Ben Bernanke is at it again. It appears the Fed Chairman is preparing for a third round of bond purchases (quantitative easing or QE3) that will further inflate the U.S. Dollar. Reuters reports Bernanke told the Senate Banking Committee during the semi-annual monetary policy report the economic recovery was being held back by anxiety over Europe’s debt crisis and the path of U.S. fiscal policy. He also expressed concern over the stagnant job market.

Since December 2008 the Fed has held overnight borrowing costs near zero and has bought $2.3 trillion in government and mortgage-related debt to keep long-term interest rates artificially low. The Fed promised to hold rates at rock bottom levels until at least 2014.

Bernanke told lawmakers it was essential to find a way to avoid the “fiscal cliff” of sharp spending cuts and tax hikes that are scheduled to take place in the United States at the start of next year, warning it could tip the already weak economy into a recession. The Washington Post reports if Congress can’t resolve its budget impasse before the year ends. The “[c]uts in taxes on income, dividends and capital gains would expire. So would this year’s Social Security tax cut and businesses tax reductions. Defense and domestic programs would be slashed. And emergency benefits for the long-term unemployed would run out.”

Bernanke also told lawmakers the central bank was considering a range of tools it could employ to help the economy but he hewed closely to the message of watchful waiting that the central bank’s policy panel delivered in June. “Reflecting its concerns about the slow pace of progress in reducing unemployment and the downside risks to economic growth, the committee made clear at its June meeting that it is prepared to take further action.”

When asked about the possibility of QE3 Kate Ager, with Ladies in Keene, said, “I would prefer to use alternative currencies or barter instead of using Federal Reserve Notes (FRN’s).”

There are several alternatives to the FRN. In Keene, NH people have begun using 1/10th ounce and half ounce silver bars. These pieces of silver are even accepted by several businesses in the city. Other alternatives include Shire Silver, dime cards and silver, copper and gold rounds minted by the AOCS.

I realize it is not possible for everyone to completely avoid using the FRN, however it’s worth the effort to convert as much as possible to the use of honest money!

In mid-July the Republican-led U.S. House of Representatives voted for the 33rd time to repeal the Patient Protection and Affordable Care Act. Before the vote, Speaker of the House John Boehner said, “The intent of the president’s health care law was to lower costs and to help create jobs. … Instead, it is making our economy worse, driving up costs and making it harder for small businesses to hire.”

The Washington Examiner reports, “There was never any doubt that Republicans had the votes to pass the repeal in the House on Wednesday – or that it would die in the Senate, where Democrats possessed more than enough strength to block it.”

Rep. Ron Barber (D-AZ), who was elected to fill the seat vacated by Gabrielle Giffords, said the GOP-inspired repeal legislation was a charade and showed the House “cares more about political grandstanding than in getting things done.” This vote was criticized by some as “campaigning for Romney” on the floor of Congress. I agree this is campaigning on the floor of Congress, however I do not believe it is unprecedented.

Since this action by Republicans was criticized as campaigning; I’m curious whether the same people would accuse Harry Reid of “campaigning for Obama” every time he prevents certain bills from coming up for a vote? Was it campaigning when Nancy Pelosi brought forth a bill to enact “Cap and Trade?” Is it campaigning when any member of Congress requests earmarks that benefit their district?

I would say, “yes” and contend that every action by every member of Congress can be viewed as an act of campaigning on the floor of the Congress. Rep. Peter Roskam (R-IL) said before joining other Republicans in Wednesday’s House vote: “Here’s the good news. The voters get the last word in November.” The truth is most members of Congress are in “safe districts” and do need not worry about getting re-elected, as over 90% of Representatives consistently retain their seats.