Speaker of the House Nancy Pelosi (D-Calif.) has inserted herself into the negotiations on the Senate coronavirus stimulus package, and her efforts have thrown a monkey wrench into the process. House Democrats are pushing a bill titled the “Taking Responsibility for Workers and Families Act,” yet it should be retitled the “Using the Coronavirus Crisis to Push For Socialism Act.” It appears that the bill was an effort to give Senate Democrats some leverage to insert more of the Democratic wish list into the bill.
The “Squad,” led by Rep. Alexandria Ocasio-Cortez (D-N.Y.), is pushing for an idea that will socialize our banking system. Card-carrying member of this band of Democratic Socialists Rep. Rashida Tlaib (D-Mich.) is pushing for her “Automatic Boost” act to be included in any stimulus package that goes to the President’s desk. The problem is this idea is the opposite of an economic stimulus for the private sector, because it substitutes the government to administer a traditional banking function.
The Pelosi stimulus bill had a version of the Tlaib idea inserted into it. The bill suspends all consumer and small business credit payments such as mortgages and student loans. This will eliminate debt but will starve the banks of needed liquidity in this time of crisis. The Pelosi draft will also suspend all negative credit reporting, thereby giving people who do have the means an excuse not to pay debts. It also will establish a new government-run bank to help with liquidity for banks and prohibits debt collection. If you marry these restrictions with the new Tlaib idea, the banks will be marginalized, and government will become the new provider of banking for a large percentage of Americans.
The Tlaib legislation would expand upon the Pelosi bill that provides $2,000 a month for most adults. Her legislation would provide $2,000 to every person in America and another $1,000 monthly until 12 months after the crisis passes. This is an attempt to provide a Universal Basic Income (UBI) for all people residing in the U.S. This idea would provide $2,000 per child for an initial payment and would end up massively increasing our national debt.
The bigger problem is how they want to pay out the money. The Squad’s plan is to create a “U.S. Debit Card” administered, not by any bank, but by the Department of Treasury. The legislation allows these cards to be used to draw funds from banks and waives the fees associated with the distribution of the cards. This legislation would establish a national database of people in the program in an attempt to reduce the rampant fraud expected of such a program. They even want to use emergency responders to deliver the cards for people who live in more areas or are otherwise deemed “at-risk.”
The bill claims that it will not cost the taxpayer, because they just want the government to create the new money. The way they want this to work is for Treasury to create two new $1 platinum coins, then Congress will order the Fed to buy the coins. Next the Fed will credit the U.S. Mint with $2 trillion in new reserves. If this sounds to you like an accounting gimmick – it is. They basically just want to print a new $2 trillion in cash to pay for the program. There really is nothing to like about this idea.
The goal is simple: socialism in banking. If the federal government can create a new alternative banking system administered by the Department of Treasury, they can slowly destroy our nation’s banking system. The bottom line is that the left abides by the adage “Never let a serious crisis go to waste.”
The Squad wants to use the coronavirus crisis to insert some measure of socialism into our banking system – it’s important that the American people don’t let them.