The Deaf Claque

Because they’re worth clapping for…probably…

Nuclear Iran: Consolidation of Power

Ali Larijani, Iran’s top nuclear envoy, has resigned. In sum,

“While the most immediate impact of the announcement bears directly on nuclear negotiations, which are supposed to resume Tuesday between Iran and the European Union, it also speaks to a broader consolidation of power for Mr. Ahmadinejad and his allies in domestic affairs.” (1)

Without respect to this specific nuclear situation, I’d like to make an observation about this move. This reminds me of the Bush Administration. There seems to be an overwhelming amount of this sort of consolidation of power in contemporary politics. Perhaps it stems from Western culture’s obsession with polarized duality. The mentality seems to be something like “It’s me against them; I need to get all the support I can to beat them.” The Bush Administration is no stranger to this and there have been countless examples in the mainstream media. There is one example, however, that I feel hasn’t gotten enough media coverage over the past 7 years.

The President has appointed the entire Board of Governors of the Federal Reserve, 7 (though 2 spots are currently vacant) of the 12 voting members of the Federal Open Market Committee (FOMC) since he has been in office. This is the voting majority, in case you couldn’t tell. Each member of the Board has a term of 14 years and it is set up so that one member’s term expires every 2 years. This spacing is intended to minimize executive influence on the Board. In short, the FOMC is in charge of monetary policy and here is what that means:

“The term ‘monetary policy’ refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals.” (2)

Generally, when people say that we don’t have a free market, this is arguably their strongest support (though I can’t speak for everyone). The Fed controls monetary policy which in turn affects inflation through the manipulation of the Federal Funds Rate etc…. It’s all very complicated but worthwhile to research. My point is this: Bush has appointed the voting majority of the people who control monetary policy.

I’m not insinuating that there is some conspiracy theory to control the market–I personally don’t find such theories particularly productive–, I just think it’s something people should know about. It doesn’t have much to do with Iran’s nuclear program but that’s where I took it, so there it is.


October 21, 2007 - Posted by | Economics, George W. Bush, Iran, Nuclear weapons | , , , ,

1 Comment »

  1. Is it a coincidence that Cheney has almost immediately called for tougher action in Iran, “Our country, and the entire international community, cannot stand by as a terror-supporting state fulfills its grandest ambitions.” The end is looming, again.

    Comment by Theo | October 21, 2007 | Reply

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