Rick Perry attacks Ben Bernanke’s ‘treasonous’ Federal Reserve strategy

Texas governor’s attempt to assert hawkish credentials draws criticism from moderate Republicans and White House The Texas governor, Rick Perry, has staked out his challenge for the Republican presidential nomination as a hawk on economic policy by characterising the strategy of the Federal Reserve chairman, Ben Bernanke, as “treasonous”. Perry swiftly emerged as a leading contender for the Republican nomination after announcing his intention to run for president on Saturday , in part because he is governor of a state that has ridden the economic downturn better than most and has seen more jobs created than any other. He has won favour with the Tea Party movement and among other fiscal conservatives with his strong opposition to Barack Obama’s stimulus strategy. Addressing a political rally in Iowa on Monday, the Texas governor attacked suggestions by Bernanke that with the economy again struggling the Federal Reserve may resort to another round of buying trillions of dollars of bonds, known as quantitative easing. Perry said that would amount to little more than an attempt to buy support at next year’s election, at a huge cost to the country. “If this guy prints more money between now and the election, I dunno what y’all would do to him in Iowa but we would treat him pretty ugly down in Texas. Printing more money to play politics at this particular time in American history is almost treasonous – or treasonous in my opinion,” said Perry. He went on to accuse Obama of an economic strategy that endangered America. “I think the greatest threat to our country right now is this president trying to spend his way out of this debt,” he said. The White House denounced the remarks, saying presidential candidates should not try to interfere with Federal Reserve policy. “When you are president or running for president, you have to think about your words,” spokesman Jay Carney said during an Iowa stop of Obama’s three-day jobs bus tour. “The Fed’s independence is important.” Perry’s remarks were also condemned by some moderate Republicansm, who noted that Bernanke was appointed by Obama’s predecessor, George Bush. But attacks on the president’s stimulus strategy play well with many on the right as the Texas governor seeks to mark out distinctions with the other leading Republican candidates: the more mainstream Mitt Romney and the Tea Party supporter Michele Bachmann. Perry is constructing his bid for the presidency around what he portrays as his successful economic strategy in Texas of minimising government and promoting business ,which helped the state weather the worst of the recession and has seen it create nearly 40% of all new jobs in the US over the past two years. Critics say Perry has merely been lucky because Texas was shielded from the worst of the depression by an oil-based economy, when petroleum prices were at an all time high. They also say that whatever strategy Perry has pursued in Texas is not new to the state and cannot be applied to the country as a whole. But that did not stop Perry from contrasting his record as governor with Romney, the former governor of Massachusetts. “Take a look at his record when he was governor. Take a look at my record,” Perry said as he visited the Iowa state fair. “Running a state is different than running a business.” At one point Perry appeared to suggest he did not take Romney seriously as a candidate by blowing kisses at a camera and saying: “Give him my love.” Romney has sought to fend off the challenge from Perry by noting that he has no experience in the private sector. The Texas governor has held an elected office continuously since 1984, which critics say makes a mockery of his claim to be an outsider standing up to the political system. Romney said: “You know, I can tell you that I think my jobs record spans not just four years as governor, but also the 25 years that I’ve lived in the private sector. I think understanding how the economy works by having worked in the real economy is finally essential in the White House, and I hope people recognise that.” Perry’s past is also coming under scrutiny over his support for Al Gore’s 1988 challenge for the presidency. Perry was a Democrat at the time and Gore’s campaign chairman in Texas. That support is raising questions about Perry’s professed rejection of climate change theories, the issue Gore has embraced since leaving office but which is viewed by many on the right as a hoax. In a radio interview on Monday, Perry said that he backed Gore before he “got to be Mr Global Warming”. However, Politico reports that global warming was already an important issue for Gore at the time Perry was backing him. Gore made climate change a theme of his presidential run as early as April 1987. Rick Perry Republican presidential nomination 2012 Republicans US elections 2012 Mitt Romney Quantitative easing US politics United States Economics US economy Chris McGreal guardian.co.uk

Posted by on August 16, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.