Ron Paul: The Federal Reserve will self-destruct

Ron Paul says the Federal Reserve will eventually self-destruct because of its efforts to revive the U.S. economy with $600 billion in quantitative easing, they plan on buying governments bonds, which Dr. Paul says will destroy the dollar's value around the world.

"They (the Fed) can’t manage a dollar like this," Paul told CNBC. "People are going to desert the dollar. I think the Chinese are hinting that already: They’re not wanting our dollars as much as they want raw materials and other things."

Ron Paul, a staunch critic of the fed, will become the chairman of the committee that oversees monetary policy when the new Congress takes over in January.

"Bernanke (Fed Chairman) is very clear at what he's going to do," said Paul. "He's going to create money until he gets economic growth, and there's no evidence creating money creates economic growth."

Bernanke defended the Fed's new $600 billion program to aid the economy on Saturday, rejecting concerns that it will spur runaway inflation. Critics, including some Fed officials, fear that all the money being injected into the economy could ignite inflation or speculative bubbles in the prices of bonds or commodities. Speaking to a conference on the Georgia coast, Bernanke said the new program won't push inflation to "super ordinary" levels.

President Barack Obama defended the Federal Reserves policy of counterfeiting dollars on Monday after China and Russia stepped up criticism ahead of this week's Group of 20 meeting, Reuters reported.

"I will say that the Fed's mandate, my mandate, is to grow our economy. And that's not just good for the United States, that's good for the world as a whole," Obama said during a trip to India. "And the worst thing that could happen to the world economy, not just ours, is if we end up being stuck with no growth or very limited growth," he said.

Washington has frequently criticized China, saying it deliberately undervalues its currency to boost exports. China says the United States, via the Fed, is engaged in the same thing that it stands accused of, and some emerging nations have already acted to curb their currencies' rise.

The Fed's quantitative easing policy was unveiled last week to jeers from emerging market powerhouses from Latin America to Asia.