Time to Focus on the Fed: Oppose Peter Diamond's Nomination

Say no to the advocates of failed Interventionist policies.

The Democrats have a penchant for advancing their big government dreams through the insidious use of unelected members of government.  To that end, Obama has nominated radical ideologues to judgeships and executive agencies since the beginning of his presidency. 

Another unelected body of the federal government that is rapidly becoming a fourth branch is the Federal Reserve.  Due to the vitality of their creeping economic interventions, Obama is seeking to pack the Board of Governors with radical Keynesian stimulus supporters.  His latest nominee, Peter Diamond, will be voted on by the Senate Banking Committee on Thursday.

While our fiscal policy is formulated by 535 members of Congress, our monetary policy is set by 7 unelected members of the Board of Governors of the Federal Reserve System.  In recent years, Fed Chairman Ben Bernanke, with the support of Obama, has used the power of the Fed to implement destructive monetary stimulus policies that have benefited Obama's Wall Street donors at the expense of the American consumer.  The Fed has weakened the dollar to the extent that import price inflation has spiked 11% since last year.  Obama might ramble about not raising taxes on the middle class, but he has used the unbridled power of the Fed to induce the most deleterious tax of all; inflation.

Last week, we advocated that Congress reign in the Fed's rouge policies by repealing their mandate to intervene in economic policy.  The most immediate concern, however, is to ensure that radical Keynesian stimulus supporters like Peter Diamond are blocked from becoming Governors.

Diamond, an economics professor at MIT, has long advocated for the very big government fiscal and monetary interventionist policies that are so inimical to our economic recovery.  He has even called for a second stimulus.  If confirmed to the Fed, he would undoubtedly seek to accomplish that through monetary policy, even though he has little experience in that realm.  We don't need a second fiscal stimulus to exacerbate our debt and we certainly don't need a third monetary stimulus (QEIII) to service that debt with printed money.

This is where Senate Republicans come into play.