Not surprisingly, Elizabeth Warren, Democrat senator from Massachusetts and ranting politician with a knack for blowing smoke up everyone’s backsides, is promising she knows about “The Coming Economic Crash and How to Stop It.”
I’ve recently covered Warren’s actions on her antitrust attack on big tech. Read on here what I see this leadership will bring to investors, and it’s not good.
That’s because she predicted the last economic crash, she says. And, she sees into the future.
While her history of predictions is what it is – revisionist history – she only ever made general statements about the economy and housing as far back as 2003, 2004, and 2005, years before the real bubbles were inflating. Then she got on the bandwagon as the bubble became main street news, this time she’s sure another crash is coming.
Talk about fear mongering. Is that all she’s got to offer America?
No, that’s not all.
She’s also telling us how to stop the next crash.
Here’s what Senator Warren is warning about, how she’d prevent it, and why her cure is a million times worse than any economic illness that may temporarily give the economy hiccups…
Warren’s Proposal Is a Quick No for Me
The Senator and would-be president says:
Reduce household debt: To put our economy – and our families – on firmer ground, it is essential to reduce household debt both by raising people’s wages and by bringing down their costs. That is the heart of my economic agenda. We can raise incomes by increasing the minimum wage to $15 an hour, strengthening unions, ensuring that women of color get the wages they deserve, and empoweringworkers to elect at least 40% of board members at big American corporations. We can reduce costs and slash household debt by cancelling up to $50,000 in student loan debt for 95% of people who have it, bringing down the cost of rent, providing universal affordable child care and early education for all our kids ages 0-5, and making tuition free at every public technical school, two-year college, and four-year college.
Perhaps the Senator hasn’t really thought this through. Let me break down some of her points for you.
Raising the minimum wage sounds like a good plan, unless you’re an employer. As wages rise, employers will find ways to displace workers with technologies increasingly designed to do exactly that.
Strengthening unions so they can strike and demand more money and better benefits, whether they deserve it or not, or whether the company they’re impacting can afford it or not, isn’t 21st century thinking on any economic or reality level. Unions are dead for a reason.
Empowering employees to elect 40% of boards of public companies, heck why not private companies too, is socialism at its core. We’ve seen how that works out. It results in a collectivist mentality, where the employees eat the profits of the subject company until there’s nothing left to cannibalize.
The pension industry is sitting on a massive, $6 trillion lie – and Congress won’t own up to the truth. Now, that lie has become a silent killer for the retirement dreams of millions of Americans. Here’s what you need to know.
Simply put, Warren’s plan is to turn America socialist.
Pure socialism, of course, would demand free education and debt relief to 95% (why not 100%) of Americans. Is Warren, by executive order, going to cancel school loan debt, or have a government fund pay it off?
Either way, that’s a transfer of wealth, and it will be the taxpayers, especially the ones that socialists consider to be richer, that are going to pay for the free higher education tuition Warren wants to give out.
Monitor and reduce leveraged corporate lending: In response to the 2008 crisis, Congress created the Financial Stability Oversight Council – made up of the heads of the financial regulatory agencies – to monitor risks that cut across different markets. The risks of leveraged lending are exactly the kind of thing FSOC is supposed to monitor, but the Trump-era FSOC is falling down on the job. It should meet specifically to discuss these risks and announce a plan for addressing them. Federal regulators should also enforce leveraged lending guidance that is intended to stop banks from issuing these risky loans in the first place.
In other words, Warren wants government boards to run a “command economy,” so there’s no falling down on regulating free markets into slavery.
Strengthen manufacturing: We need policies that reverse the manufacturing job losses of the past twenty years by investing in manufacturing instead of undercutting it. My Green Manufacturing Plan will mobilize our industrial base by making a $2 trillion investment in American green research, manufacturing, and exporting over the next decade. This will create more than a millionhigh-quality jobs and help address the existential threat of climate change.
In other words, spend $2 trillion researching what “green” means and giving it all out to constituents for votes.
Warren goes on to say:
Limit potential shocks to the economy: With a vulnerable economy, we should be reducing the odds of potential shocks that could push us into a downturn. The Trump Administration should stop pushing for a no-deal Brexit and start planning for how to insulate the American economy if that occurs. It should replace the trade-war-by-tweet with China with a coherent strategy – working with our allies – to respond to China’s trade tactics. We need to invest in strengthening critical American industries, instead of undercutting American companies. And we should take the prospect of breaching the debt ceiling off the table forever by either eliminating it or by automatically raising the ceiling to accommodate spending and revenue decisions authorized by Congress.
Warning lights are flashing. Whether it’s this year or next year, the odds of another economic downturn are high – and growing. Congress and regulators should act immediately to tamp down these threats before it’s too late.
It’s a good thing she knows exactly what a no-deal Brexit will look like. It’s a good thing she knows what a coherent China strategy looks like. It’s a good thing she wants to eliminate the debt ceiling so politicians can spend as much as they want to buy votes.
It’s a good thing Senator Warren is running for President.
That’s because her scare mongering shows us how much she’s willing to spend to get herself elected, how her liberal way is a socialist way, and how scary her plan to save us from our capitalist democracy really is.
Warren really just wants her voters to profit by raising the taxes even higher on everyone, but I on the other hand support a way for anyone to make another source of income completely tax free.
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