Before you watch this video I'd like to explain why I'm showing it. This Democrat congressman is pursuing a more popular theme running through congress these days. What legal right does the Federal Reserve have to send dollars overseas in the form of credit? Does it require any Congressional scrutiny at all?
Bernanke is correct in his answer though. He's offsetting volatility in dollar markets globally. Why? Because congress insists on spending more than what it has. The treasury is broke so the Federal Reserve is in the business of procuring wealth, credit, and assets so that we can insanely finance wars and payoffs. The Federal Reserve doesn't make our insane policy, it reacts to our insane policy. Congress should look inward before it points at the bank for needing to take extreme measures to keep our monetary policy alive.
I'm not a fan of the central bank at all, but they're only part of the problem.