The White House Warns Rick Perry Against Threatening The FedSubmitted by bobbyw24 on Tue, 08/16/2011 - 12:21
Texas Gov. Rick Perry (R) appears to be taking a cue from Rep. Ron Paul (R-TX) and criticizing the Federal Reserve for doing what it was designed to do: creating currency.
At a recent fundraising event in Iowa, Perry was asked how he feels about the Fed and chairman Ben Bernanke. ‘If this guy prints more money between now and the election, I dunno what y’all would do with him in Iowa, but we would treat him pretty ugly down in Texas. Printing more money to play politics at this particular time in American history is almost treasonous in my opinion.”
What he’s referring to is a Fed practice known as quantitative easing, where central banks inject additional currency into the economy in times of low activity by purchasing assets from other banks. The policy is meant to keep economic activity high when recession conditions might otherwise prevail, but it also increases the price of bank holdings.