Bachmann & Perry criticize the Federal Reserve

[Maimonides]

http://www.newsmax.com/InsideCover/bachmann-bernanke-perry-federal/2011/08/16/id/407579

Looks like Bachmann and Perry are trying to win over Ron Paul supporters.

Republican presidential hopeful Michele Bachmann took aim at the Federal Reserve on Tuesday, after rival candidate Rick Perry caused a storm with fierce criticism of Fed chairman Ben Bernanke.

"I've been fighting on that issue since I came into Congress," Bachmann told reporters after a stump speech to about 300 people at a drive-in restaurant in South Carolina.

"The Federal Reserve is not subject to transparency. The Federal Reserve has made terrible, grievous errors," she said, criticizing the U.S central bank's quantative easing programs of buying government bonds to lower interest rates and boost the economy.

"I wrote letters to Secretary of the Treasury Tim Geithner and to Federal Reserve Chair Ben Bernanke and called on them not to release that money," Bachmann said. "The president has reduced the soundness of the dollar and the dollar has lost 12 percent of its value, according to experts, since President Obama came into his position."

The White House denounced Perry on Tuesday for using inflammatory rhetoric to criticize Bernanke.

Perry said on Monday he would consider it "treasonous" if Bernanke were to undertake another monetary stimulus program before next year's election, a sign of the political heat the Fed faces as it tries to strengthen the economy.

The White House said it was important for the Fed to remain independent and jabbed back at the famously outspoken Texas governor.

Bachmann, the leader of the Tea Party caucus in the House , won the Iowa straw poll on Saturday in the first big test of the 2012 Republican nominating race.

Her campaign in South Carolina is not against Perry, she said, but against Obama.

"Rick Perry will run his campaign the way he wants to and I'll run my campaign the way that I will, and I think those distinctions are evident," Bachmann said.

[Kahane-Was-Right BT]

I don't agree with this.  I think Bachmann is too insistent about inflation.  (she frequently mentions people's savings turning to sawdust).  There is also a threat of deflation.   The economists at the fed are aware of balancing both threats along with the other economic problems currently facing us.   I don't doubt that quantitative easing was necessary.   And probably another round will be necessary and it is bernanke's way of trying to save us, whether it will work in the longrun or not, it's probably necessary for the shortterm while the economy still needs to right itself and begin real growth.   Obama's policies are what is dangerous to the economy, NOT the federal reserve.   But I will say, not a bad idea to give the paulites a different cult to join.

[briann]

http://www.newsmax.com/InsideCover/bachmann-bernanke-perry-federal/2011/08/16/id/407579

Looks like Bachmann and Perry are trying to win over Ron Paul supporters.

Thats exactly right.  And honestly, its a very smart marketing move.

[briann]

I don't agree with this.  I think Bachmann is too insistent about inflation.  (she frequently mentions people's savings turning to sawdust).  There is also a threat of deflation.   The economists at the fed are aware of balancing both threats along with the other economic problems currently facing us.   I don't doubt that quantitative easing was necessary.   And probably another round will be necessary and it is bernanke's way of trying to save us, whether it will work in the longrun or not, it's probably necessary for the shortterm while the economy still needs to right itself and begin real growth.   Obama's policies are what is dangerous to the economy, NOT the federal reserve.   But I will say, not a bad idea to give the paulites a different cult to join.

Well, yes and no.  I think quantitative easing was necessary to ensure there wasn't severe deflation and a collapse of the banking system.... .but beyond that, printing money is NOT the answer.

Like I said before, printing money to promote lending in our current economy is nonsense and will backfire.  The Banks arent lending out the money that is being printed, it just goes into storage, and once the economy legitimately stabalizes, that extra storage will cause horrific stagflation that will go on for years, until somebody finally puts the breaks and tightens the money supply...... BUT the problem is... putting the breaks on it will cause a severe economic contraction... the more excess money that was printed, the more extreme that contraction will be..... So we have basically painted ourselves into a corner.. but I would rather have that severe contraction now rather than later.

I actually heard an economist echo this as well.  He said.. the best-case scenario is a severe double dip recession.   The worst scenario is a lost decade of stagflation which could ultimately lead to a collapse of our country when coupled with our growing debt problem.

[Rubystars]

I think it's kind of weird the money is printed by a private group like the Federal Reserve rather than the government. If any of the rest of us do it then it's called counterfeiting. Strange how that works.

[Lewinsky Stinks, Dr. Brennan Rocks]

I don't agree with this.  I think Bachmann is too insistent about inflation.  (she frequently mentions people's savings turning to sawdust).  There is also a threat of deflation.   The economists at the fed are aware of balancing both threats along with the other economic problems currently facing us.   I don't doubt that quantitative easing was necessary.   And probably another round will be necessary and it is bernanke's way of trying to save us, whether it will work in the longrun or not, it's probably necessary for the shortterm while the economy still needs to right itself and begin real growth.   Obama's policies are what is dangerous to the economy, NOT the federal reserve.   But I will say, not a bad idea to give the paulites a different cult to join.

You don't think it's scary and weird that an uber-powerful, quasi-governmental, quasi-private institution that operates more or less independently from all checks and balances controls the U.S., and much of the world, economy?