Joe Biden March 23 Flashback 

Joe Biden Slush Fund

Biden objected to letting the Fed run a Leveraged Slush Fund for businesses. 

March Flashback

The New York Times had this interesting March Flashback.

At the heart of the impasse in the Senate has been a $425 billion fund created by the bill that the Federal Reserve could leverage for loans to assist broad groups of distressed companies, and an additional $75 billion it would provide for industry-specific loans. They also argued the measure as written by Republicans would give Mr. Mnuchin too much discretion to decide which companies receive aid, calling the proposal a “slush fund” for the administration.

Newsweek quoted Biden "Trump And McConnell Are 'Trying To Put Corporate Bailouts Ahead Of Families'"

It was not just Biden. 

Democrats lobbied hard against inclusion in the March Covid package but ultimately it was included in the deal.

And guess who voted for it. Her first name begins with E.

Official Denial

I’ve heard people refer to this as a slush fund. It’s not a slush fund,” said Treasury Secretary Steven Mnuchin on Fox News.

Translation: It's a slush fund. The unusual feature is it would be run by the Fed. 

Most of that money went unspent. On November 19, Treasury Secretary Steven Mnuchin wrote a letter to Fed Chair Jerome Powell, asking the Fed to return the unused funds.

Instant Howls

Some might think that Democrats would be thrilled to kill a slush fund they blasted back in March but they would be wrong.

RECOMMENDED ARTICLES

Those who railed against the slush fund in March suddenly wanted it in November as noted by Bloomberg.

Republicans in Congress have used that to argue that they are no longer needed and the billions of dollars sent to the central bank to set them up can be deployed better elsewhere. Democrats, as well as the central bank, say that removing the safety net of these programs as the virus surges again through the country is not a good idea.

Paying for More Covid Relief

The Wall Street Journal gets to the heart of the hypocrisy in Paying for More Covid Relief

Senate Democrats last week pounded Mr. Mnuchin because he dared to recall the money. Sherrod Brown, who would run the Banking Committee in a Democratic Senate, berated him and claimed he is “trying to sabotage our economy on the way out the door.”

Former Elizabeth Warren aide Bharat Ramamurti, who is now on the Covid-19 Congressional Oversight Commission, recently tweeted what has become the new Democratic Party line: “The CARES Act bars the Treasury from making ‘new’ investments in Fed lending programs at year-end. It doesn’t say the Fed programs must stop making new loans or purchases at year-end. Mnuchin’s decision to end the programs was purely discretionary.”

Joe Biden also slammed the Fed programs as a “$500 billion slush fund for corporations with almost no conditions.”

What Happened?

  1. As long as it is their economy not Trump's economy benefitting from the slush fund, the Democrats want it.
  2. The election did not quite go for Democrats as planned. 

Democrats expected to pad seats in the House and win the Senate giving progressives like AOC, Elizabeth Warren, and Bernie Sanders plenty of scope to make all kinds of demands. But guess what?

Dead on Arrival

Reality has set in: Biden's Progressive Agenda is Dead on Arrival.

Suddenly, Democrats demand a slush fund they did not want in March while Republicans don't want a slush fund they did want in March.

Expect more reversals exactly like that one because they are coming.

Election Side Note

Video tweets have gone viral alleging Democrats hid suitcases of ballots under desks and brought them out to count when they thought no one was looking. 

The claims have been debunked over and over with fact checks of what happened. 

Here is a reality check.

Mish