Ron Paul: The Banks Still Win in Washington!

Elizabeth Warren: Credit Czar or Bankster Puppet?

by Ron Paul

This past week the administration announced its choice for the first credit czar at the new Consumer Financial Protection Bureau. This bureau was created as part of the supposed Wall Street reform bill recently passed by Congress. This new bureau, which represents nothing more than another layer of useless Washington bureaucracy, will be housed within the Federal Reserve — one of the most anti-consumer institutions in Washington.

The appointee named to run the bureau is an Ivy League professor. By her own admission she is an academic, not a business person. She has very little real world business experience with the highly complex financial instruments she will oversee. The administration has done nothing to refute her characterization by some in the financial press as an anti-business, ivory tower leftist with an aversion to free market principles.

She also admits to being told, or warned, that the big banks always win in Washington – yet she trumpeted the creation of this new agency as a win against those banks. I would caution her against declaring victory too soon.

Outrageously, she has been appointed as a “special advisor” to design and lead the bureau, but the administration has not disclosed the exact length of her term. There will be no Senate confirmation hearings, nor will the public or the financial industry be allowed to comment on her appointment. We simply are expected to accept the appointment of an enormously powerful regulator without question, and without regard to the constitutional requirement that the Senate advise and consent with regard to her appointment. This means you, as a voter and citizen, effectively have no say whatsoever for the duration of her appointment. In the meantime, she has unprecedented new powers over private business decisions.

The truth is that this new bureau is just more of the same ineffective and damaging regulation we typically get from a crisis. Just as the FDA serves big pharmaceutical companies, not patients, and just as the SEC serves Wall Street, not investors, this agency will end up serving the banks. All regulatory agencies eventually become co-opted by the industries they regulate, and they become chiefly concerned with restricting the entry of new competitors and protecting market share for the big players. This new bureau is not likely to straighten out Wall Street, so much as it will instill a false sense of security in the public about banking and investing again.

No bureaucrat, no federal agency, and no ivory tower academic can replace the regulatory powers of the free market. “Caveat emptor” remains the rule for intelligent investors and depositors. Buyers always need to beware, especially when politicians say they have it all under control.

Real reform starts with transparency and an adherence to the rule of law. The administration would do well to adhere to the law, rather than shoving a new economic czar down our throats without congressional involvement. Real reform would mean taking steps toward restoring sound money and getting back to the Constitution. The Constitution does not allow for favors to special interests, or handing out public money to keep private businesses afloat. The Constitution necessitates a small, impartial government that first and foremost, protects liberty, and sees all citizens as equal. It does not recognize a special banking class. The fact that measures to achieve these ends are still quashed tells me that indeed, the banks do still win in Washington.


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  • Seems like not many here are familiar with Ms. Warren, if you were you would know she will be very effective in protecting the working stiffs of this country, or what was once referred to as the middle class.

    Look her up on YouTube, she is one tough customer.

    Good night and good luck.

  • Douglas

    A properly executed US Constitutional Currency system of Issuance is supposed to be governed by the People for the People. This is a Humane Interaction of Necessity, not a Mathematical Formula. Mathematical Formula can help show the State of a System but cannot predicted or establish the ongoing needs of a People.

    When a currency is properly issued into society under the US Constitution it represents ALL the Constituents involved. Thus safeguarding improper issuance, Fractional Reserve Banking, and provides only the necessary amount of currency needed to properly expand the Peoples Economy.

    This exposition of mine will naturally stop over production and over consumption which will result in a balanced economy without inflation or deflation.

  • Just what we need another Harvard Professor! I guess Obama must be friends with those people, simply that he went to same elite university with them! We need people that don’t wear suits and that are like us! Ron Paul was proven right again that our Government is an empire of Kings and Queens that think that they know what we need and want! Which they do not! We want our prosperity and Liberty back to us!

  • Guy

    I agree with you Korey Mateer. Government beuracracies main concern is the protection of their own self interests, like gaining power and keeping their jobs.

    It just looks like the same old BS from Washington.

    It’s up to the congress of the United States to step up and regain control of the federal government and strip the President of all non Constitutionally endowed powers.

    It’s interesting that in Jimmy Carter’s intertview on 60 Minutes last night that he said many congressman would come to him and say if you support my bill, I’ll support yours. When he would reply no, they would say “Well, that’s the way business is done in washington.” So the government is not a government of the people, for the people, It’s a government of deals made by our elected officials pushed by special interests with no regard for the people.

