Thursday, July 18, 2019



Merkel’s failed gambit about to bring paradigm shift to Germany


by Kenneth Schortgen, Rogue Money:

Despite the fact that Angela Merkel’s political party won the most seats in September’s national elections, her hopes of majority rule fell through over the weekend when the ‘Jamaican coalition’ came apart and left her with few options in trying to put together a government.  And in a very interesting response to the weekend’s failed proceedings in what should have been her 4th term in office as leader of the German people, Merkel decided that calling for new elections was a better choice than in trying to forge a secondary coalition with political parties that contain much more difficult opposing members.

“German President Frank-Walter Steinmeier says Germany is facing a situation unseen in decades after coalition talks failed. He warned of “great concern” across Europe if the “strongest country” in the EU can’t form a government.

“We are facing a situation which [we] did not face in the Federal Republic of Germany for almost 70 years,” Steinmeier said.”

— Russia Today

The primary reasons behind Merkel’s failed coalition attempts is that her political party, the Christian Democratic Union (CDU), lost more seats in September than at any time since she has reigned in office.  In Addition to this, political parties from the extreme right wing gained seats in the government they had not achieved since the end of World War II, which forecasts a shift in the political direction of the German people.

Thus the failure of the Jamaican Coalition gambit has left the Chancellor between a rock and a hard place as her inability to listen to the German people over the ‘refugee invasion’, as well as her inability to comprehend the growing anti-EU sentiment proliferating from within Germany amongst the worldwide populist movement, is leaving her little choice but to call for a new vote which could see her party lose a plurality outright, or at best bring about a new coalition partner to try to continue her hold over the government.

“Seeking her fourth term, Bloomberg reports that Merkel is “skeptical” about a minority government as it may not bring about necessary stability and is open to another so-called grand coalition with the Social Democratic party, she said in an interview with ARD television.

In the absence of an agreement to secure a majority in Germany’s Bundestag, “I’m certain that new elections are the better way,” she said.”

— Zerohedge

The fact of the matter is that Germany is experiencing the same political volatility it went through exactly 100 years ago when in the midst of World War I the people forced the abdication of Kaiser Wilhelm for a more Democratic form of government that would serve the German people rather than the monarchy.  And while Germany today is obviously not ruled by a King, but are instead under the thumb of a technocracy through which Merkel has ruled with for the past decade or more, demands for change are coming to the surface faster than anyone could have imagined.

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Shocker: Judge Roy Moore Opens Up 15 Point Lead After Accusers’s Stories Fall Apart!


by Tim Brown, Freedom Outpost:

It looks like the establishment’s dirty tactics backfired on them as US Senate candidate Judge Roy Moore has jumped 15 points in a PredictIt poll over his liberal Democrat challenger Doug Jones.

As accuser’s stories are falling apart, and as well they should after they remained silent for nearly four decades, Gateway Pundit reported:

Via PredictIt:

Before the Washington Post story broke, Roy Moore was almost a lock to win at 89 percent in PredictIt’s Alabama Senate race prediction market. After the allegations surfaced, Moore’s odds dropped to 59 percent that day. He remained a slight favorite over Doug Jones, who also saw a significant bump on the news, until Monday when a fifth woman came forward with allegations against Moore.

On Monday afternoon, for the first time in the race, PredictIt traders had Doug Jones in the lead at 47 percent to Moore’s 38 percent.

Moore has since regained a huge lead in the PredictIt market.

As of Saturday afternoon Conservative Republican Roy Moore was back up on top of Doug Jones in the Alabama race.

** This comes after several of the accusations against Roy Moore have fallen apart.

Later, on Monday afternoon, the numbers changed even more drastically to show Moore had a 15 point lead over Jones.

Consider that Moore has denied the allegations and even bowed to Sean Hannity’s ultimatum with reference to another allegation of a woman who claimed to know Moore.

