Louisiana Senator Compares Modern Banks to ‘Sophisticated Ponzi Schemes’

Louisiana Republican legislator John Kennedy precocious stated successful an interrogation published connected Wednesday that the U.S. Federal Reserve whitethorn request to summation the national funds complaint to 8-10% to code the country’s inflationary pressures. Kennedy’s remarks travel aft helium criticized the Biden medication successful mid-March for bailing retired Silicon Valley Bank and Signature Bank, emphasizing that the determination to marque each depositors full “was a bail out,” careless of what it was called.

Senator John Kennedy: ‘Powell’s Gonna Have to Raise Rates Much Higher Than He Normally’

During a caller interrogation with CNBC, Louisiana Republican legislator John Kennedy expressed his content that the U.S. cardinal slope volition request to summation the benchmark slope complaint from its existent level of 5% to astir 8-10% to combat inflation. Kennedy went connected to state that Federal Reserve president Jerome Powell volition person to rise rates overmuch higher than accustomed if Congress does not dilatory down its stimulus spending.

On the aforesaid time that legislator John Kennedy made his remarks, the U.S. Federal Reserve increased the benchmark slope complaint by 25 ground points (bps), marking the tenth consecutive complaint hike and bringing the complaint to its highest level successful astir 16 years.

In summation to discussing inflation, Kennedy besides addressed the contented of the debt ceiling, calling for president Biden to person a superior speech with House talker Kevin McCarthy (R-CA) astir however to allocate resources and trim inflation. According to Kennedy, it’s clip for the leaders to person an “adult discussion” astir this captious issue.

Kennedy added:

I don’t deliberation you tin bash it without reducing the spending and debt.

Kennedy Compares Modern Financial Institutions to Pyramid Schemes

Senator John Kennedy besides addressed concerns astir the U.S. banking industry, informing that modern exertion tin rapidly crook a tiny disturbance into a full-blown panic. According to Kennedy, banks contiguous trust heavy connected trust, and are acold little fortified than they utilized to be. In fact, Kennedy went truthful acold arsenic to comparison modern fiscal institutions to pyramid schemes, stating that they are fundamentally “sophisticated Ponzi schemes.”

“They’re truly conscionable … and don’t instrumentality this the incorrect mode … blase Ponzi schemes,” Kennedy emphasized.

U.S. Treasury caput Janet Yellen precocious warned that the state could look a imaginable default connected its indebtedness bounds successful June, which could person dire economical and fiscal consequences. With the United States presently carrying a staggering $31 trillion successful debt, the stakes are high.

However, Republicans are refusing to rise the indebtedness ceiling unless definite mandates connected greenish vigor and clime alteration are repealed from the Inflation Reduction Act. Senator John Kennedy’s caller comments connected the contented travel connected the heels of his criticism of president Biden’s handling of the illness of Silicon Valley Bank and Signature Bank successful mid-March.

What bash you deliberation astir legislator Kennedy’s comments? Do you hold oregon disagree with his assessment? Share your thoughts successful the comments conception below.

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