A group of Republican economists aren't keen on the Federal Reserve's decision to buy $600 billion in bonds in an effort to spur the U.S. economy. Their criticism focuses on the potential for the aggressive strategy -- championed by Fed Chairman Ben Bernanke -- to trigger inflation and weaken the dollar, the Associated Press reported.

Former John McCain economic adviser Douglas Holtz-Eakin and ex-Treasury official John Taylor are among the nearly two dozen economists criticizing fellow Republican Bernanke in advertisements that will be published this week in The New York Times and The Wall Street Journal, the wire service reported. The ad contains a letter to Bernanke saying the decision to buy bonds should be "reconsidered and discontinued."

Economists and officials continue to debate the effectiveness of the Fed's aggressive monetary policy, which it launched earlier this month as the second phase of its quantitative easing program, the so-called QE2.

In response to the ad, a Fed spokeswoman said spurring the U.S. economy will require a coordinated effort among many entities, including the Fed, Congress and the Obama administration, the AP said.

Last week, Federal Reserve Governor Kevin Warsh, in a speech to the annual meeting of the Securities Industry and Financial Markets Association in New York, said the government's decision to buy more bonds could cause longer-term inflation because of a weakening dollar and higher commodity prices. He added that the government may be better off reforming the tax code to create incentives for companies to boost investment, according to a separate AP report.

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WOWEEEE.........! We now have cars that cost too much, handheld computers that cost too much, and a BIG Government that costs too much...........so our paper Federal Dollar is going down the scale of value, sounds like a good time for a Barter Website and cutting costs by 25 %............USA Dollar is now like the Mexican Peso ? Buyer Beware ! ! ! You CAN Fool Some of the People All of the TIME> GM is a good example.

November 17 2010 at 5:21 AM Report abuse rate up rate down Reply

Why not just issue a new $ Dollar, like Mexico does with the Peso, that is devalued by 29 % or whatever is necessary to achieve Debt Targets and also sell into the World Marketplace................3rd World Economies have done this for decades, to maintain growth and correct political errors ! ! Printing paper starts inflation which is very damaging, raising taxes drives Capital Investment out of the USA which is equally damaging, few in the USA have ever experienced a devalution but it is much less trouble than taxes or inflation.

November 17 2010 at 5:09 AM Report abuse rate up rate down Reply

George Soros is probably laughing his head off, since he was video taped saying that America was the last big obstical to a New World Order.

November 16 2010 at 1:53 PM Report abuse +3 rate up rate down Reply

The Republicans are right...Borrowing money from China to buy back I.O.U.s from another source is rather rediculous.

November 16 2010 at 1:48 PM Report abuse +2 rate up rate down Reply

Well as usual as soon as the GOP rains on good news the DOW crashes again. Once the super intelligent Republicans realize it's folks like me who invest in American businesses and not some arrogant Wall Street CEO/CFO the sooner they'll get it. Tax breaks for the rich don't create jobs except for foreign businesses because CEO's and CFO's aren't investors their high end consumers buying goods from other countries. Well watch your 401 tank today after their little dog and pony show

November 16 2010 at 12:53 PM Report abuse -2 rate up rate down Reply
1 reply to dltanner7's comment

dltanner, do you think stealing the fruits of your neighbor's labor creates jobs? If you really imagine the Dow is retreating for some reason other than the announcments of efforts in Asia to cool the rising tide of inflation (like that discussed in this article), you probably do.

November 16 2010 at 1:34 PM Report abuse +2 rate up rate down Reply

China will own us!! Just saw on the news last night that the chinese are teaching their kids english. They will need to know our language when they take us over in the next 20-30 years!!! Wake up America-we are screwed. Bring our jobs back and stop buying chinese goods!!! Try for a week to buy all american made goods-bet you can't do it-

November 16 2010 at 12:04 PM Report abuse +1 rate up rate down Reply

We are ruining our own economy. Sure, China and Germany are griping and suggesting a new standard currency, Won't happen soon, but it wii in the future. Our dollar is the standard in world trade. The euro may meet a early demise with the disparity of euro members ability to stall debt. The EU will finally disapear and currecies will return to independent levels. What would a German mark be worth today? Surely far more than a French franc or Italian lira.

November 16 2010 at 11:27 AM Report abuse rate up rate down Reply

Check out the You Tube Video of- The Ben Bernank! The Plumber & The Goldman Sachs. Want to understand this mess in plain old english? Well, it awaits you. (Well done, to whomever put it together!)

November 16 2010 at 9:25 AM Report abuse rate up rate down Reply

What a dog and pony show. Yeah, we the people really believe that these cronies know nothing about the connection between the Fed and Goldman Sacs. The QE2 (printing more money out of thin air) uses that money to buy treasuries from Goldman Sacs and not where you and I buy them from,which is the U.S. Treasury. Check it out. "We the people" to them means, we the dumb and dumber. But Americans are waking up all across this country. Connect the dots folks!

November 16 2010 at 8:44 AM Report abuse +3 rate up rate down Reply

I hope everyone is paying attention to all of the economic news. The Fed is being exposed for what it truly is. It is not part of the U.S.government no more than Federal Express is. The Fed is an unecessary third party (banking cartel)to the money creation system that has been a parasite to the citizens of this country. As the Fed creates money (prints it) they are paid interest due on every dollar that is printed. Why must interest be paid for a dollar that could be printed directly by the government itself without having to pay anyone for doing it. This system needs abolished at once and the "Banksters" need to be removed from this power that is not constitutionally theirs to have.

November 16 2010 at 7:54 AM Report abuse +6 rate up rate down Reply
1 reply to dgs755's comment

EXACTLY!!! The Fed is a fraud perpetrated onto the public as a Central Bank in disguise. It has been thus since its inception in a Georgia conspiracy in 1910 and since its sneaky enablement in 1913. We must dump the Fed and its script and adopt the equivalent of Lincoln's Greenback Plan. We can no longer afford the burden of the Rothschild legacy.

November 16 2010 at 1:35 PM Report abuse rate up rate down Reply