February 6, 2012
Not only was Obama’s appointment of Richard Cordray to the misnamed Consumer Financial Protection Bureau (CFPB) unconstitutional, but the newly minted federal leviathan itself is in direct violation of Constitution, specifically the Tenth Amendment.
In January, Obama thumbed his nose at Article 2, Section 2 of the Constitution. It states that the president “shall nominate, and by and with the Advice and Consent of the Senate, shall appoint” officers to the government.
But as Ron Paul notes in the above video, the new agency – founded under the Federal Reserve dominated Dodd-Frank Wall Street Reform and Consumer Protection Act – is itself an unconstitutional monster that will further degrade the financial health of the country.
Cordray will act as a czar answerable not to the American people, but his masters at the Federal Reserve. Like an EU or Soviet era committee, the CFPB will be run by unelected commissars who will exercise extraordinary power. The agency is part of the Federal Reserve and its budget is not subject to congressional control or oversight.
On January 4, the agency began to regulate nonbank services, including debt collection, consumer reporting, prepaid cards, debt relief services, consumer credit and money transmitting, check cashing, and related activities. It claims the authority to supervise any nonbank that it decides may pose a “risk” to consumers or engages in “unfair, deceptive, or abusive” practices.
In other words, the CFPB will micromanage a large sector of the economy and punish supposed violators not based on law, but rather supposition of harm and political priorities.
The CFPB is another bankster scam protected under the cloak of the Federal Reserve. The financial crisis did not result from lack of regulation over consumer financial products and services. The CFPB is simply another power grab by the bankster cartel masquerading as consumer protection.
“Giving impetus to the CFPB’s creation was the poor reputation of Wall Street banks and financial firms that developed as a result of the financial crisis,” Paul explains. “Banks which received trillions of dollars of taxpayer-funded bailouts turned around and shafted their customers by foreclosing on homes, raising credit card interest rates, and introducing numerous new fees.”
“But rather than keeping Wall Street in check as its proponents allege, the CFPB will end up placing further restrictions on the ability of Main Street Americans to engage in productive financial endeavors,” he continues. “Current law already allows only the richest Americans to invest in potentially lucrative ventures such as hedge funds because such investments are deemed to be “too risky” for the average American to invest in. The government in its paternalistic wisdom treats American investors as too stupid to know what to do with their own money, and “protects” them, supposedly, by keeping them poorer than they otherwise would be. We can expect even more of this once the CFPB is running in full stride.”
Not surprisingly, the establishment media has completely ignored this story. It is their job to make sure you don’t find out what the CFPB is all about and demand it be stopped immediately.
If the government really wanted to protect consumers, it would dismantle the Federal Reserve system, reintroduce honest money and break up the criminal bankster cartel.