky or fortunate to have accumulated the wealth they have. Never mind the richest 1% of our population (job providers, small business owners) pay almost 50% of the taxes this nation collects - while 47% of our countries population pays nothing. Most of Husseins supporters are takers, leaches - part of the “give-me-more” crowd whom you can never give enough too - to satisfy. Our country is broke and Hussein can’t bing himself to say the truth is that govt is too big and spends too much. This man was elected only because he is black and a devout liberal. His many flip-flops clearly show he is and never will be anything more than a lying two faced politian who will do and say anything to get elected. Shame on you Barry. Why don’t you come clean and release your records from Occidental College, Columbia University and Harvard Law where you more than likely claimed non-US citizenship. What are you hiding? Are you the Bernie Madeof of American politics. Is your claim of Indonesian citizenship on your college applications and your subsequent election as POTUS the greatest fraud and lie committed in America? When is America going to rid ourselves of this lying fool we have elected as the POTUS But yet this clown continues to call for more taxes. What a joke!
By Hyden Kash
April 14, 2011 6:48 AM | Link to this
I am surely not an Obama fan. I do, as a Republican, encourage Speaker Boehner to support a decent Medicare plan that would cover the needs of our elderly. It may be a huge cost, but our duty to care for them in a sure, compassionate way. Now for Obama, I don’t trust him, don’t believe him and certainly don’t want to see him voted in again in 2012. His net neutrality, his enlargement of the FCC, his global farce, anti-gun, leave the borders open all just make me hope for good conservative prospects for President 2012.
By Kurt
April 14, 2011 4:49 AM | Link to this
When will you people finally realize that Dumbama is a American hating Marxist with deep Muslim sympathies?When will you realize that the only people that like him, vote for a livng, they don’t pay federal taxes, just bloodsucking leeches every single one. Dumbama thinks governemnt is god, that all rights. property, income, belong to god, so he can give it to people to vote democrats back in power.
By Paul
April 14, 2011 12:06 AM | Link to this
As long as mega-corporations like G.E. are allowed to use loopholes to avoid paying a penny in taxes, taxpayers should reject any and all tax increases. Government needs to reform the tax code so More people and corporations pay taxes.
By Paula
April 13, 2011 11:18 PM | Link to this
They could save a ton of money by just getting the illegal aliens OFF the free ride they get right now. I’ve seen a lot of young, non-english speaking people on medicaid and food-stamps. Heck, get their kids out of our schools and a ton of cash would be saved there too.
By karon's alter ego
April 13, 2011 11:18 PM | Link to this
Why can’t the rich give the middle class some of their money trees so there is more money for the government. We could afford trains.
By ohiovoter
April 13, 2011 9:53 PM | Link to this
davidss2, The reason that Obama and Congress are addressing the national deficit right now is that we,as a nation, are months away from hitting the debt limit. If Obama and Congress don’t address the debt limit right now, the nation’s economy will go downhill a faster pace.
By karon
April 13, 2011 9:17 PM | Link to this
Why do the middle class always have to pay the piper? The rich people of this country have not had any tax increase and they are not creating jobs! Vote smart vote democratic!
By ohiovoter
April 13, 2011 7:57 PM | Link to this
Squirrellygirl, I will not be influenced by your decision. Under Paul Ryan’s budget plan, Medicare will no longer exist. The Republican party also wants to privatize Social Security. The reason that he had to propose a plan is that in couple of months we, as a nation, will hit the debt limit. If Congress and the President don’t act the economy will take a nose dive. I suggest that you look at Ryan’s proposed budget plan. Right now I am not taking a side of either political party.
By davidss2
April 13, 2011 7:52 PM | Link to this
Obama is trying to portray himself as the great organizer. He doesn’t do anything about Lybia until it’s too late to force Quaddafy out. He doesn’t do anything about his extravagant spending for two years. Now he’s ready to cut back slightly from the extra high levels he wasted money at. … . . … …Don’t believe the chameleon. Hope and change. No birth certificate. No college records. No background. No votes. No nothing.
By Squirrellygirl
April 13, 2011 7:46 PM | Link to this
Each week his plans become more ludicrous.Now he attaché the aged. When will this be over? Please vote Republican.
By Retired
April 13, 2011 7:41 PM | Link to this
Social Security and Midicare ARE NOT an “entitlement”. I paid into both with MY hard earned money. The govenment has mis-managed the funds and both programs. Obamacare is a perfect example of entitlement and mis-management!
By Scott for T Party
April 13, 2011 7:25 PM | Link to this
With his hatred for the over 60 group, this is predictable.He is grabbing at straws since the Republicans are making him a bigger farce each day.
By Jack the Bear
April 13, 2011 5:11 PM | Link to this
The biggest difference between Medicare and private insurance is Medicare comes with some assurance from the government that you won’t die in a gutter at the hands of penny pinching insurance pirates.
By Another disingenuous counterpunch
April 13, 2011 4:45 PM | Link to this
If President Obama had a viable,doable plan to reduce Medicare and Medicaid spending by $480 billion, why wasn’t it introduced before or with the earlier health care legislation? Pardon my cynicism.
By jane
April 13, 2011 4:45 PM | Link to this
Why do they always have to go after medicare and SS. Why not cut foreign spending and cut the salary of senators and congressman. They just gave themselves 3,000 a month increase. Why?
By Fall back and punt
April 13, 2011 4:35 PM | Link to this
That’s a switch. He wants everything else pushed through at lightening speed. Does this guy have any plan at all? I hear they need community organizing in Chicago.
By ohiodale
April 13, 2011 4:31 PM | Link to this
Obama’s plan is not a real plan just rhetoric. Same old talk of raising taxes and we will save money in medicare and medicade by eliminiating waste. His plan will not reduce the deficit at all. The amount he steals from the rich will be that much less money they spend in our society and the economy will slow down. Look at the sstatics on rasing and lowering taxes. Raising taxes temporarily increases revenue but after a couple of years it slows down the economy and the revenue is about the same as before the tax increase. Raising taxes also serves the liberals so they can decide who gets the money, its called buying votes. Lowering taxes lowers revenue but after a couple of years revenue goes back to the previous levels. Lowering taxes creates more jobs and improves the standard of living for 80% of the population. Bottom line is Obama’s plan is not a real plan and it has no specifics just a bunch of lies. I do think both sides need to compromise.
By Nobody
April 13, 2011 3:48 PM | Link to this
@George, you are correct about that. Also, in my opinion, Medicare & SS are not entitlement programs as they are deducted out of most people’s payroll taxes. Obviously something hasn’t been working for a long time when these programs consume so much of the federal budget. Well, that’s the American way, be reactive, not proactive.
By George Bernard Shaw
April 13, 2011 3:38 PM | Link to this
A government that robs Peter to pay Paul can always depend on the support of Paul.