I even have a man writing all sorts of people, including your’s truly, about how Moore is guilty and that he should drop out of the race and cut a deal with the Alabama GOP and blah, blah, blah, comparing Moore to Ted Haggard, Jim Bakker, Bill Clinton and others, only there is absolutely no comparison when one looks for any sort of evidence of Moore’s guilt, at least so far.

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In a Stunning Counter-Coup, Trump Has Turned the Tables On the Deep State


by Dave Hodges, The Common Sense Show:

Trump has turned the tables on the Deep State, for now.

Are they or aren’t they? Are several top government officials under sealed indictments or not? Have US marines landed at Langley to arrest Deep State operatives at the CIA headquarters. Is it true that key Deep State operatives have been roughed up in order to gain cooperation? Let’s see where the facts takes us on these topics.

Deep-Sourcing the Criminals

Much of the information that is in this article comes from two broad categories (1) open source intelligence information from which about 75{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of all intelligence comes from; and (2) the publicly disclosed “insider” information from many of my colleagues that has been made public. However, there is one piece of information that has been disclosed that has not been properly cited. I am speaking about Robert Mueller who has turned state’s evidence.

The Stunning SGT Report

The SGT produced a 12 minute video in which they revealed some of the strategy that has accompanied Trump’s counter-coup against Deep State operatives. The video documentary is very well organized, well-sourced and confirms much of what I already know to be true. However, the report is missing a couple of pieces of the puzzle that are essential to understanding that a state of civil war exists between the Trump administration and the majority of the American people against the subversive operatives of the Deep State and their radical followers.

In the following video, SGT alleges that Robert Mueller has led a plot, in conjunction with key members of the Trump administration that will soon turn the tables on the Russian collusion charges. The topic has to do with Clinton’s sale of nuclear grade uranium to the Russians.

As I reported in 2015, the uranium was seized by the BLM from ranchers and farmers in the West. The Bundy family would be one of these victimized families. The well done SGT Report did not report on this fact.

Here is an excerpt from 2016 in which I alleged with complementary documentation that Hillary obtained the uranium from American ranchers and farmers like the Bundy and the Hammond families.

Go to the youtube channel owned by dutchsinse. He makes a very compelling case that several ranches, not just Bundy’s and Hammond’s have been under assault in order to procure precious metals. In the following youtube video, dutchsinse asks the following question:

“Let’s just call it what it is. Human greed is at stake here. Who is going to get the gold back there in the back country? Who is going to get the uranium?”

One of the big problems in America today is that “public servants” like Hillary Clinton actually represent a foreign enemy masquerading as a domestic public servant.

I will go one step further than Donald Trump’s assertion that Clinton and state that Hillary Clinton is this generation’s Ethel Rosenberg.

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Inflation and Counterfeit Credit – Keith Weiner


by Keith Weiner, Sprott Money:

Let’s take a look at an often-repeated idea that is popular in the gold and alternative investing communities. The government possesses a printing press. Therefore, it will never default. It will just inflate its way out of the debt. It will devalue the dollar.

The government does not set the value of the dollar. And it has no mechanism to set it. So, logically, it has no mechanism to reset it. It cannot devalue it. In the same way, you cannot lower yourself down by your bootstraps since you are not lifting yourself up by them in the first place.

We must emphatically state that the government does not print. It borrows. Congress does not have a printing press, to create greenbacks. It has a Treasury that can sell bonds to cover whatever payments the government is obligated to make that it has not got tax revenues for. Over the past year, for example, the government increased its debt by over 630 billion dollars.

This leads us to inflation. We have a different view than the mainstream. We define inflation as the counterfeiting of credit. In legitimate credit, the borrower has both the means and intent to repay. But clearly in the case of perpetual government deficits, these elements are lacking. This is inflation. Not the changes that may result to consumer prices. Not the change in quantity of dollars. The fraud itself is the root of it, and therefore properly deserves the moniker inflation.

