Diary

Obama gets more Fed appointments (What could go wrong?)

Barack Obama gets more Federal Reserve appointments (3 seats out of 7). Just what you want–a leader drunk on spending in control of the currency.

From the New York Times:

Vice Chairman of Fed to Retire, Letting Obama Reshape Board
By SEWELL CHAN
Published: March 1, 2010
WASHINGTON — The vice chairman of the Federal Reserve announced on Monday that he would retire in June, giving President Obama an expanded opportunity to put his stamp on the central bank as it faces a difficult balance between heading off inflation and addressing high levels of unemployment.

The departure of the vice chairman, Donald L. Kohn, a 40-year Fed veteran, means Mr. Obama has three seats to fill on the Fed’s seven-member board of governors at a time when the central bank is weighing how aggressively to reverse the easy-money policy it pursued during the financial crisis and recession.

The vacancies are likely to spur debate over the Fed’s priorities. With unemployment near 10 percent and projected to remain high for years to come, there is sure to be pressure on the administration, especially from liberals, to nominate Fed governors willing to adhere not just to the central bank’s mission of price stability but also its mandate of full employment, a goal that has effectively taken a back seat to inflation fighting over much of the last three decades.

From the Wall Street Journal:

MARCH 2, 2010

Fed Vacancies Clear Path for Obama
Vice Chairman Kohn to Depart in June, Increasing Openings on Board to Three
(…)
The opportunity comes at a delicate moment. The Fed is under political attack for its failure to prevent the financial crisis and the way it helped bail out the banks, and it is confronting the task of deciding when and how to raise short-term interest rates and drain the extraordinary amount of credit it pumped into the economy.

If Mr. Obama and the Senate move swiftly—and the White House press secretary, Robert Gibbs, said Monday that the president hopes to have a successor to Mr. Kohn confirmed by June—new Fed governors could influence the timing of the Fed’s eventual move to raise interest rates. “It’s almost inconceivable that the [policy-making Federal Open Market] Committee will become more hawkish,” said Laurence Meyer, a former Fed governor. In Fed jargon, hawks are those more worried about inflation and more eager to raise rates.

Adding three Obama appointees also could influence the stance that the Fed takes on issues beyond interest rates from the strength of consumer-protection rules to the size and powers of the nation’s biggest financial institutions, provided Congress continues to give the Fed the task of regulating them.

Here’s a WSJ comment to keep you happy:

The number of bureaucrats and politicians escaping the sinking ship is increasing.
The Fed’s protection of the bankrupt banks and money printing to create bubble after bubble, will turn into a disaster that will lead to more money printing.

You can’t print trillions of dollars to fund wars, bolster poor investments by banks, and year after year increase the govt…and not have the mirage come crashing down.

Mr.Kohn you may escape out of the memory of some, but the people who really know whats going on in this country will not forget.

Hyper-inflation, here we come.