Ron Paul took out his own economic tools and did surgery on the latest round of quantitative easing from the Federal Reserve - QE3.
“No one is surprised by the Fed’s action today to inject even more money into the economy through additional asset purchases. The Fed’s only solution for every problem is to print more money and provide more liquidity,” Paul said.
“Mr. Bernanke and Fed governors appear not to understand that our current economic malaise resulted directly because of the excessive credit the Fed already pumped into the system.”
Paul also said that the central bank is simply repeating its former actions, which did absolutely nothing to help the American economy.
“For all of its vaunted policy tools, the Fed now finds itself repeating the same basic action over and over in an attempt to prime the economy with more debt and credit,” Paul said. “But this latest decision to provide more quantitative easing will only prolong our economic stagnation, corrupt market signals, and encourage even more misallocation and malinvestment of resources.
“Rather than stimulating a real recovery by focusing on a strong dollar and market interest rates, the Fed’s announcement today shows a disastrous detachment from reality on the part of our central bank. Any further quantitative easing from the Fed, in whatever form, will only make our next economic crash that much more serious,” Paul noted.
The latest stimulus will entail the acquisition of $40 billion in mortgage-backed securities on a monthly basis with no time frame or limitations set upon it.
Evidently the Fed and Bernanke will continue to inject money into the economy until they start to see an improvement in the jobs market.
Since 1913 when the Federal Reserve was created, it has overseen and been the source of the fall in the value of the U.S. dollar by over 95 percent.