Yes, you read right. I almost could not believe my ears, Barney Frank told the world that the FED could not adequately fight inflation because we do not have a strong enough “safety net” (translation – welfare state) to support the people that would have to be put out of work to do so. But he said it, even as he was having a Maxine Waters moment and was clearly unsure that it was something he should say.Well Congressman Frank, if you recall, Clinton signed the major reform of welfare in this country and all we ever hear about was the “Clinton” economic prosperity. Maybe the real problem the FED has is that the Congress and Senate have decided that spending money faster that the FED can print it is the most fun you can have with your clothes on.
If the Government would stop spending money and get out of the way, we would not be worrying about gas prices, inflation unemployment and whether or not there is enough paper and ink available to write the blank check that the Administration wants in order to bail out Fannie Mae and Freddie Mac.