While Joe Biden’s political failures grab the headlines, one element of his agenda has failed to reach many mainstream media. His appointment to the Office of the Comptroller of the Mint, Omarova willow, is critical but was barely mentioned in last week’s news cycle. The appointment signals the likely direction of poor fiscal policy, even going so far as to infiltrate the nominally apolitical Federal Reserve, and the various ways the federal government could take control of Americans’ banking and spending habits.

The Federal Reserve is increasingly acting as a repository for Washington’s bad ideas. Bad real estate debt? Ask the Fed to buy it back to protect the big banks from liability. Need to support the economy? Buy bank bonds via quantitative easing. Is the pandemic threatening the status quo? Inject over $ 4 trillion into the economy, causing widespread inflation.

The Fed’s supposed independence was supposed to protect it from the whims of a president or Congress keen on certain political results. Instead, it has increasingly become a fourth branch of government, especially as politicians try to extricate themselves from recessions, the pandemic, and excessive government spending. President BidenJoe Biden’s Vaccination Rise Includes Biggest Republican Gain Since April: Gallup Power grab? The Federal Reserve may soon be our only Ford bank asking salaried workers for PLUS vaccine status is keen to continue inflationary policies, realizing that the Fed’s balance sheet is double that of the federal budget. The crucial link between bad White House policies and future Fed policy will go through Willow Omarova, assuming it is confirmed.

The immediate effects of Omarova’s confirmation could be dramatic. Cornell Law School professor is strongly anti-Wall Street – instead of tighter oversight, she also wants private banking to fall under the purview of the Federal Reserve. Such a move would not only be catastrophic for the country’s economy, but several major steps towards central planning and moving away from the free market. Taken to the extreme, it would mean that the Federal Reserve, acting on Washington’s behalf, could become the only place citizens could deposit their money. Such a massive transformation would be accomplished by replacing consumer deposits with a new digital dollar, held by the Fed, and, in his own words, “radically reshaping the basic architecture and dynamics of modern finance.”

Omarova’s appointment signals Biden’s growing White House willingness to bow to the left wing of the Democratic Party – she withdrew a previous candidate, Michael barr, who opposed Rep. Alexandria Ocasio-CortezAlexandria Ocasio-Cortez Takeover? The Federal Reserve may soon be our only bank (DN.Y.) and his followers.

The risks if the Federal Reserve takes control of private banking are extreme. For starters, it could be a complete ban on the use of cryptocurrency-related funds. The Fed’s control over all bank accounts would also allow extended powers over the average person’s wallet. A centrally controlled digital dollar could be created instantly and distributed into wallets for social assistance and social security payments. It could also deny people considered “extremists” access to their money. Today we might laugh at the idea of ​​banking access being suspended for calling someone with the wrong pronoun, but the real analogues may not be so far in the future.

By assuming the role of an ordinary bank, the Fed could also repeat and amplify all the worst mistakes of the banks of the 1990s and 2000s. Under successive terms and the Community Reinvestment Act, trillions of dollars have been invested in subprime and other risky mortgages to balance racial and economic inequalities. In the near future, if Omarova’s wishes come true, the Fed’s much larger balance sheet, control over the banking sector, and increased desire for “fairness” could all combine to create a far worse financial crisis than it is. ‘in 2008. Before the financial crash, Washington forced banks to grant increasingly risky loans to unskilled – risky borrowers. Imagine this process, supercharged by awakened rhetoric, a lot more money than a decade and a half ago, and all the money and cachet in the Federal Reserve. Too big to fail would run into national insolvency.

Omarova cannot implement all of these policies on her own. But that President Biden names even such a radical, who wants to blur the line between central banking and Marxism, is a turn to the left.

The increasing use of unilateral actions by the Federal Reserve and White House executive orders could, over the course of a decade or two, transform the Fed’s role from printing greenbacks to controlling if you get stuck on your bank account to buy Bitcoin.

Biden opens a proverbial Pandora’s Box. When the big banks were “too big to fail” in 2008, it was taxpayer dollars and the toxic debt buyouts by the Federal Reserve that were used as a one-size-fits-all approach. If the Fed brings this nation into another, even bigger version of the 2008 financial crisis, who the hell would bail us out? At this point, our democratic capitalist system would have already been consumed by political appointments and lifelong bureaucrats. Your privacy and financial independence would be a relic of the past.

Think you hate big banks now? Wait until there is only one.

Kristin Tate is a libertarian writer and analyst for Young Americans for Liberty. She is an author whose latest book is “How can I impose on you? A field guide for the great American scam.”Follow her on Twitter @KristinBTate.

Source link


Huffman and Thompson Pen Letter to Buttigieg Opposing Federal Loans for 'Disastrous' Coal Train Project | Lost Coast Outpost


Student loan giant Navient to stop offering federal loans

Check Also