Posted on 02/09/2011 12:51:56 PM PST by Ernest_at_the_Beach
House Budget Committee Chairman Paul Ryan challenged Federal Reserve Chairman Ben Bernanke’s policy of so-called quantitative easing – the printing of new U.S. dollars to buy government debt – and raised concerns that a weakened dollar and inflation could cause the loss of the currency’s global reserve status.
“There is nothing more insidious that a country can do to its citizens than debase its currency,” Ryan told Bernanke. “Chairman Bernanke: We know you know this. We know that you’re focused and concerned about this. The Fed’s exit strategy and future policy – it will determine how this ends.”
Ryan said he believed a “course correction here in Washington is sorely needed.”
“Endless borrowing is not a strategy,” he said. “My concern is that the costs of the Fed’s current monetary policy – the money creation and massive balance sheet expansion – will come to outweigh the perceived short-term benefits.”
“It is hard to overstate the consequences of getting this wrong. The dollar is the world’s reserve currency and this has given us tremendous benefits in the global economy,” Ryan said.
Bernanke, in his opening statement, defended the purchase over the last two years of almost $1.7 trillion in U.S. debt as having kept interest rates low and as having injected liquidity into the markets and the economy to sustain bank lending and consumer spending.
(Excerpt) Read more at dailycaller.com ...
Gold, silver, and short Treasury securities?
Sounds prudent.
Not to worry. Republicans are going to cut a whopping 38 billion of the spending. Are you kidding me?
Bernanke said a Federal Reserve study found that the QE [printing money] policy has created or saved as many as 3 million jobs.
I’d like to see that study.
Question? Can the Congress stop the Treasury from selling more Bonds to the Fed?
ANSWER:
“THE US GOVERNMENT AND EVRYONE WORKING FOR THEM LIES... WE CAN NO LONGER TRUST ANYTHING THIS GOVERNMENT SAYS OR DOES... we return you to tonight’s American Idol... in progress”.
LLS
I don’t know, but I doubt it. The Federal Reserve is independent.
That's probably true as this has kept interest rates from 12% range. Unfortunately, when the dam does break we will see 10 million jobs lost and 20+% interest rates for many years.
That's not how it works. The Treasury sells bonds to the Primary Dealers (among them are Goldman Sachs and JP Morgan Chase, and others). The Fed then buys them from the primary dealers with new "dollars".
Also if the Fed didn't buy them, then the primaries wouldn't buy them, then you'd have a failed bond auction and a situation like Argentina.
If Congress really wanted to stop the Fed from monetizing the debt, they'd quit deficit spending.
Well can the Congress stop Treasury from selling bonds to the primaries?
“Not to worry. Republicans are going to cut a whopping 38 billion of the spending. Are you kidding me?”
Well now I think its up to $72 Billion. Still a drop in the bucket.
At least 500 bil would be a step in the right direction. But by the time they got around to it the debt would go up more than 500 bil. I am thinking we are riding on a runaway train.
Legally? Of course. The problem is outside of the primary dealers, there are only the Treasury direct customers, who are by nature small purchasers (and maybe the foreign central banks)
That's no way to fund a 1.5 (and heading to 2) Trillion dollar annual deficit.
I am not interested in funding it. I am for defunding it and defaulting.
“At least 500 bil would be a step in the right direction. But by the time they got around to it the debt would go up more than 500 bil. I am thinking we are riding on a runaway train.”
I’m with you. Time to stock up on beans and bullets.
Why didn't you say so. In that case. Just don't pass any increases in the debt cieling. And we default in March or April.
That is my hope. A dose of reality is needed.
I know. Amazing is it not. These Young Guns are like the “Three Amigos” movie.
The devaluation will continue for perhaps two more years.
The die is already cast
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