September 16, 2012
In a reversal of earlier statements, Republican candidate Mitt Romney “opened fire on Friday after the Fed began an open-ended third round of quantitative easing (QE3), under which it will buy $40bn of mortgage-backed securities a month,” the Financial Times reports.
The Federal Reserve’s decision to flood the economy with a fresh influx of fiat money eight weeks before the election is widely viewed as a way to save the flagging presidency of Barack Obama.
Despite the best efforts of the establishment media to characterize the third round of QE as a sorely needed boost to jumpstart the economy, Egan-Jones reduced its rating of U.S. government debt from “AA” to “AA-,” stating the obvious – $40 billion-per-month of seriously devalued money dumped by the Fed will put a serious hurt on the economy.
“Recognize that, as the Federal Reserve keeps on trying to stimulate the economy by printing more money, that there’s a cost to that,” Romney said at a fundraiser.
“The value of your savings goes down. People who are living on fixed incomes don’t see much interest income any more. And the value of the dollar goes down, and the risk for long-term inflation goes up.”
Romney’s running mate, the pseudo-Tea Partier Paul Ryan, is also following the new Romney campaign tactic of trashing the Fed and linking its policies to Obama.
“One of the most insidious things a government can do to its people is to debase its currency,” Ryan said at an outdoor rally in Oldsmar, Florida. “We want honest money; that means we want honest government. It’s one and the same. Now the secret to prosperity is not more money printing.”
“We don’t need sugar high economics; we don’t need synthetic money creation,” he said. “We need economic growth. We want wealth creation. We don’t want to print money. We want opportunity and growth. And when they do this to our money, it undermines the credibility of our money.”
Romney and Ryan are playing politics with the Fed decision. If the Republicans win in November it is unlikely they will move to reform the private bankster cartel or dismantle it entirely.
In August, the Romney said he would replace Federal Reserve Chairman Ben Bernanke, dismissing the advice of a top adviser who suggested Helicopter Ben should be considered for a third term.
Glenn Hubbard, Romney’s economic adviser, told Reuters he would advise the Republican presidential candidate that Bernanke should “get every consideration” and stay at the helm of the Fed. Hubbard is a life member of the Council on Foreign Relations, a former Deputy Assistant Secretary at the Department of the Treasury, and was chairman of the Council of Economic Advisors under Bush.
“I think Ben Bernanke is a student of monetary policy; he’s doing as good a job as he thinks he can do,” Romney told Larry Kudlow in April, 2011. I’m not going to spend my time going after Ben Bernanke. “I’m not going to spend my time focusing on the Federal Reserve.”