2009-03-03bloomberg.com

Bernanke’s comments suggest he sees a role for bigger federal outlays as the Obama administration seeks congressional approval for a budget of $3.55 trillion for the fiscal year beginning in October. President Barack Obama has already signed into a law a $787 billion economic stimulus package of tax cuts and government spending.

Clearly the Fed is trying to get Congress to pick up the slack... for the commitments Bernanke has already made to prop up bad bank assets with his ad hoc "alphabet soup" interventions. This is quite foul, as the interventions were done without legislative due process, but now the government is going to "feel obligated" to make them permanent through fiscal outlays. This is not democracy. It's not even rule of law.


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