The Fed bet $900 billion it didn’t have — and it lost.
Good thing China is not the Mafia or someone would kneecap Ben Bernanke.
First, the Xtra Normal cartoon: Quantitative Easing Explained:
In that liberal shorthand that they substitute for critical thinking, this is called QE2.
But unlike the luxury ship that Cunard Lines operated for 39 years, Bernanke’s QE2 sank.
Taking with it, $900 billion.
The idea was to have the Federal Reserve buy $900 billion worth of Washington’s burgeoning debt under a Democratic Congress — up nearly $6 trillion since Democrats took over Congress in 2006 (and Congress has the power of the purse, and not the president) Quantitative Easing was pitched as another savior of the economy after the stimuli of 2008 ($150 billion) and 2009 ($787 billion) failed.
So we flushed nearly $2 trillion down the toilet and unemployment is still 8%-9% — far higher than when the government began trying to stop the inevitable retrenchment of the economy.
The fiscal plan of papering our problems over with $900 billion in new money hurt the economy.
The liberals brought back inflation.
$4 gasoline?
