"We believe the Federal Reserve's large-scale asset purchase plan (so-called 'quantitative easing') should be reconsidered and discontinued. We do not believe such a plan is necessary or advisable under current circumstances. The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed's objective of promoting employment."We subscribe to your statement in the Washington Post on November 4 that 'the Federal Reserve cannot solve all the economy's problems on its own.' In this case, we think improvements in tax, spending and regulatory policies must take precedence in a national growth program, not further monetary stimulus."We disagree with the view that inflation needs to be pushed higher, and worry that another round of asset purchases, with interest rates still near zero over a year into the recovery, will distort financial markets and greatly complicate future Fed efforts to normalize monetary policy."The Fed's purchase program has also met broad opposition from other central banks and we share their concerns that quantitative easing by the Fed is neither warranted nor helpful in addressing either US or global economic problems."
"..an increase in the quantity of money...that is not offset by a corresponding increase in the need for money."
" INTERVIEWER: Tell me, what is the worst-case scenario? Sir, we have so many economists coming on our air and saying, 'Oh, this is a bubble, and it's going to burst, and this is going to be a real issue for the economy.' Some say it could even cause a recession at some point. What is the worst-case scenario, if in fact we were to see prices come down substantially across the country?" BERNANKE: Well, I guess I don't buy your premise. It's a pretty unlikely possibility. We've never had a decline in house prices on a nationwide basis. So what I think is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don't think it's going to drive the economy too far from its full employment path, though."
"The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy."
"People say, you guys are all wrong because you predicted inflation and it hasn't happened. I think there's plenty of inflation – not at the checkout counter, necessarily, but on Wall Street."The S&P 500 might be covering its fixed charges better, it might be earning more Ebitda, but that's at the expense of other things, including the people who saved all their lives and are now earning nothing on their savings.""That to me is the principal distortion, is the distortion of the credit markets. The central bankers have in deeds, if not exactly in words – although I think there have been some words as well – have prodded people into riskier assets than they would have had to purchase in the absence of these great gusts of credit creation from the central banks. It's the question of suitability."