February 6, 2012
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.
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.