The Federal Reserve, of course, is a key participant in this monetary inflation scheme. Does the Fed have a printing press? Does the Fed print?

Like any bank, the Fed borrows to fund its purchases of interest-paying assets. It earns a spread between what it pays (currently about 1.25{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}) and what its asset portfolio pays (over 2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}). The commercial banks currently deposit over $2.1 trillion in excess reserves, and the Fed’s total liabilities are over $4.4 trillion including Federal Reserve Notes (on which the Fed pays zero). Unlike any commercial bank, there is a law that obligates us to treat the Fed’s liabilities as if they were money .

This last fact is what makes the inflationary scheme so dangerous (not the possible effect on consumer prices). The Fed borrows to lend to the government (and manipulate the interest rate). This means: the Fed’s liability, the dollar, is only good so long as the Fed’s asset, which is the government’s liability, is good. Please re-read that and think. This one statement is the undoing of much of modern monetary economics.

Of course, with the Fed’s liability being treated as money by nearly everyone—including those who oppose the existence of the Fed, and who speculate on alternative monetary assets like gold and bitcoin—the Fed is in a unique position. Demand for its liability is unlimited. That is, whatever it wants to borrow, willing lenders are lined up. Not only that, it gets better!

Last week, we said:

So let’s say you are a farmer in Iowa. What can you do about your debt? Grow and sell more wheat. That is, sell wheat at the bid price.

Suppose you are a restaurateur with 5 burger joints. What can you do? Cook and sell more burgers. That is, sell burgers on the bid.

If you are a recent college graduate, with college loans to pay off, what can you do? Work and sell more of your labor. That is, dump labor on the bid.

And we wonder what supports the value of the dollar! It is the struggles of the debtors. Every debtor is busily working to increase the quantity of every kind of good and service, which is dumped on the bid. Dumping on the bid tends to push the bid down.

People are not merely lined up to lend to the Fed, they are outdoing each other, frantically bidding up the Fed’s paper! This is because they, themselves, have borrowed and obligated themselves to repaying their own debts in the same said paper. To service their debts, they must sell goods and services.

And people wonder why little to no inflation. They are thinking only of the quantity of dollars, and assuming that as quantity goes up so must prices. However, a system which is sinking deeper into debt has dynamics that cause a different outcome.

So this brings us to the premise where we started: the government will just inflate its way out of the debt. The government can borrow more, but will this devalue the dollar?

Instead of reiterating a point we have covered above and in previous parts of this series, let’s look at a seemingly unrelated observation about markets. When all participants count on the same outcome, when they are all all-in, when they are all on one side of the boat hoping for this outcome, then you can count on the opposite outcome that all the participants are counting on.

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It’s TOTALLY possible: How to homestead when you’re flat broke


by Rita Winters, Natural News:

Most people interested in an independent lifestyle are wary of the costs that come with it. As intimidating as it may sound, homesteading is all about self-sufficiency, involving little to no money at all. Homesteading projects at home usually involve the whole family, and resources used are things that are readily available. A bench you make yourself may not look exactly like the one you found at that posh furniture store, but over time and with much practice, your projects will be just as aesthetically pleasing as well as functional.

Being rich helps, of course, but takes the fun and meaning out of homesteading. Instead of involving the kids in building the tree house, you’d instead hire some carpenters to do the heavy work for you. Basically, using loads of money to buy stuff for your home defeats the purpose of homesteading at all.

When it comes to building your homestead, there are only five things you need to have, and these will definitely bring you closer to a beautiful, efficient, and comfortable family home.

