Friday, March 18, 2011

Relationship of Monetary Policy and Rising Prices

Hearing of the Domestic Monetary Policy and Technology subcommittee, March 17, 2011.


"It is unconscionable that published government statistics mislead Americans regarding the true rate of price inflation, which is much higher than commonly-reported CPI numbers," Paul stated. "It is also unconscionable that Federal Reserve Bank officials continue to deny the effects of their monetary expansion on consumer prices. Inflation, properly understood, is a monetary phenomenon. The price inflation Americans suffer today is largely the direct result of relentless monetary expansion by the Federal Reserve over the past decade. Our witnesses will explore how current monetary policy, including QE2, directly impacts the standard of living of Americans in ways that are not reflected in official government data."

Congressman Walter Jones, vice chairman of the subcommittee, stated, "The Fed has attempted to convince the public that its money printing campaign is necessary to stimulate America's economic recovery. Instead of recovery, the real effect of the Fed's money printing has been monetization of America's exploding fiscal deficits, devaluation of the dollar, and creation of inflation in asset prices across the board. As a result, working people in places like Eastern North Carolina are being squeezed at the gas pump and the grocery store as they struggle to make ends meet in a world in which their salaries have no chance of keeping up with Mr. Bernanke's printing presses."


No comments:

Post a Comment

If the post you are commenting on is more than 30 days old, your comment will have to await approval before being published. Rest assured, however, that as long as it is not spam, it will be published in due time.

Related Posts with Thumbnails