Scott Bessent shows Fauxcahontas Warren’s financial acumen is as fake as her ‘Indian’ heritage

Elizabeth Warren leveraged her claimed Native American heritage into a Harvard Law professorship based on her expertise in finance and banking. While there, she became Harvard’s highest-paid professor, even as she and her husband did well in real estate. If her own finances were anything to go by, she knew what she was doing. And of course, Harvard was her springboard to the U.S. Senate.

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However, a single DNA test eventually revealed that Warren was not only not Native American, but she was one of the least Native American people in the world, with at most 1/1024 of her DNA tied to the tribes. Now, thanks to a scathing letter from Scott Bessent to Warren, we’ve learned that Warren’s knowledge of financial matters is as fraudulent as her claimed genetic history.

I should add that I have a historic grudge in this fight, because Warren was my banking law professor when she was still a white woman teaching at the University of Texas at Austin School of Law. I found her impenetrable in the classroom, and spent way too much time in her office trying unsuccessfully to get her to put her oracular pronouncements into something approaching logical English.

Warren became politically significant during the Obamacare debates because Warren was part of a series of studies claiming that around 62% of bankruptcies could be classified as “medical.” It turned out, though, that medical bills might have been the straw that broke the camel’s back for many families, but they were not the primary debt driver. More sober analyses that identified medical debt as the primary driver said the correct figures ranged from 4% to 17% to, at most, , depending on the studies’ focus.

Still, those farcical, careless figures made Warren a player, and, in 2012, she was elected to the Senate on her promise to reform America’s banking system. From her perch on the Senate Banking Committee, where she’s now the ranking member, she did re-form, rather than reform, some of our financial systems. That is, she reshaped them, but not for the better.

Warren’s biggest initiative was the Consumer Financial Protection Bureau, a completely independent agency dedicated to policing mortgages, credit cards, student loans, etc. In 2020, the Supreme Court held that the Act was unconstitutional insofar as it was independent of the Executive, but the CFPB lives on.

According to the White House Council of Economic Advisors, between 2011 and 2024, Warren’s pet “pro-consumer” project cost consumers $237 billion to $369 billion in fiscal costs, higher borrowing costs, and reduced loan originations. Just the excess paperwork alone (29 million hours per year) requires around $2.5 billion annually to pay extra workers. Warren sure is a financial genius.

But it’s Scott Bessent who has really ripped back the curtain, exposing the kind of uninformed, leftist economic idiocy that drives Warren’s policies and increasingly leftist rhetoric. It began on August 13, when at the fact that the Trump administration took steps to help stabilize the Japanese yen. Japan, of course, is currently a strong U.S. ally.

Warren framed her objection by claiming, among other things, that the money was a loan (it wasn’t), that America’s loaning money to prop up a foreign currency had practically never occurred before (which means other administrations have done it, including Bill Clinton’s), that the administration was abusing taxpayers by acting without other Western banks (we need their permission).

Our Treasury Secretary was not amused and, to use a coarse expression that’s quite accurate, he “bitch slapped” her. He not only exposed her ignorance, but he introduced Americans to a new word: “sciolistic,” which means displaying a superficial or pretended knowledge. That sounds exactly right:

The rest of the tweet says:

… market literacy to spot her remedial error.

To reiterate: under @POTUS, the United States delivers for America’s trusted partners.

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For a fuller explanation, I recommend Senator Warren take any entry level course in international finance for her and her staff, or I can personally give her a tutorial on Foreign Exchange for Dummies. Although I am not holding my breath, I hope her next letter will demonstrate that she has learned the difference between a currency purchase and a swap or a loan.

(I’ve included the text of the letter at the end of this essay.)

Bessent was right not to hold his breath waiting for an intelligent reply. Warren, like the Emperor himself, having been exposed as wearing no clothes, resorted to childish taunts and deflection because she had no substantive response:

Back in the mid-1980s, Warren impressed me as a mediocre thinker who used intellectual-sounding doubletalk to mask the fact that there was no “there there.” Her real brilliance lay in selling herself as some sort of financial genius. It’s truly lovely that thanks to Bessent, Warren’s foolish leftist banality has been laid bare for all to see.

Image created using AI.

Scott Bessent’s August 27, 2026, letter to Elizabeth Warren

I am in receipt of your August 13 letter, which unfortunately reveals that you know even less about foreign exchange markets than you do about banking. Terrifyingly, the opening paragraph is wrong about where the money came, what the transaction was, and whether there was even a borrower. What is equally shocking, but not surprising: not a single member of your media mob has a rudimentary-enough level of financial market literacy to spot your remedial error.

Treasury exchanged existing Exchange Stabilization Fund foreign-currency assets for yen. No new congressional appropriation was involved, and no credit was extended to Japan. Japan owes Treasury nothing. There is therefore no risk that Japan will fail to repay a debt that does not exist.

You state that it is “not clear” how preventing disorder in Japan benefits the United States. As your letter notes, Japan is a major holder of U.S. Treasuries. It is also a critical trading partner and a treaty ally. Disorderly yen markets can trigger forced unwinds, which could destabilize global markets and ultimately raise borrowing costs for American families and businesses. For a fuller explanation, I recommend any entry- level course in international finance for you and your staff, or I can give you a tutorial on Foreign Exchange for Dummies.

The same principle was at work in Argentina, where Treasury used the Exchange Stabilization Fund to stabilize Argentina in its moment of acute, short-term illiquidity and to prevent the problem from becoming a broader regional crisis. The best-managed crisis is the one that never happens. You, by contrast, appear to view preventable crises not as failures to avert but as welcome opportunities to expand government control- with ordinary Americans paying the price.

Your legal question is answered by the statute cited in your own footnote. Section 5302 expressly authorizes the Secretary, with presidential approval, to deal in foreign exchange in support of orderly exchange arrangements. Treasury’s legal analysis begins with reading the statute. I recommend you try the same.

The American people deserve oversight grounded in facts rather than slogans. Although I am not holding my breath, I hope your next letter will demonstrate that you have learned the difference between a currency purchase and a swap or a loan.

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