Director Of The New York FED : The Value Of A Dollar Is A 'Unit Of Account'Submitted by emalvini on Tue, 03/27/2012 - 11:54
Director Of The New York FED : The Value Of A Dollar Is A 'Unit Of Account'
The Domestic Monetary Policy and Technology Subcommittee, chaired by Rep. Ron Paul, was held today to examine the Federal Reserve’s assistance to the Eurozone and the impact that assistance has on the U.S. monetary system and the dollar.
New York Federal Reserve Chairman and CEO William Dudley and Steven B. Kamin, the Federal Reserve’s director of international finance, appeared before the Subcommittee to describe all the assistance provided by the Federal Reserve to mitigate the financial crisis in Europe as well as the outcome of this assistance on the financial markets and the domestic monetary system.
“The Federal Reserve has been creating money out of thin air for 40 years now,” Chairman Paul stated, “and they’ve ramped up the printing presses during these five years of crisis—all in the name of economic stability. But there are consequences to massive amounts of money creation, consequences when central banks print money, consequences when they loan it, and consequences when banks get this money and create even more money and credit through fractional reserve banking. Indeed, these Fed actions helped cause the very crisis we’re suffering from today.”
At the end of the sub-committee, Dr. Paul asked the director of the FED, Steven Kamin, what the definition of a dollar is? The director responded, "the value of the dollar is a unit of account."