President Joe Biden on Monday vowed to enact rules to prevent banks from collapsing after inflation, fueled by the Biden administration’s energy policies, caused increased interest rates meant to tamp down Biden’s soaring price hikes.
One day after taking credit for inventing a new mechanism intended to provide liquidity “to help assure banks have the ability to meet the needs of all their depositors,” Biden promised new rules to prevent the bank failures.
“I will ask Congress and banking regulators to strengthen the rules for banks to make it less likely that this kind of bank failure happens again,” Biden’s Twitter account posted. “We must protect American jobs and small businesses.”
It was not immediately clear what policies his administration will enact to counter the bank failures, caused in part by hiked interest rates to reduce soaring inflation, fueled by Biden administration policies that reduced American energy independence.
It is also unclear what measures Congress can enact to head off the root cause of the bank collapses. Biden made no mention of proposing changes to his energy or monetary policies.
According to a 2022 Strategic Petroleum Reserve study previously reported by Breitbart News, Biden’s war on American energy will cost the United States nearly $100 billion in output every year, which translates to between two and three million barrels of oil a day.
Biden’s war on American energy includes driving up private and public financing costs of oil drilling, halting drilling on public lands, and canceling the Keystone pipeline.
The manufactured energy crises caused prices to rise in 2022. According to Bloomberg, inflation cost American households on average an extra $5,200 in 2022, or $433 per month.
Biden’s promise to prevent further bank failures under his watch comes as extraordinary measures were taken to quickly erect a new mechanism, dubbed the “Bank Term Funding Program,” before markets opened Monday.
“At my direction, @SecYellen and my National Economic Council Director worked with banking regulators to address problems at Silicon Valley Bank and Signature Bank,” Biden’s Twitter account posted Sunday. “I’m pleased they reached a solution that protects workers, small businesses, taxpayers, and our financial system.”
The new mechanism protects deposits beyond the $250,000 FCIC insurance limit. The cost of the protection will allegedly not be transferred to taxpayers, Biden promised on Monday.
“No losses will be borne by the taxpayer,” he said. “We’ll pay for it from the fees that banks pay into the Deposit Insurance Fund.”
“We must get a full accounting of what happened and why so those responsible can be held accountable. In my Administration, no one is above the law,” he claimed.
Follow Wendell Husebø on Twitter @WendellHusebø. He is the author of Politics of Slave Morality.