  • Resourcefulness – A beginner doesn’t really start out with nothing. Assuming you have your own house or apartment, you already have a lot of stuff around that you can use in building your homestead. If you have several dining tables in your current home, you can re-purpose some of them into an outdoor bench by sawing the legs shorter, or use them as an elevated platform for your saplings or plants. Resourcefulness is an incredible skill to have, especially when you want to minimize expenses as much as possible. It’s as simple as making the most of what you currently have around you, including what most people consider trash. A visit to the nearest junkyard with only $5 in hand would get you all the stuff you need to build your own chicken coop. Ask your neighbors for stuff they don’t need or are throwing out. But take note not to scavenge trash bins! Even if it is a trash bin, you’ll still need to ask permission from the home owner to go through it.
  • Creativity – The main difference between being creative and being resourceful, is that creativity is about the tendency to create or make, and resourcefulness is more of being clever or efficient with on-hand resources. Creativity was the force behind many of the greatest inventions and discoveries in the world, including fire. Most scientific discoveries are made by researchers and scientists who went out of the box, out of the norm, to create an explanation for something. Creativity is also exercised when trying to find other ways to make money (aside from your day job) that involves less time and effort, hence homemade goods usually sold by fellow homesteaders. Finding a means to create more money will help you fund the improvement of your homestead.
  • Determination – It’s simply a matter of respecting your decision to do something. Committing to your goals and dreams for your home, no matter what the difficulty may be, is determination. If you find yourself unwilling to do a task, remember your reasons for starting in the first place. When the time is almost up, your strong will and determination will bring you to the finish line. The intense want for something to be held firmly in your hands is what brings you to complete your homestead, with or without the money.
  • Optimism / Positive mindset – Homesteading without money isn’t a piece of cake, but is possible. If you say you want it and you believe you can have it, then you already win the game. Thinking negatively never helps, and speaking negatively greatly decreases your chance at success. Opportunities lie in every single crevice of life, and with a positive mindset and determination, you’ll finish your homestead without spending more than a few bucks, or none at all.

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Hyperinflation in Zimbabwe – It’s back, but maybe not for long

by JP Koning, GoldSeek:

When a nation adopts a foreign currency it will typically face significant hurdles when it tries to rid itself of that currency, or de-dollarize. But Zimbabwe’s autocratic ruler Robert Mugabe has appeared to have done the impossible. After dollarizing ten years ago, over the course of the last year or two he and his cronies have managed to throw off the U.S. dollar and re-introduce a Zimbabwean replacement.

We can see evidence of this new currency in Zimbabwe’s stock market. Below I’ve charted the country’s main equity index, the Zimbabwe Industrial Index, going back to 2011. What an incredible rise over the last year, right? Beware; these returns have nothing to do with real economic growth. Zimbabwean equities have switched from being claim on an a stream of cash flows denominated in U.S. dollars to a stream denominated in Zimbabwe’s new currency. Because investors expect inflation of the new currency to drive up future cash flows, they have responded by bidding stock prices up. In real terms (i.e. U.S. dollar terms), stock prices are probably flat–and may have even declined.

Dollarization and de-dollarization

Let’s back up a bit. For those countries that mismanage their currency, the penalty box has typically been some form of dollarization. The citizens of a nation grow so tired of the hyperinflating currency that they opt for an alternative, whether that is euros, dollars, or some other medium of exchange.

Dollarization is usually only partial, the mismanaged currency continuing to circulate–albeit to a lesser extent–in conjunction with a stable alternative. Zimbabwe is unique in being one of the few countries to fully dollarize. By late 2008 the hyperinflation of the Zimbabwe dollar had become such a burden that Zimbabweans–without the permission of the Mugabe regime–threw their local currency notes into the gutters and adopted the U.S. dollar as their sole medium of exchange and unit of account.

Do you prefer to own 200 trillion dollars or do you prefer to own gold?

In 2016-17, the reverse has happened. Before I go into how the new Zimbabwean currency was introduced, it should be emphasized how difficult it is to replace an existing currency with a new one. Currency usage is locked in place by tradition and broad acceptance. Even when a national currency is doing very poorly, any single individual will be loath to be the first to desert it for a more stable alternative. Money is only useful when many people are using it, and since any new money lacks a base of users, it faces the paradox that it cannot ever get jumpstarted. In the case of modern Zimbabwe, the communal benefits of using the U.S. dollar as the “language of trade” are significant, so any alternative should have faced a huge hurdle in gaining acceptance.

