Erik Paulsen

Paulsen and colleagues warn Bernanke about covering U.S. debts

Monday, June 8th, 2009

Letter.JPGRep. Erik Paulsen, R-Minn., and three of his Republican colleagues in the House sent a letter to Federal Reserve Chairman Ben Bernanke on Friday warning him that the pattern of the Fed “creating dollars” to cover U.S. debts would likely have longterm negative consequences on the economy. Pumping the Treasury Department with newly printed money “gives markets a short term boost at the expense of debasing the dollar and triggering inflation,” the letter states.

The letter also warns that foreign lenders like China and Japan may be less likely to do business if the trend continues and notes that the U.S. could lose its AAA credit rating like the British government. Click on the image to the left to read the full text of the letter.

Paulsen wrote on his blog on Monday afternoon that, “Rather than creating new money to pay for our debt, Congress needs to cut spending and reduce borrowing. In other words, we need to start paying down our national debt with money we actually have.”

Paulsen frustrated with partisan politics on the Hill

Friday, June 5th, 2009

PaulsenSpeaking on the House floor last night, Rep. Erik Paulsen, D-Minn., said he was surprised at how much partisanship hinders legislative progress on Capitol Hill – especially compared to his experiences in the Minnesota State Legislature. Paulsen, who was elected to the House of Representatives in 2008, made the remarks as part of a scheduled opportunity for freshmen Republicans to reflect on their time in Congress.

“I think a lot of being a successful legislator and making yourself a successful state, and now a successful country, is being able to build relationships to get things done and be results-oriented,” Paulsen said. “In the Minnesota Legislature we were always allowed to offer an amendment to a bill as long as it was germane, just as you were mentioning a little while ago. But here in Congress we have to get permission to offer an amendment from the Chair of the Rules Committee or from the Speaker of the House. So it’s a very closed process, and it’s not an open flowing process where I think it’s easier to breed partisanship.”

Earlier in the evening, before giving a speech about the need to support small businesses, Paulsen said, “I think a lot of us, to be honest, are frustrated with the leadership around here that doesn’t necessarily give us the opportunity to offer amendments, to offer change that Washington in particular I think really does need, the American people more than anything really need right now.”

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