Liz Warren Tries to Blame Fed Reserve Raising Interest Rates, Evil Corporations for Recession – Opinion

We reported in late July that the Biden administration was refusing to use the “R” word (recession), after the U.S. economy shrank for the second month in a row. But the Federal Reserve bank and its chairman Jerome Powell swung into action, announcing mere days later they were raising the interest rate by the highest percentage in a while — 0.75 percent — in hopes of cooling consumer spending.

However, despite the obvious signs that this country is in recession, Democrats refuse to acknowledge it. Here’s just the latest example: Progressive Democrat Massachusetts Senator Elizabeth Warren are “worried” … that the Fed will “tip this economy into recession,” as she said on CNN’s “State of the Union” with host Dana Bash Sunday:

“I am very concerned that the Fed will tip this economy into recession.”@SenWarren(D-MA), reacts when Jerome Powell, the Federal Reserve Chair, signals forceful and swift action to combat inflation.@CNNSotu #CNNSOTU pic.twitter.com/U26EyB44Xc

— CNN (@CNN) August 28, 2022

Warren said:

I am very — I am very worried about this, because the causes of inflation, things like the fact that COVID is still shutting down parts of the economy around the world, that we still have supply chain kinks, that we still have a war going on in Ukraine that drives up the cost of energy, and that we still have these giant corporations that are engaging in price gouging, there is nothing in raising the interest rates, nothing in Jerome Powell’s tool bag that deals directly with those. When I asked him, he admitted that he had done so in the congressional hearings. Do you know what’s worse than high prices and a strong economy? It’s high prices and millions of people out of work. I’m very worried that the Fed is going to tip this economy into recession.”

She seems to be misunderstanding the problem; of course the Fed Chair raising interest rates doesn’t “deal directly” with the laundry list of things she says cause a recession — because they don’t cause a recession. And let’s remind the senator that COVID doesn’t “[shut] down parts of the economy around the world.” That would be those nation’s leaders, including the CCP, doing that. The U.S. cannot control what any other country does. As any leftist would, it is natural that she must take aim at these evil corporations.

Can we get rid of the argument that the conflict between Russia and Ukraine is a boondoggle for inflation? It’s getting old.

Warren appears to be unaware of the impact that giveaways such as the Biden executive orders on student loan forgiveness had We will not stop.Keep on destroying the economy.

“I see that hardworking families and middle-class families have received some relief right now.@SenWarren(D–MA) Discusses President Biden’s decision to cancel some federal student loan debts up to $20,000 to certain borrowers.@CNNSotu #CNNSOTU pic.twitter.com/NW0V1kCi8k

— CNN (@CNN) August 28, 2022

Her full answer to Bash’s question:

It is so wonderful to witness the changes. Right now, I see that hardworking families, families of middle class, and working-class people have some relief. This is how it should be viewed. Most of the relief that the president has given — remember, the majority of people are going to get $20,000 in student loan debt relief; 40 percent of the folks who have student loans do not have a college diploma, four-year diploma. These are people who are truck drivers and who are nail technicians and nurses’ aides. These people will get all of their debt forgiven. And that means they’re going to be able to build stronger futures for themselves and for their children. America should invest in hardworking, fair-minded people. Joe Biden did what Joe Biden is best at. His work has been a blessing for families.

Let’s break the numbers down. If 40 percent of these borrowers are not, as Warren calls them, “folks” with a bachelor’s degree, that means 60 percent are. I’m not math whiz, but I’m pretty sure that’s a majority of the people benefiting from this handout.

But is it really a surprise that, whether it’s on the recession and the Fed’s actions, she either misspeaks or twists the real numbers on this? That’s how neo-Marxists like Warren think. And the larger issue is this: If someone doesn’t understand the problem, how exactly can they come up with a solution?