New Administration’s Nominee To Radically Change Banking And Lending

The White House has nominated Saule Omarova to head the Office of the Controller of the Currency, which is the branch of the Treasury Department most involved in banking. Omarova has promised to radically alter the banking and investment industries.

Born in the former Soviet Union, educated at Moscow State University, she wrote a university thesis entitled, “Karl Marx’s Economic Analysis and the Theory of Revolution in The Capital.” It’s no wonder that when members of the Senate Banking Committee had the temerity to ask for a copy of the thesis, they were refused.

Omarova has stated that most of the privatized banking industry should be moved into the hands of The Federal Reserve. Her vision is to centralize investment and banking, putting together a new federal institution called the National Investment Authority (NIA), that would be directly in charge of virtually all economic activity.

According to Omarova, the NIA would make the American economy,”more resilient in the face of shocks, big pandemics, big climate change, big whatever kind of shocks we experience that we have resources that we can mobilize and reapportion in the way we need it.”

To her thinking, the NIA would provide banking and investment services directly to industries and projects favored by the federal government. It would, again in her words, become “the asset manager, like a private equity firm, like a venture capital firm.”

Further, in her own words, the NIA would be a,”public entity that acts directly in financial markets and acts as a venture capitalist, as a private equity investor, as a lender, as a guarantor, as an insurer, to basically make it easier, not only for the public capital but for the private capital to flow into more sustainable industries rather than into the dying industries.”

This person scares me.

The concept of the Federal Government being in charge of my checking and investment accounts is frightening. The idea that this new agency would only lend to the types of projects that it prefers is worse.

I’m thinking of my older clients that are well into their seventies or eighties, operating businesses that are in older, dying industries. Imagine how impossible it would become for them to refinance their buildings or equipment under this new regime.

The fact that the new administration would ever put this person up for confirmation is the part that frightens me the most. We can only hope that she isn’t confirmed.

Let me leave you with this.

Many in the investment industry are predicting that this will be a long and difficult winter. Supply chain disruptions may make it difficult for many industries to show a profit.

It’s hard for many to make money from an empty apple cart.

Inflation is already a problem. When you add in supply chain difficulties and the scarcity of goods that will result, this will probably make inflation even worse. Further difficulties exist in the energy markets.

There isn’t much we can do about our investments, but we can do something about our companies.

Watch your numbers and get ahead of the problems. Sooner or later the American economy will adjust. Don’t be afraid to make your internal adjustments too.

Your numbers are more important than ever. Inflation and supply chain difficulties aren’t a good time on a Saturday night, but they can be managed.

We’re all going to get through this. Let’s get through it together.

Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,

Sincerely yours,

Chris Amundson
Accounting Solutions Ltd.

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