    Congressman Paul is certainly right in his assesment that the FDA serves big pharma.

    It’s time for a Revolution to dismantle the Federal Government and put it back within it’s constitutional boundaries.

    It’s time to make our own fuel and stop the wars over control of oil.

    It’s time to stop borrowing money from other countries and pay off the loans.

    It’s time to stop supporting other governments and take care of our own.

    It’s time to elect Ron Paul as President of The United States.

  • Garry Owen

    Ron Paul is correct in his assessment. This administration needs people with real life experience to tackle the problems we face today, not the yes people who continue to ruin our nation. Sadly, enlisting talented people who understand the problems and the best solutions is out of the mind set of the present administration. It is time for “We the People” to speak loud and clear.

  • Lindsey

    Warren is a bank puppet. No doubt about it!!!!! Another Harvard elitist!!!!!!

  • Korey Mateer

    The Federal Reserve is a problem but it is a single institution.

    A greater problem is ALL federal institutions combined! Here is a simple list. I am sure anybody can add to it:

    1.) SEC
    2.) FDA
    3.) IRS
    4.) EPA
    5.) DEA
    6.) ATF
    7.) FBI
    8.) CIA
    9.) NSA
    10.) ICE (the newest of the bunch, created to fight those evil illegal aliens!)

    These institutions have at least two critical things in common:

    1.) They’re all funded with taxpayer money.

    2.) They need to thrive and persevere, at least they believe so, and for this reason they get bigger and acquire more power in order to protect and secure themselves.

  • Citizen

    Its very clear that these Progressive Marxists are doing everything they can to eliminate “In God We Trust

    And replacing it with their brand of “Government Trust”
    The kind you can Trust as far as you can throw it.

    These Marxists must really believe that we are ALL STUPID Undocumented Democrats who believe this drivel.

    Yes… it is time for CHANGE WE CAN BELIEVE IN… and BHO ain’t it!

    Ron Paul for 2012
    Enforce the Constitution,
    End the Fed
    And make Gold and Silver LEGAL TENDER

  • Citizen

    “Caveat emptor”
    Especially with regards to our Progressive Socialist Government.
    Hey… where’d my government blankie go???
    Whaaa, I want my government cheese!

  • Ross

    “Credit Czar or Bankster Puppet.” Ron is pulling no punches.He must be feeling really confident.Such disrespect Ron for the money changers of deception who Jesus went into a rage and evicted from the temple with a whip.

    I’m with Ron.If we lose this fight,war and a new dark age is beckoning or we could well be on the cusp of a new renaissance of enlightment and prosperity.

    I truely admire your courage and integrity.

  • Mr. Handey

    I would never encourage anyone to go to an Ivy League school. You won’t learn anything about real life in the Ivy League. All you will do is pay more for a useless education and your mind will be forever warped. It’s funny that the most “prestigious” schools in America can’t even promote a free-thinking approach to learning. Let’s be honest here…Woodrow Wilson was president of Princeton University, and he had to be about the stupidest human being to walk the earth in a position of power. After all, he got a lot of Americans killed in WWI, then he was treated like a second-class citizen at Versailles. I’d like to dig him up just so I could slap the lips right off his skeleton.

  • Ty

    I pray our fellow Americans realize that this is more proof of how the government is attempting to take the power from the “We the People”. Do they think we have forgotten so fast about government bailouts of said banks, yet they create a bureau to “enforce the toughest financial protections” (B.Obama, Sept 17, 2010)? Having a government bureau as a financial advisor to the consumers is like having a thief preaching to the congregation.

  • Citizen

    “another layer of useless Washington bureaucracy”

    Another Nanny State solution to “take care” of you and me.
    Gosh, I can hardly wait!

  • gfcardi

    Another Harvard professor…just what we need. In the words of Bill Buckley Jr, “I’d rather entrust the government of the United States to the first 400 people listed in the Boston telephone directory than to the faculty of Harvard University.”

    PLEASE, Dr. Paul, run for President in 2012 and begin to restore our United States to greatness!

    • jim

      I have never heard that one before …. hilarious!!!

  • Unfortunately, no matter how much Obama tries to spin it, this has nothing to do with a “potentially contentious confirmation” but rather everything to do with Geithner winning the battle to marginalize her.


    Elizabeth Warren on Way to Being Sidelined as Head of Consumer Protection Agency, Relegated to “Advisor” Role