The debate over what the Federal Reserve is doing to the dollar is heating up and moving into the political realm.
Over the weekend, the leaders of the Tea-Party-associated group Freedomworks, Dick Armey and Matt Kibbe, had a piece in the Washington Examiner arguing that QE2 favors the banks over consumers and taxpayers: "the Fed seems bent on propping up its Wall Street clientele by shifting ever more risk to the taxpayers."
Today the New York Sun has an editorial about how Sarah Palin is challenging Ben Bernanke.
And the Financial Times has an op-ed piece by the president of the World Bank, Robert Zoellick, a longtime Republican foreign and economic policy person, proposing a new international monetary system: "The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today."