The birth of Zimbabwe’s new currency

That the new Zimbabwean currency managed to make it past this hurdle is a testament to the powerful combination of subterfuge, brute force, and good old Gresham’s law that overpowered the staying power of the U.S. dollar. What follows are the steps that led to this switch.

After the 2008 dollarization rendered it useless, the Reserve Bank of Zimbabwe (RBZ) sneakily got back into the money printing game in 2012 or 2013. Creating a new national currency from scratch would have been politically impossible; the population was still furious with its leaders’ previous monetary mistakes. So instead the central bank began issuing a U.S. look-alike. Domestic banks had the option–and later were required–to open U.S. dollar accounts at the RBZ. These accounts weren’t available to the public but could be used between banks to settle domestic payments flows. At first, the RBZ’s U.S. dollar deposits were as good as the real thing. Banks could easily convert them into U.S. paper currency.

As time passed, Robert Mugabe’s government drew down on the RBZ’s resources in order to fund a massive spending campaign. This depletion of the RBZ’s hard currency reserves eventually forced it to renege on its promise to commercial banks to redeem in dollars. Regular Zimbabweans only got their first sign of trouble in early 2016. Since commercial banks could no longer rely on the RBZ to convert its U.S. deposits into real U.S. cash, the banks had no choice but to pass their inability to get cash on to their customers. The ability of the public to withdraw cash from U.S. dollar accounts was steadily cut back until they could only take out $50 per day, leading to massive lineups at banks across the nation. With the convertibility promise having been betrayed, dollars held in the banking system ceased to be equivalent to U.S. dollars. They began to trade at a 5-20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} discount to genuine U.S. cash in the black market.

In November 2016 the RBZ introduced the bond note, its first issue of paper money since the old Zimbabwe dollar had expired worthless in 2008. (For more details, read my post on the topichere). As in the case of the accounts at the central bank, bond notes were supposed to be redeemable on demand into U.S. dollars. But this redemption promise proved to be a sham–and bond notes quickly began to trade at a discount to U.S. paper money.

Gresham’s law makes an appearance in Zimbabwe

Having duped the population into accepting RBZ-issued dollar notes and deposits, the government proceeded to declare its new currency legal tender. This meant that any creditor who had lent out U.S. dollars was obligated by law to accept payment in bond notes at par. At the same time, the authorities required retailers to treat all payments media as equivalents–they could neither discount the inferior currency nor accept the superior currency at a premium, the penalty being seven years in jail.

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Why Leftists Always Win


from Stefan Molyneux:

Money and Markets Infographic Shows Silver Most Undervalued Asset


by Mark O’Byrne, Goldcore:

Money and Markets Infographic Shows Silver Most Undervalued Asset

– Silver remains severely under owned and under valued asset
– Entire silver market worth tiny $100 billion shown in one tiny square
– “All of the World’s Money and Markets in One Visualization”

– Must see ‘Money and Markets’ infographic shows relative size of key markets: silver bullion, gold bullion, cryptocurrencies/ bitcoin, largest companies, 50 richest people, Fed balance sheet, currency, stocks, property, cash, debt & derivatives
– Small allocation by investors and world’s richest will see silver surge like bitcoin

by Visual Capitalist

Millions, billions, and trillions…

When we talk about the giant size of Apple, the fortune of Warren Buffett, or the massive amount of global debt accumulated – all of these things sound large, but they are actually extremely different in magnitude.

That’s why visualizing things spatially can give us a better perspective on money and markets.


This infographic was initially created to show how much money exists in its different forms. For example, to highlight how much physical cash there is in comparison to broader measures of money which include saving and checking account deposits.

Interestingly, what is considered “money” depends on who you are asking.

Are the abstractions created by Central Banks really money? What about gold, bitcoins, or other hard assets?


