Tuesday, September 20, 2011

"Dear Chairman Bernanke" Please do a thread Ed.

"It is our understanding that the Board Members of the Federal Reserve
will meet later this week to consider additional monetary stimulus proposals.

...we submit that the board should resist further extraordinary intervention in the U.S. economy,
particularly without a clear articulation of the goals of such a policy,
direction for success, ample data proving a case for economic action
and quantifiable benefits to the American people.

Should an entity partly responsible for creating systemic risk
be charged with regulating it?

It is not clear that the recent round of quantitative easing undertaken by the Federal Reserve
has facilitated economic growth or reduced the unemployment rate.

...Although the goal of quantitative easing was, in part,
to stabilize the price level against deflationary fears,
the Federal Reserve’s actions have likely led to more fluctuations
and uncertainty in our already weak economy.

Could central bank monetary stimulus borrow from future taxpayers
to pacify the present populace by overprinting money?

We have serious concerns that further intervention by the Federal Reserve
could exacerbate current problems or further harm the U.S. economy.

Such steps may erode the already weakened U.S. dollar
or promote more borrowing by overleveraged consumers.

Is the United States of America the "Land of the Free", if the nation's monetary policy
is performed by an unelected privately owned entity?

To date, we have seen no evidence that further monetary stimulus will create jobs
or provide a sustainable path towards economic recovery.

...The American people have reason to be skeptical of the Federal Reserve
vastly increasing its role in the economy if measurable outcomes cannot be demonstrated.


Sen. Mitch McConnell, Rep. John Boehner, Sen. Jon Kyl, Rep. Eric Cantor
September 20,2011

"Dear Chairman Bernanke:

...we write to express our deep concerns over the recent announcement
that the Federal Reserve will purchase additional U.S. Treasury bonds,
the so-called Quantitative Easing 2 (QE2).

While intended to improve the short-term growth of the U.S. economy
and help maintain a stable price level,
such a measure introduces significant uncertainty
...could result both in hard-to-control, long-term inflation
and potentially generate artificial asset bubbles
that could cause further economic disruptions.

If the natural cycle of laissez faire capitalism revolves between risk and aversion,
what should happen if government intervention perverts the process
to forestall short term economic pain?

...Perhaps most damaging, we believe that QE2 is giving the impression
that the Federal Reserve will keep making new and different attempts
to boost the short-term prospects for the economy.

Are American taxpayers responsible for loans made to other country’s?

Our long-term growth depends on restoring confidence
and certainty in our fiscal, regulatory, and trade policies
-- and not on government’s willingness to engage in additional stimulative measures.

If the Federal Reserve lowered US short term interest rates to 0-0.25%,
enticing some savers to earn nothing or take more risk,
have artificially rising financial markets masked monetary and economic imbalances?

When asset prices increase due to anticipated Federal Reserve policy
rather than economic fundamentals, it increases the potential for speculative action
and erodes confidence in the economic outlook,
making it more difficult to generate sustainable growth."

Sen. Mitch McConnell, Rep. John Boehner, Sen. Jon Kyl, Rep. Eric Cantor
November 17, 2010

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