“Those radical MAGA Republicans are putting the economy on the precipice of collapse. Because they want tax cuts for the rich, they are holding the debt ceiling hostage.” That is the battle cry of a failing President who can only prop himself up by tearing down Trump and all Republicans. I wrote this week about the truth that we are more than halfway through Biden’s term as President, and he is not ready to accept the responsibility of the job. It is embarrassing that Biden can go before the American people, in effect, the people of the world, outline a problem that he did not foresee, has no plan to correct, but blames the former President, and then walk away without answering questions. Blaming Trump is this President’s mic drop.
President Biden has a proposal to forgive student loans for anyone with an active loan and pass that expense onto the backs of every American. These loan credits will go to people who spent $50 Plus Thousands per year and now may have six-figure salaries. How is that not a tax cut for the rich? Of course, it is at the expense of the middle class, which has no option or skin in this game.
On Monday, before the Markets opened after the weekend collapse of two of America’s banks, Biden went to the microphone to offer the richest of Americans in Silicon Valley a handout. The FDIC insures all deposits in American banks up to $250,000. Biden went a step further to guarantee every penny of every account, with the cost passed onto all banks as a special assessment. Biden claimed that none of this cost would be the burden of taxpayers. That lie shows total ignorance of business practices and the real world.
The money to make all depositors whole may not come from government funds or paid directly with tax dollars, but he is naive if he thinks banks will absorb this cost. The banks will spread that burden to their customers through increased interest rates or fees. I wish that Biden had been as fast to help the victims of East Palestine as he was to promise aid to the richest zip code in the country. Maybe it has something to do with East Palestine being 70% Republican and Silicon Valley 70% Democrat.
The Fed was sleeping on SVB, as there have been signs of failure for two years. Had they done their job as regulators and intervened in the bad financial decisions of SVB rather than waiting for collapse, we could have avoided the need for a bailout.
They could have seen the writing on the wall when the board comprised of Clinton backers ignorant of the banking industry. Maybe the $73 Million given to Black Lives Matter in 2020, during the height of civil unrest, was a sign. Perhaps the $5 Billion invested in Climate sensitive companies and those pledging wokeness over profits could have raised an eyebrow. Not in this reactive administration.
Biden can blast Trump and stomp on MAGA Republicans, but anyone who listens and watches the actions and not the words can see right through this President. His handling of this crisis is indicative of his Presidency and why he will be a one-term President. When he should have been with his team dealing with this crisis, he was in California signing an executive order gutting the second amendment. That is the topic for tomorrow.