However, since we first released this infographic in 2015, “All the World’s Money and Markets” has taken on a different meaning to us and many others. It’s a way of simplifying a complex universe of currencies, assets, and other financial instruments in a way that people can understand.

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Buy Into An Asset Bubble Before It Becomes A Bubble


by Dave Kranzler, Investment Research Dynamics:

Let’s face it, the trillions of fiat currency printed by Central Banks globally, which has been compounded by an even greater amount of debt issuance derived from the printed currency, has fomented multiple assets bubbles of historic proportions. Bitcoin is a bubble. The FANG stocks plus Tesla, among dozens of other daytrader and hedge fund momentum darlings, are bubbles. Novo Resources, for now, is a bubble.

Rather than buying into today’s bubble valuations, real money can be made anticipating the next asset bubble sector. Please note that I consider cryptocurrencies to be de facto fiat currency because they share many similar attributes with electronically produced Central Bank currency. When the fiat currency experiment fails, which it will (please see Voltair, et al), the next bubble will form from the race out of fiat money into real money – gold and silver. The bubble will not be gold and silver. The bubble will be the derivatives of gold and silver: mining stocks.

William Powers, of, invited me onto to his program to discuss the precious metals market and investing in junior mining stocks. Junior mining stocks are extraordinarily undervalued and will likely be the next great asset bubble – Bill and I discuss why and several other topics:

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Uber’s Survival Strategy? “Tens of Thousands” of Self-Driving Volvo-Ubers Starting in 2019


by Wolf Richter, Wolf Street:

Ready or not, here they come. Tough luck for drivers.

Uber is desperate. Its business model may not allow it to ever make money as long as it has to pay human drivers, spend massive resources to recruit them, and deal with the fallout when they cause problems. So it has been furiously working on self-driving technologies. And now it’s taking a small-scale experimental program to the big league – not decades down the road but starting in 2019.

Volvo Cars, which is owned by China’s Zhejiang Geely Holding Group Co., announced today that it has signed a “framework agreement” to sell Uber “tens of thousands of autonomous driving compatible base vehicles between 2019 and 2021.” The announcement added:

Our aim is to be the supplier of choice for AD [autonomous driving] ride-sharing service providers globally. Today’s agreement with Uber is a primary example of that strategic direction.

Volvo will supply the XC90, a luxury SUV, which seats up to seven passengers:

The base vehicles incorporate all necessary safety, redundancy and core autonomous driving technologies that are required for Uber to add its own self-driving technology.

The XC90 has a starting MSRP in the US of just over $45,000. Some versions are already available today with self-driving features, such as collision avoidance systems for low-speed accidents and systems that keep the vehicle in its lane and maintain the proper distance to the vehicle in front.

Financial details were not disclosed. Uber is going to get a big discount for a fleet purchase of this size, but it will also have to pay extra for whatever autonomous driving technologies that Volvo might preinstall. So this is not going to be cheap. If Uber pays $40,000 per vehicle, a fleet purchase of 24,000 vehicles – the number now being kicked around – would amount to nearly $1 billion.

Volvo also said that it will continue to develop its own technologies to pursue “its own independent autonomous car strategy, which is planned to culminate in the release of its first fully autonomous car in 2021.”

Uber and Volvo have been working together on self-driving vehicles for a while. In August 2016, Uber started testing specially-equipped XC90 models in Pittsburgh, though they still had an Uber employee in the front seat. It expanded its testing to Tempe, Arizona, and California.

But tests were briefly halted after an accident in Tempe in March this year. A vehicle driven by a human driver failed to yield, according to Police, and slammed into the test vehicle. These incidents are trotted out to show how self-driving technologies don’t work, when instead they should be trotted out to show how human drivers don’t work.

Humans are terrible drivers. Human drivers in the US caused 40,000 traffic fatalities in 2016. Self-driving technology doesn’t have to be perfect. It just has to be a lot less terrible than human drivers. That’s the promise.

