Word of the Day Online

The Latest...

My good Senator, Mark Warner, emailed me a copy of his recent editorial in the Washington Post titled "A Risky Choice for A Risk Czar" in which he lays out the case that President Obama's increased job description for Timothy Geithner and his Federal Reserve which he is proposing be tasked with regulating institutions deemed "too big to fail" is too big a risk. Warner's counter proposal is that a Systemic Risk Council be created including representatives from the Federal Reserve, the Treasury and other regulatory agencies. While I am not fully on board with either proposal I am glad to see that my senator is proposing alternative solutions.

Dear Hon Warner:

Thank you for emailing me your Washington Post editorial regarding creating a systemic risk council to oversee the Federal Reserve.

First, as a sidebar, I must take issue with your statement that we are currently in the longest and deepest recession since the Great Depression. If my BA in History was warranted, the Jimmy Carter era tops what we are seeing today - so far.

That being said, I am interested in learning more about your proposal to curtail the expansion of powers of the Federal Reserve of which I am in agreement.

In fact, I prefer a position that reduces the power of the Government as much as possible and returns the charge of economic stability to the People. The solutions to the current "fiscal crisis" as implemented by the Federal Government over the past 8 months have not resulted in a reversal of job losses, reduction in home foreclosures or improvement in consumer confidence. My guess is the upswing in stock prices in March will be written in history as a true "dead cat bounce" with further declines by this fall and increasingly unwielding interest rates and hyperinflation. Removing the Federal Government from the equation and instead relying on the market economy to fix the problem is the best solution, in my opinion. I realize this may give Government nothing to do, but that is more than likely, in the immortal words of Martha Stewart, "a good thing."

Notwithstanding, I am open to your suggestion of a Systemic Risk Council albeit with an independent chair not appointed by the President (who has no understanding of economics) but appointed instead by Congress. This will ensure that the voice of the People is at least entertained, if not heard. Obama has yet to prove himself a good listener - if a listener at all.

Thank you for thinking independently from our President - I am not an approver of the powers he has placed within Timothy Geithner's purview including control of the 2010 Census. Maybe you can do something about that too.

Regards,

WOTDO

Comments

Add New

RSS