Michele: 'Does anyone honestly believe adding inflation would be a good thing?'Posted: November 03, 2010 7:55 pm Eastern
By Joe Kovacs Â© 2010 WorldNetDaily
Fresh from her victory in last night's election, U.S. Rep. Michele Bachmann says she begged the Federal Reserve not to go ahead with controversial plans to monetize the national debt, and is calling its purchase of hundreds of billions of dollars in Treasury bonds "a disaster" for America.
The U.S. central bank, hoping to create growth in the sluggish economy, decided today to proceed with its scheme, buying $600 billion of federal government debt over the next eight months.
Officials also indicated they were ready to purchase even more bonds if inflation remained too low and unemployment too high.
"This is a very serious move by the Fed," Bachmann, a member of the House Financial Services Committee, told radio host Glenn Beck today. "What this means is intentionally the Federal Reserve will be spiking inflation. They think that's good for the country. Does anyone honestly believe adding inflation would be a good thing to the country? Well, the Federal Reserve does. This is a disaster."
"Every bit of it that they monetize the debt will mean a reduction in the value of the dollar," she added. "We're looking now potentially at losing 20 percent of the value of the dollar if they go forward with this. I wrote a letter several weeks ago to the Federal Reserve Chairman Ben Bernanke and begged him not to do this."
In her Oct. 14 letter, the Minnesota Republican told Bernanke the policy move was "clearly less preferable than improving our nation's economy through responsible fiscal policy that consists of decreased government spending and lower rates of taxation and a constrained regulatory regime that operates within the boundaries of prudence and reasoned self-restraint."
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