“Monetary Policy and the Debt Ceiling: Examining the Relationship Between the Federal Reserve and Government Debt”
Wednesday, May 11, 2011 10:00 AM in 2128 Rayburn HOB
Domestic Monetary Policy and Technology
WITNESS LIST
Dr. Richard Ebeling, Professor Economics, Northwood University
Mr. Bert Ely, Ely & Company, Inc.
Dr. Matthew J. Slaughter, Dean, Tuck School of Business, Dartmouth College
(Thanks to Minnesota Chris)
UPDATE Says the official release:
7:18 pm on May 8, 2011The hearing will explore the fundamental role that U.S. government debt plays in the monetary system; the use of Treasury debt by the Federal Reserve in conducting monetary policy; and the troubling reliance of Congress on the Fed to print money to facilitate deficit spending….“The national debt has exploded by more than 60 percent over the past four years, and it looks like Congress will be asked to approve another $2 trillion increase for the next year,” Subcommittee Chairman Paul stated. “On top of trillions of dollars in bailouts, the American people will not stand for this continuing fiscal profligacy. This is why it is so important to understand the relationship between monetary policy and the national debt. Foreign governments cannot continue to purchase unlimited amounts of U.S. debt. If the federal government cannot cut spending and bring the budget back into balance, the Fed undoubtedly will be forced to simply monetize trillions of dollars in Treasury debt, which is nothing more than a stealth form of default. That devaluation of the dollar will lead to such high inflation that QE2 and its effects will look like a drop in the bucket in comparison.”
