Paul Krugman of the New York Times loves the idea of the Fed printing money, in fact, in normal Krugman fashion, he says $600 billion in money created out of thin air is too little money printing. He wants more. (Sarah Palin is against it.)
The rest of the world's economic powers from Germany, China, Brazil and others hate the idea and want the United States to stop. China and Russian hate is so much they announced they will no long use dollars for trade between their own nations -- but their own currencies instead.
Obama has defended the Fed saying "the Fed's mandate, my mandate, is to grow our economy." He is happy they are trying to get the economy going without him having to go back to Congress to ask for another $600 billion.
Printing money devalues the dollar because there are more dollars, and their value drops.
Furthermore, people holding dollars don't like their hard-earned cash to lose value, so they do something else with their dollars, like buy something that will retain its value, while they are watching the dollar's value evaporate every time the Fed prints more money.
This, of course, further devalues the dollar because those trying to give dollars to get something else find to hold their value, find out they need more dollars to get the same amount of the something else, because those with the something else know the dollar is devaluing -- and ask for more dollars when selling the something else. Uh, if you know what I mean.
The Euro crisis has temporarily put a stop to a radical decline in the dollar because those watching Ireland, Portugal and Spain are now wondering if the Euro is going to suffer the same fate as the dollar.
Some with Euros are buying dollars even as the Fed is actively trying to devalue it.
But others are going for Door Number 3, to sell both dollars and Euros to buy something else.
Turns out, at the top of the something else list is oil.
As demand for oil spikes because the currency war is devaluing the brand name currencies, it takes more dollars to buy less oil.
Guess what happens? The price of oil goes up, Chris Herb, vice president of the Independent Connecticut Petroleum Association helpfully explains.
And thus, the price of oil is spiking because the Fed is printing money.
It's the Fed gas bubble.
But commodity inflation of all kinds is also caused by dollar printing by the Fed -- rice, corn, sugar -- you know, the staples. It is a flight from dollars (and Euros) to commodities to retain value, or even increase it.
And if Ireland and others in Europe were not in a financial meltdown, the cost to fill up your car would be even higher.