An Open Letter To President Obama

Mr. President,

I am writing this letter to tell you respectfully that I disagree with your administration’s fiscal policies. I think we have had far too much stimulus, bailout, and “quantitative easing.” These policies have held the interest rates from the Fed at near zero for 32 months. Still…the unemployment rate is above 9%. This indicates a failure of Keynesian economics to produce the results it aims to produce. WE NEED A DIFFERENT PLAN!! The Federal Reserve is trying to get money for the government by selling 10-year Treasury bonds at 1.88% interest—who in his right mind is going to buy such a low yield bond? There is no profit in buying government securities.

Lately, Congressman Barney Frank has proposed stripping the Federal Reserve Governors of all membership in the Open Market Committee, leaving all the votes on that committee in the hands of political appointees. They only had four votes out of twelve, anyway; and if they are eliminated, I fear that all voice for tighter money on that committee will disappear.

Monetary policy should not be left up to politicians. I believe that private sector should have more, not less, say so on the Open Market Committee.