Republicans are in a tizzy because the Fed is creating a trillion dollars out of thin air to jump-start the economy. Republicans didn’t mind that the Fed was creating trillions out of thin air for the last 8 years so that Wall Street banks could create a huge house of cards. Notice what the price of oil did when the banks could no longer afford to buy oil futures.
Republicans didn’t question why the Saudis and the Chinese had surplus dollars to lend Bush so that he could run a trillion dollar a year deficit. This was only possible because the Fed was creating money out of thin air to hide the trade deficit. The insane trade policies of the Republicans wouldn’t have lasted two years without Alan Greenspan creating money OUT OF THIN AIR.
But even with Bush spending money borrowed from China like water, the money was piling up in foreign accounts. The solution was to create bigger and bigger bubbles. Wild speculation in the commodities markets, securitized debt, complex credit default swaps, derivatives based on debt, derivatives based on derivatives and repeat that ten times.
They were heating up the economy faster than Exxon-Mobil is heating up the planet, but not the real economy, just the paper economy. A year ago China pulled the plug and laid off twenty million workers. Then the bubbles started to pop, deflation set in and sucked 45 trillion out of the economy.
Now Republicans are sure that a new trillion aimed at home owners instead of Wall Street banks will cause inflation. Republicans are jumping up and down with fake populist outrage about who knew what about bonuses. Even Liberals are letting the right define their outrage. Haven’t we learned anything. Republicans won’t ever admit the truth. Anything Republicans are outraged about is just a lie to hide their own responsibility.