Pagination not working in custom shortcode

Here’s the situation. This code is on a website with about 400 posts. On several pages of the site, I’m using a shortcode called [show_posts], and I have it setup so that it will pull in category and/or tags to filter the posts that are displayed.
One example is [show_posts tag=”news”] another is [show_posts category=”fitness” posts_per_page=”10″]

I just realized that the pagination isn’t working anymore.

Can anyone please help me!!?? (I think I’ve included everything needed from my functions.php file)

/**********************************************************************
SETUP PAGINATION
***********************************************************************/
function paginationmen($pages = '', $range = 4)
{
     $showitems = ($range * 2)+1;  

     global $paged;
     if(empty($paged)) $paged = 1;

     if($pages == '')
     {
         global $wp_query;
         $pages = $wp_query->max_num_pages;
         if(!$pages)
         {
             $pages = 1;
         }
     }   

     if(1 != $pages)
     {
		 /*<span>Page ".$paged." of ".$pages."</span>*/
         echo "<div class='pagination-list'>";
         if($paged > 2 && $paged > $range+1 && $showitems < $pages) echo "<a href='".get_pagenum_link(1)."'>«</a>";
         if($paged > 1 && $showitems < $pages) echo "<a href='".get_pagenum_link($paged - 1)."'>‹</a>";

         for ($i=1; $i <= $pages; $i++)
         {
             if (1 != $pages &&( !($i >= $paged+$range+1 || $i <= $paged-$range-1) || $pages <= $showitems ))
             {
                 echo ($paged == $i)? "<span class=\"current\">".$i."</span>":"<a href='".get_pagenum_link($i)."' class=\"inactive\">".$i."</a>";
             }
         }

         if ($paged < $pages && $showitems < $pages) echo "<a href=\"".get_pagenum_link($paged + 1)."\">›</a>";
         if ($paged < $pages-1 &&  $paged+$range-1 < $pages && $showitems < $pages) echo "<a href='".get_pagenum_link($pages)."'>»</a>";
         echo "</div>";
     }
}

/**********************************************************************
GET POST IMAGE
***********************************************************************/

function post_main_image() {
   global $post, $posts;
   $first_img = '';
   ob_start();
   ob_end_clean();
   $output = preg_match_all('/<img.+src=[\'"]([^\'"]+)[\'"].*>/i', $post->post_content, $matches);
   $first_img = $matches [1] [0];

   // no image found display default image instead
	if(empty($first_img)){
		return "";
	}else{
		if(isImage($first_img)==false){
			return "";
		}else{
			return $first_img;
		}
   }
}
 function isImage($url)
  {
    $pos = strrpos( $url, ".");
	if ($pos === false)
	  return false;
	$ext = strtolower(trim(substr( $url, $pos)));
	$imgExts = array(".gif", ".jpg", ".jpeg", ".png", ".tiff", ".tif"); // this is far from complete but that's always going to be the case...
	if ( in_array($ext, $imgExts) )
	  return true;
    return false;
  }

/**********************************************************************
BLOG shortcode [show_posts]
***********************************************************************/

function blogposts_func($atts ){

 extract(shortcode_atts( array(
		'category' => '',
		'tag' => '',
		'view' => '10',
	), $atts ) );

$paged = get_query_var('paged') ? get_query_var('paged') : 1;
	$loop =new WP_Query(array( 'post_type' => 'post',
		'order'           => 'DESC',
		'tag' => $tag,
		'category_name'  =>$category,
		'posts_per_page' =>$view,
		'echo' =>0,
		'offset' => 0,
		'paged' => $paged,
		 ));
	ob_start();	 	

		while ($loop->have_posts() ) : $loop->the_post();
        ?>
            <div class="show-post list-post">
           <?php if ((function_exists('has_post_thumbnail')) && (has_post_thumbnail())) { ?>
            <div class="list-post-image">
                <a href="<?php the_permalink() ?>" title="<?php the_title_attribute(); ?>">
                  <?php the_post_thumbnail(array(108,108));  ?>
                </a>
                </div>
                <div class="list-post-text short-text">
                <a href="<?php the_permalink() ?>"  title="<?php the_title_attribute(); ?>"><h1><?php the_title(); ?></h1></a>
                <p><?php echo get_the_date('l, F j, Y'); ?></p>
                </div>
            	<br class="clear" />
            <?php } else {
            if(post_main_image()==""){
            ?>
                <div class="list-post-text">
                <a href="<?php the_permalink() ?>"><h1><?php the_title(); ?></h1></a>
                <p><?php echo get_the_date('l, F j, Y'); ?></p>
                </div>
            <br class="clear" />
            <?php
            }else{
            ?>
                <div class="list-post-image">
                <a href="<?php the_permalink() ?>" title="<?php the_title_attribute(); ?>"><img src="<?php echo post_main_image();?>" alt="Image from: <?php the_title_attribute(); ?>" /></a>
                </div>
                <div class="list-post-text short-text">
                <a href="<?php the_permalink() ?>"  title="<?php the_title_attribute(); ?>"><h1><?php the_title(); ?></h1></a>
                <p><?php echo get_the_date('l, F j, Y'); ?></p>
                </div>
            <br class="clear" />
            <?php
            }
            }
            ?>
            </div>
        <?php
       endwhile;
        ?>
        <!-- pagination -->
<?php
if (function_exists("paginationmen")) {
	paginationmen($loop->max_num_pages);
}

?>

  <!--End pagination-->
    <!--End post-->
<?php
	$Output_string = ob_get_contents ();
	ob_end_clean();
	//$return = $content . $contentf;

	return $Output_string;

}
add_shortcode( 'show_posts', 'blogposts_func' );