Heritage Economist on Fed: 'It's Taxation Without Representation'
(CNSNews.com) -- Stephen Moore, chief economist at the Heritage Foundation, told CNSNews.com that the Federal Reserves quantitative easing policy of recent year, which has resulted in the Fed's balance sheet topping $4 trillion for the first time, is a form of taxation without representation.
"Who elected them?" Moore asked of current and former Fed chairmen Ben Bernanke and Janet Yellen. "In some ways, all of this money creation, its taxation without representation.
"Never in the history of this country have we seen such a massive buildup in money," he said.
At the five-year anniversary meeting of Tea Party Patriots in Washington, D.C. on Thursday, CNSNews.com asked Moore: “Ben Bernanke left the Fed with a $4 trillion balance sheet. What do you suspect that Janet Yellen will do?”
Moore said, “Well, when you print money--you know there’s an old saying in economics that inflation is too many dollars chasing too few goods. Well, we have too much money out there. So I’m very worried about what in effect all of this money slushing around is going to have on inflation.”
“It’s baked in the cake,” he said. “ As you said, there’s four trillion dollars of asset sales. And if the economy ever starts moving, you’re going to start to see prices start to really kick up and that makes me extremely nervous.”
“I mean, I hope I’m wrong, but we’ve never done this before,” said Moore. “This is unchartered territory. So never in the history of this country have we seen such a massive buildup in money.”
Moore continued, “The other thing to think about is, you know, we’ve put all of this power into the hands of an unelected -- you know first [Fed Chairman] Ben Bernanke, now Janet Yellen -- well, who elected them? So this, in some ways, all of this money creation, its taxation without representation, right, and because when you devalue the dollar, when you print more money it just means that every dollar that we have is worth less, right, so it’s like a tax on the American consumers and families.”