The agreement with Volvo “puts us on a path towards mass produced self-driving vehicles at scale,” said Jeff Miller, Uber’s head of auto alliances, cited in Volvo’s press release.

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Saying Goodbye to Richard Cordray at CFPB Is Hard to Do


by Pam Martens and Russ Martens, Wall St On Parade:

Last Wednesday, Richard Cordray, the Director of the Consumer Financial Protection Bureau (CFPB), announced he would be stepping down from his post at the end of this month. Cordray is the former Attorney General of Ohio and there are rumors he may make a run for Governor there.

The CFPB, a Federal agency, was created under the Dodd-Frank financial reform legislation of 2010. The legislation resulted from the greatest fraudulent wealth transfer from the middle class to the 1 percent since the Wall Street frauds of the late 1920s. Both periods ended in an epic financial crash that left the U.S. economy on life support. Since the financial crash of 2008, the U.S. economy has grown at an anemic 2 percent or less per year despite massive fiscal stimulus and unprecedented bond purchases (quantitative easing) by the Federal Reserve.

Despite the desperate need for the CFPB, Republicans fought against its creation and then refused to confirm Cordray for his post as Director for two years. Cordray was finally sworn in on July 17, 2013 after having served in the post for 18 months under a recess appointment by President Obama. Republicans have continued to battle Cordray and attempt to derail his work in protecting vulnerable consumers from credit card, student loan and mortgage frauds.

Big banks on Wall Street are particularly hostile to the fact that the CFPB allows consumers who have been victimized by financial firms, even where small amounts of money are involved, to file a complaint and receive a timely response. Wall Street also hates the fact that these complaints go into a permanent database, which can be mined by class-action attorneys and prosecutors looking for patterns of fraud. That database is likely to be one of the first things to go under a Trump appointee.

Wall Street On Parade has covered Cordray’s herculean efforts on behalf of those without a voice in America and the insidious efforts of Congressional Republicans and Wall Street lobbyists to derail his work at every turn. Today we look back on what the CFPB has accomplished for defrauded Americans and the assaults made against it.

In July of this year, the CFPB issued its final rule to allow consumers who have been defrauded in financial transactions involving credit cards and bank accounts to have access to file a group action (known legally as a “class action”) using the nation’s courts. Wall Street banks have been running a private justice system for decades, known as mandatory arbitration, which bans both customers and employees from taking claims to court. The U.S. Senate reversed the rulemaking in September with Vice President Mike Pence casting the deciding vote to break the 50-50 tied vote. (See also: House Republicans Rig Hearing to Block Consumers from Going to Court.)

In August, the CFPB issued a critically important report on the nefarious peddling of reverse mortgages to senior citizens as a bogus means of allowing them to collect a larger Social Security benefit by delaying payments to a later age. The study reported the following:

“The CFPB examined different scenarios and found that, in general, the reverse mortgage loan costs exceed the cumulative increase in Social Security that homeowners would receive in their lifetime by delaying Social Security benefits. Furthermore, using this strategy will likely diminish the amount of home equity available to borrowers later in life. As a result of the diminished equity, borrowers that seek to sell their homes after using this strategy may have limited options for moving to a new location or handling a financial shock.”

No member of Congress has bullied the CFPB and Cordray more than Jeb Hensarling, the Republican Chair of the House Financial Services Committee. Hensarling’s largest donors for his 2016 political campaign were Wall Street firms and trade associations. Hensarling has consistently attempted to portray the CFPB as a “rogue” federal agency instead of the tough consumer protection agency that it is. In February, the Wall Street Journal ran an opinion piece by Hensarling with the headline: How We’ll Stop a Rogue Federal Agency: Congress can defund Elizabeth Warren’s unaccountable and unconstitutional CFPB.” (Senator Elizabeth Warren had been instrumental in designing the structure of the CFPB in the face of fierce opposition from Wall Street.)

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