Rep. Ron Paul, R-Texas, says the Federal Reserve will eventually self-destruct because of its efforts to revive the U.S. economy with more monetary easing.

Paul told CNBC that the Fed’s decision last Wednesday to spend an additional $600 billion in quantitative easing — government bonds in a bid to make loans cheaper and get Americans to spend more — won't work and 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."

Paul, a frequent critic of the Fed, is likely to become chairman of a subcommittee that oversees monetary policy when the new Congress takes over in January, CNBC reported.

Paul was particularly critical of Fed Chairman Ben Bernanke.

"Bernanke 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."

About Bernanke's statement that he wants four percent inflation, Paul said: "When he gets to four and decides to go to eight, there's no way they can stop it. If they withdraw, it might make things worse. They think they have control. They don't."

Bernanke defended the Fed's new $600 billion program to aid the economy on Saturday, rejecting concerns that it will spur runaway inflation, the Associated Press reported.

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.

The economy hasn't been growing fast enough to reduce unemployment, which has been stuck at a high of 9.6 percent for three straight months. The Fed worries that high unemployment, lackluster wage gains and still-weak home values will weigh on consumer spending, a major drive of overall economic activity.

Because companies are loath to raise retail prices in this climate, inflation has been running at very low levels. That gives the Fed leeway to launch the new aid program.

President Barack Obama defended the Federal Reserve's policy of printing 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.

Resentment abroad stems from worry that Fed pump-priming will hasten the U.S. dollar's slide and cause their currencies to shoot up in value, setting the stage for asset bubbles and making a future burst of inflation more likely.

"As a major reserve currency issuer, for the United States to launch a second round of quantitative easing at this time, we feel that it did not recognize its responsibility to stabilize global markets and did not think about the impact of excessive liquidity on emerging markets," Chinese Finance Vice Minister Zhu Guangyao said on Monday.

The Fed's quantitative easing policy was unveiled last week to jeers from emerging market powerhouses from Latin America to Asia. Russia renewed its assault on Monday.

"Russia's president will insist .... that such actions are taken with preliminary consultations with other members of the global economy," said Arkady Dvorkovich, a Russian official who is preparing the country's position in Seoul.

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