Elizabeth Warren, Friend of the Big Banks?


On the Wall Street Journal, we read:

A critical question for Sen. Rand Paul’s effort to expand oversight of the Federal Reserve’s interest-rate decisions is whether he could win support from the central bank’s leftist critics in Congress.

But one of the Senate’s most prominent liberal Democrats says she’s not on board.

Sen. Elizabeth Warren (D., Mass.), a member of the Banking Committee and an outspoken critic of the Fed’s oversight of big banks, said she does not support Mr. Paul’s proposed legislation, which she said could have “dangerous” implications for monetary policy.

“I strongly support and continue to press for greater congressional oversight of the Fed’s regulatory and supervisory responsibilities, and I believe the Fed’s balance sheet should be regularly audited – which the law already requires,” Ms. Warren said in an emailed statement. “But I oppose the current version of this bill because it promotes congressional meddling in the Fed’s monetary policy decisions, which risks politicizing those decisions and may have dangerous implications for financial stability and the health of the global economy.”

Elizabeth Warren plays the role of left-wing populist and champion of the people. According to her, she stands for democracy and civil rights vs. Wall Street and corporatocracy.

But where the Federal Reserve is concerned, Elizabeth Warren does not like democracy, which she refers to as “congressional meddling”. Where the Federal Reserve is concerned, Mrs. Warren wants the little people to butt out; she demands that a small elite cadre of economic Ph.D.-holders be allowed to do what they want with the central bank. Little people be damned!

Mrs. Warren claims she opposes allowing a full audit of the Federal Reserve in order to prevent “politicizing” Federal Reserve decisions. Allow me to drill this into your skull: Anyone who does not think the Federal Reserve is already politicized is either utterly naïve or an utter fool. Warren is either one of these.

Former Fed chairman Ben Bernanke’s behavior in 2008 should have proved this to everyone. In 2008, Secretary of the Treasury Hank Paulson demanded that Ben Bernanke help the government bail out the large banks. Ben Bernanke played lapdog to every last demand and complied. The monetary base was expanded by 300%; Interest rates went to nearly 0%. Hank Paulson and the Federal Government bailed out the Big Banks, and the Federal Reserve played their role to the fullest.

The Federal Reserve is indeed politicized; it is politicized by the Big Banks. This isn’t new; the Fed has always, since its inception in 1914, been a tool for the Big Banking cartel to smash competitors. It continues to play this role. Anyone who thinks otherwise does not understand the true nature of the Federal Reserve.

This is partially why Congress has never voted to fully audit the Federal Reserve. In addition to that, Congress is afraid of what they might discover… for instance, that the Federal Reserve legally owns almost no gold, that all of the gold in the vaults in legally owned by other entities. Congress puts their hands over their eyes and walks away. The only two Congressmen to ever really challenge the Fed have been Ron and Rand Paul. Nobody else challenges the Fed. Nobody other than Ron or Rand Paul have ever talked tough the Fed Chairman.

Elizabeth Warren loves pretending to be a warrior against Big Banks and Wall Street interests. If she really wants to fight the influence of Big Banking interests, then there is absolutely no reason why she should oppose this bill. In fact, if she really believes in what she preaches, she should be an Anti-Fed activist, much like myself.

But Mrs. Warren is not an Anti-Fed activist. She wants the Fed to be free of oversight. Why? Because Warren is a Harvard Liberal. She has only ever worked for the government and in academia, which is basically working for the government. Mrs. Warren believes in the wise leadership of Ph.D.-holding professors and engineers to run society. She is a throwback to the Wilsonian progressives of the early 1900s, who believed they could run society to everyone’s benefit, so long as they get complete control.

Mrs. Warren believes in the power of educated bureaucrats to run society, plain and simple. Why wouldn’t she want the Fed to run the way it does: turned by the hand of Ph.D.-holding economist bureaucrats? If Elizabeth Warren had her way, nearly all of government would be run by unelected Ph.D.-holding bureaucrats that do not have to answer to voters. This is the Progressive’s grand dream.

The Federal Reserve is dominated by, and run for the benefit of, the Big Banks. Anyone who claims to oppose the Big Banking cartel but does not also oppose the Federal Reserve is either a fool or a liar. Mrs. Warren is either one of those.

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