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Biden's Bank Regulatory Nominee Espouses Helicopter Money and Praises the Old USSR

Meet Saule Omarova, President's Biden's Marxist nominee for Comptroller of the Currency.
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Biden's Soviet Noiminee

Never Seen a More ‘Radical’ Regulatory Nominee

Senator Pat Toomey says I’ve Never Seen a More ‘Radical’ Regulatory Nominee Than Saule Omarova.

“Ms. Omarova doesn’t just want to nationalize banking . . . she also wants the banking regulators to run the whole economy.

Under her plan, laid out in a 2016 paper, the Federal Reserve would set prices in large sectors of the U.S. economy that she deems to be ‘systemically important prices,’ . . . ‘… widely used fuels, foodstuffs, and some other raw material’ and ‘wage or salary indices,’ among others.

She’s openly advocated that the Federal government sets wages and prices throughout the economy. Is this not anything like a free enterprise economy? It’s unbelievable.”

Omarova Hopes Oil and Gas Companies Go Bankrupt 

In Praise if the Old USSR

"Say what you will about old USSR, there was no gender pay gap there."

How to Fix the Housing Shortage

People's Ledger

The People’s Ledger: How to Democratize Money and Finance the Economy

Click on the link and Download the report. It's a doozie. Straight out of the Marxist handbook.

She proposes ending banks and giving everyone a direct account at the Fed. Here are some of her ideas.

Helicopter Drop - QE for the People 

Offering deposit accounts to individuals and entities will enable the Fed to modulate the aggregate supply of money and credit by directly crediting and debiting the accounts of all participants in economic activity, without interposing intermediary-banks. 

In basic terms, the Fed will credit all eligible FedAccounts when it determines that it is necessary to expand the money supply in order to stimulate economic activity and ensure better utilization of the national economy’s productive capacity.

In the economic literature, this form of unconventional (by present standards) monetary policy is commonly known as “helicopter drop” or “QE for the people.”

To maximize the economic stimulus of the helicopter drops, however, it may make more sense to have a progressive scale for crediting accounts of individuals, so that less wealthy U.S. citizens and eligible residents receive proportionately higher amounts of money.  

Implementing a contractionary monetary policy by debiting FedAccounts, in turn, presents a different set of ex ante institutional choices aiming to minimize the economic and political fallout from what is likely to be perceived as the government “taking away” people’s money.

National Investment Authority NIA

Filling the critical institutional gap between the Fed and the Treasury, the NIA would be tasked with devising and implementing a comprehensive national development strategy. 

In essence, it is envisioned as the modern-day equivalent of the Reconstruction Finance Corporation (“RFC”), the New Deal–era public institution that successfully led a massive nationwide capital mobilization campaign to aid Depression-struck sectors of the American economy. 

 Under the proposed scheme, one arm of the NIA would pursue a wide range of well-established credit-mobilization strategies: originating, guaranteeing, and maintaining secondary markets for loans to public and private parties that undertake publicly beneficial infrastructure projects. 

Another arm of the NIA would function as a hybrid of a sovereign wealth fund (“SWF”) and a private equity firm.

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Setting “Systemically Important Prices” Via OMO Plus

The third principal asset category on the Fed’s balance sheet will consist of a diversified portfolio of financial instruments acquired through the Fed’s expanded open market trading operations, or “OMO Plus. 

 Under this proposal, the Federal Reserve Bank of New York (“FRBNY”) would conduct regular purchases and sales of a broad range of securities and other tradable financial assets with an explicit view to modulating volatile swings in what has been defined elsewhere as “systemically important prices.”  

 OMO Plus trading will function as a far more nimble, granular, and continuous response to certain market movements potentially signaling concerning trends.  

There is only one aspect of her paper I agree with.

It is difficult to overestimate the profound systemic implications of this comprehensive transformation of the Fed’s balance sheet from the traditional “franchisor ledger” into the People’s Ledger.  

Indeed. This is the precise path to hyperinflation. 

Worst Financial Presentation In US History

Omarova presented the biggest collection of bad ideas in one paper for any cabinet nominee in history.

No one should be surprised at Biden's ability to find economic nut cases. The Progressive wing of the party finds them and presents them to Biden.

But in the past month, so much has been written about this loon, that one might have hoped Biden would pull the nomination.

If Manchin is aware of any of this, there is no way this nomination will fly. 

Bring on the vote. She's so obviously terrible that at least a handful of Democrats are likely to have enough sense to say no. 

Biden deserves to be humiliated for this asinine pick. 

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