One of my biggest complaints about the media is the lack of accountability. People say things on TV in print an on radio, and then . . . Poof! No consequences. They influence public perception of issues, affect policy debates, drive legislation.

This is a perfect example of a stern warning of currency debasement and inflation due to QE. Let me point out this was made 3 years ago today — hence, it has been terribly wrong.

I won’t give you advice — but I keep track of who is consistently wrong, whose histrionic forecasts are both silly and wrong. Their future comments are valued accordingly.

e21 Team | 11/15/2010 To: Chairman Ben Bernanke

Federal Reserve

Washington, DC Dear Mr. Chairman: We believe the Federal Reserve’s large-scale asset purchase plan (so-called “quantitative easing”) should be reconsidered and discontinued. We do not believe such a plan is necessary or advisable under current circumstances. The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed’s objective of promoting employment. We subscribe to your statement in The Washington Post on November 4 that “the Federal Reserve cannot solve all the economy’s problems on its own.” In this case, we think improvements in tax, spending and regulatory policies must take precedence in a national growth program, not further monetary stimulus. We disagree with the view that inflation needs to be pushed higher, and worry that another round of asset purchases, with interest rates still near zero over a year into the recovery, will distort financial markets and greatly complicate future Fed efforts to normalize monetary policy. The Fed’s purchase program has also met broad opposition from other central banks and we share their concerns that quantitative easing by the Fed is neither warranted nor helpful in addressing either U.S. or global economic problems. Respectfully, Cliff Asness

AQR Capital Michael J. Boskin

Hoover Institution, Stanford University

Former Chairman, President’s Council of Economic Advisors Richard X. Bove

Rochdale Securities Charles W. Calomiris

Columbia University Graduate School of Business Jim Chanos

Kynikos Associates John F. Cogan

Hoover Institution, Stanford University

Former Associate Director, U.S. Office of Management and Budget Niall Ferguson

Harvard University

Author, The Ascent of Money: A Financial History of the World Nicole Gelinas

Manhattan Institute & e21

Author, After the Fall: Saving Capitalism from Wall Street—and Washington James Grant

Grant’s Interest Rate Observer Kevin A. Hassett

American Enterprise Institute

Former Senior Economist, Board of Governors of the Federal Reserve Roger Hertog

Hertog Foundation Gregory Hess

Claremont McKenna College Douglas Holtz-Eakin

Former Director, Congressional Budget Office Seth Klarman

Baupost Group William Kristol

Editor, The Weekly Standard David Malpass

GrowPac, Encima Global

Former Deputy Assistant Treasury Secretary Ronald I. McKinnon

Stanford University Joshua Rosner

Graham Fisher & Co., Inc.

Dan Senor

Council on Foreign Relations

Co-Author, Start-Up Nation: The Story of Israel’s Economic Miracle Amity Shlaes

Council on Foreign Relations

Author, The Forgotten Man: A New History of the Great Depression Paul E. Singer

Elliott Management Corporation

John B. Taylor

Hoover Institution, Stanford University

Former Undersecretary of Treasury for International Affairs Peter J. Wallison

American Enterprise Institute

Former Treasury and White House Counsel Geoffrey Wood

Cass Business School at City University London (Institutional Affiliations are for Information Only) See the letter as printed in the Wall Street Journal (PDF)

Previously:

An Open Letter to Bernanke of Dubious Authorship (November 15th, 2010)