Warsh won’t say Trump lost in 2020, won’t name one policy he disagrees with, and can’t explain what 1% rates would do. This is our next Fed Chair.
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Donald Trump’s Fed Chair nominee Kevin Warsh spent two hours dodging every meaningful question in his Senate confirmation hearing, and Peter Schiff watched the whole thing so you didn’t have to. Warsh refused to say whether Trump lost the 2020 election, wouldn’t name a single Trump policy he disagreed with, and couldn’t answer the obvious question of what 1% interest rates would do to consumer prices — even though he’d already admitted inflation comes from government spending and money printing.
Before breaking down the hearing, Schiff delivers a history of the Federal Reserve that most economics PhDs have never learned: why the Fed was created as a private bank to issue superior banknotes backed by 40% gold, how the original act prohibited the Fed from owning treasuries, and how World War I opened the door to everything wrong with monetary policy today. He also takes aim at MicroStrategy’s Strategy preferred stock as a textbook Ponzi scheme — Saylor can only pay the 11.5% yield by selling new shares, and the fine print lets him stop paying whenever he wants.
Chapters:
00:00 Cold Open and Intro
00:57 Warsh Nomination Stakes
02:34 InvestingPro Sponsor Demo
07:32 Why Fed History Matters
08:08 Before the Fed Era
11:12 Fed Independence and Constitution
14:00 Superior Banknotes Explained
17:40 Outskill Sponsor Break
21:47 Elastic Money Supply Myth
25:49 War Finance and Treasuries
32:16 Hearing Reactions Begin
33:05 Trump Spending And Inflation
34:02 Warren Attacks And Rate Cuts
35:17 Warsh Denies Being Puppet
36:34 Fed Praise And Wealth
38:16 Price Stability Redefined
41:15 Dodging Trump Questions
43:45 One Percent Rates And QE
46:06 Inflation Tax And Deficits
47:00 Fed Chair And The Dollar
49:54 No CBDC Crypto Pandering
50:46 MicroStrategy Ponzi Rant
54:20 Lawyer Evasions And Politics
57:34 Warsh Verdict And Gold Pitch
01:02:11 Final Wrap And Signoff
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