Rep. Paul Ryan is 100% correct when he stated yesterday that: “There is nothing more insidious that a country can do to its citizens than debase its currency.” He spoke these words to Federal Reserve Chairman Ben Bernanke who was appearing before the House Budget Committe, which Rep. Ryan now chairs. Rep. Ryan took Chairman Bernanke to task over the Fed’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.
“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,”
Rep. Ryan’s serious and justifiable concerns about the possbility of continuing this quantitative easing are also shared by some of Chairman Bernanke’s Fed colleagues, as the article notes:
However, in New York, a senior Federal Reserve official on Tuesday raised red flags about continuing the program.
“Barring some unexpected shock to the economy or financial system, I think we are pushing the envelope with the current round of Treasury purchases. I would be very wary of expanding our balance sheet further,” said Richard Fisher, president of the Federal Reserve Bank of Dallas.
What does this have to do with our own Rep. Woolsey? Several things. For the most part, she has little to say about our country’s monetary policy, and that, especially now, is not a subject about which any member of Congress ought to be uninformed or should ignore. Lynn Woolsey needs to understand the severe consequences that can befall a nation that deliberately debases its own money. She needs to be as willing as Rep. Ryan to challenge the Fed when its monetary policy is not in our best interests. She does not have to be on the Budget Committee herself to play a role in seeking to rein in Chairman Bernanke. Every member of the Congress (House and Senate) has the right speak up and to take action. Last year, Rep. Woolsey, along with 320 other House members, did co-sponsor Ron Paul’s “Audit the Fed” bill initially, but the bill “was gutted” by a subcommittee before passage and a Senate version also did not meet the original legislative aims of finally calling the Fed to account (currently the Fed operates independently of both executive and legislative branch oversight), so no “audit” was authorized last year. Lynn Woolsey, by the way, did not vote yes or no on the legislation when it came up for a vote. Now, Rep. Ron Paul and his son, Sen. Rand Paul, are again working to pass the original “Audit the Fed” bill. I urge Rep. Woolsey to again co-sponsor this original version and to actively lobby her Progressive colleagues to support it too. This is something she can do to prevent the Fed from sending us into an inflationary spiral or, worse, causing a complete meltdown of our currency. Please, Rep. Woolsey, do your part as a U.S. lawmaker to protect our dollar. That last thing we need is to see it crash and burn: