Elizabeth Warren Turns a Blind Eye to the Central Bank
Sovereign Solutions Editor’s Note:
A good note to complement the featured article would simply be this:
There is absolutely NO “unfettered free market” to blame for bad economic effects and various resource-based crises when MONOPOLY central bank organizations SET rates of interest on currencies and by extension most forms of lending and borrowing.
Call me a crank all you want about these matters, but WORDS very much do matter. Are the same old narratives and political economy bull crap really that hard to let go of, that difficult to refrain from defending with the ridiculous ad hominem name-calling attack?
Instead, challenge my assertion that CENTRALLY SET rates of interest are THE LIFE BLOOD of modern day economic activity.
Since this assertion is quite clearly true, then it follows that such systemically rooted central planning cannot possibly yield, regardless of anything else at all, actualUNFETTERED FREE MARKETS!
I swear, it really does seem that the fix is always in to blame economic crises on a largely mythical unfettered free market.
It is about high time more individuals DEMAND fealty to objective reality and truth as opposed to subjective fantasy and feel-good word imagery and promises of SOMETHING FOR NOTHING.
As an aside, I personally believe the political figure identified very much KNOWS how bad her proposals and ideas generally are for people. This is where the author and I differ substantially.
Senator Elizabeth Warren is perhaps best known for advancing the narrative that the 2000s housing bubble, collapse, and Great Recession, from which much of the US and the world have yet to fully recover, were the result of “unfettered Wall Street bankers tanking the economy” by “tricking borrowers” into bigger homes and debts than they could afford. This, she asserts, was helped along by the banks’ dramatically increasing lending to “subprime” borrowers, thereby fueling a real estate bubble and then ushering in a “subprime foreclosure crisis” that “spread to” the rest of the economy.
Based on this thesis, she has proposed numerous new regulations, some of which happen to address other legitimate concerns, but none of which address the root cause of the housing and foreclosure crises in the US and around the world. Nor does she address the massive leveraging-up of most developed countries’ household sectors, whose debts continue to weigh upon the world economy.
The Role of Central Banks
As we will show, the root cause of these evils was the volatile shift in policy interest rates set not by the “unfettered” market but by the central banks. If Senator Warren wishes to prevent the next bubble and financial crisis by “reining in” the banks that caused the last bubble and crisis, she should focus on the central banks. By occupying a unique position which puts her in charge of reforming the financial system, and failing to address the root cause of the imbalances that she is charged with preventing, Senator Warren stands in the way of someone else picking up that mantle and getting the job done.
My name is Matthew. I am founder of and manage Sovereign Liberty Solutions.
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