Bernanke: He's All About the Benjamins, Baby

In order to buy $900 billion worth of Treasury bonds, the Federal Reserve announced today that it will print a whopping $600 billion in fresh bills over the next 8 months. The Fed hopes to speed economic growth by lowering long-term interest rates and promote borrowing.

Though the Federal Reserve acts independently from Congress, the new wave of Republican anti-stimulus plan sentiments entering the House puts the Fed in the pressure-cooker as disagreements escalate between the Democrat and Republican parties over tax-cuts and job creation. The Fed cannot fix the national debt alone, and will be looking for the backing of Congress to increase fiscal stimulus.

This sudden increase in anti-deficit, anti-government spending rallying from the Republicans may have spurred the Fed into forging forth with their new plan to fix a "disappointingly slow" economic recovery. Chairman Ben Bernanke has said, "Fiscal stimulus, accommodated by the Fed, is the single most powerful action the government can take for lowering the unemployment rate, when short-term rates are already at zero."

The recent 9.6% unemployment rate and the Republican's gain of (at least) 60 House seats puts President Obama in a rough situation. Obama announced today that he is rethinking the White House policy on the Bush Administration's soon-to-expire tax cuts and is willing to negotiate with both parties, though he noted, "How that negotiation works itself out I think is too early to say." Early? Excuse me, Mr. President, but this recession has lasted long enough. The Fed is pumping out more monies, but you need to hurry up and make some fiscal changes, too....or you're out.

And that's the way it is.