Larry Kudlow, the Former Director of the National Economic Council under Trump, recently gave a report that started out with bad news. The Federal Reserve decided to raise interest rates by 75 basis points on Wednesday.
Kudlow said that it was the right action to take, but it should have come sooner. He said that America was already in recession and it was because of Biden’s overspending and particularly on the infrastructure bill.
But it is what comes after this nasty news, in the last two minutes of the clip below, that became a bomb heard around the globe.
“China has infiltrated the Federal Reserve,” Kudlow said.
— America Reports (@AmericaRpts) July 27, 2022
Kudlow continued, “China has infiltrated Fed research assistants.”
He added that the Senate Homeland Security and Governmental Affairs Committee had been investigating this infiltration. And they now have a minority report that was headed by Sen. Rob Portman (R-OH).
The report indicates that the work of the Chinese was a broad-based espionage attempt that targeted the Federal Reserve and was connected to China’s Thousand Talents economic espionage program.
“A Federal Reserve counterintelligence analysis identified 13 persons of interest as having connections with known Chinese talent recruitment plan members or ‘having similar patterns of activity the [Federal Reserve] analysts deemed’ of potential concern,” the new report says.
It continues, “Federal Reserve investigators dubbed these individuals, representing no fewer than 8 of the 12 Federal Reserve Banks, as the P-Network.”
The Senate report says that China’s actions are “alarming” and they provide “stark examples of the ways in which the Chinese Government has attempted to gain access to sensitive internal information and influence.”
Portman said that he is concerned and he hopes this “wakes up” the Fed to the threat coming from China.
The worst part of this investigation is not knowing if Biden is even going to act on this because of his own possible compromise with China.
July 27, 2022