Whatever shred of doubt you may have harbored about the determination of congressional Republicans to keep the economy in the dumps through Election Day should now be gone.
Tuesday, in advance of a key meeting of the Federal Reserve Board's Open Market Committee to decide what to do about the continuing awful economy and high unemployment, top Republicans wrote a letter to Fed Chief Ben Bernanke.
They stated in no uncertain terms the Fed should take no further action to lower long-term interest rates and juice the economy. "We have serious concerns that further intervention by the Federal Reserve could exacerbate current problems or further harm the U.S. economy."
They didn't threaten to "treat him pretty ugly" -- as Texas Governor Rick Perry told his supporters last month he'd deal with Bernanke if he "printed more money" between now and the election.
But the threat was there. "It is not clear that the recent round of quantitative easing undertaken by the Federal Reserve has facilitated economic growth or reduced the unemployment rate."
Translated: You try this, and we rake you over the coals publicly, and make the Fed into an even bigger scapegoat than we've already made it.
Top Republicans believe they can block all or most of Obama's jobs bill. That leaves only the Fed as the last potential player to boost the economy. So the GOP will do what it can to stop the Fed.
After all, as Republican Senate head Mitch McConnell stated, their "number one" goal is to get Obama out of the White House. And that's more likely to happen if the economy sucks on Election Day.
To say it's unusual for a political party to try to influence the Fed is an understatement.
When I was Secretary of Labor in the Clinton Administration, it was considered a serious breach of etiquette -- not to say potentially economically disastrous -- even to comment publicly about the Fed. Everyone understood how important it is to shield the nation's central bank from politics.
If global investors suspect the Fed is responding to political pressure of any kind, investors will lose confidence in the independence of the Fed and its monetary policies. Even if the pressure is to tighten the money supply and keep interest rates high, it's still politics. And once politics intrudes, lenders of all stripes worry that it will continue to intrude in all sorts of ways. Lending to the United States becomes a tad riskier. As a result, lenders charge us more.
The Republican letter puts Bernanke and his colleagues in a bind. If they decide against another round of so-called "quantitative easing" to lower long-term rates and boost the economy, they may look like they're caving to congressional Republicans. If they decide to go ahead notwithstanding, they're bucking the Republicans and siding with Democrats. Either way, they're open to the charge they're playing politics.
Congressional Republicans evidently don't care. They want Obama out, whatever the cost. Besides, they've never met a government institution they don't mind trashing.
Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.
Follow Robert Reich on Twitter: www.twitter.com/RBReich
The Republicrats don't understand what is at stake; and they care not if the country goes down a cliff. They figure, they have a job and they are getting paid, and they will be alright as long as they do the will of their corporate masters. If these Republicrats are patriots, I worry about those who live here and hate the country.
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That should read "mortgage deductions ENDED for all families making $750K or more in income.
Congressional Republican obstructionist tactics aside, has not the president grounds now to place the entire Republican Party on the Hill under arrest for collusion with the enemies of our country?
The FBI should be investigating the personal investment portfolios of all Republicans in the House and Senate to determine whether they are shorting our markets and by trading with the enemy at America's expense. Such an investigation might well reveal acts of treachery and clear signs of treason (by the way punishable by death) not seen in American history.
I knew FDR , Mr. President you ain't no FDR.
Thanks from us main street folks. Keep up the good work!
LIP SERVICE.
There is nothing wrong with refusing to work with the president. Democrats did it to GHW Bush for 4 years. Republicans simply do not find anything the president has to offer to be worthwhile AT ALL, and to agree to anything is only making the situation worse for the next president.
The choice is play out the clock and do no harm, or spend $500B (harm!) while the clock plays out.
I don't blame them for choosing the former.
You folks who, for some unknown reason, listen to the slanted opinions on Fox outlets and repeat them as if they were true, is sad. Where did America go wrong? Is it that bad to have an intelligent and thinking president for a change? Is it that he is not white? How does that hurt you now? No matter now, it's a new century, folks. Real people - millions of Americans - are hurting. The well-to-do will get through this, so no need for the Republicans in Congress to constantly try to improve their take. The clock is ticking, and your time is almost up. The damage done to America by you haters is repulsive, and after the 2012 Democratic sweep, it will take a major effort by all to undo this Republican damage. Open your mind and think for a change - and then maybe you will choose more wisely.
Everything you complain about is a result of 2 years of full control of both houses and the white house by one or other of the 2 parties.
Given a $1.5T + $1.5T + 1.5T (deficits) + $800B (stimulus) + $700B (TARP) + $2T+ (easing) blank check, we are where we are.
I don't blame anyone for not wanting any more blank check for these results.
Personally, I do not believe lowering interest rates is any solution, it seems we keep on lowering them and things keep on getting worse. Let's move to quick agreements that this country can move on because those that ask for everything are more likely to get nothing than something and it seems that the American people are the ones getting nothing.
"The federal government should spend massive amounts of money to end deflation" Robert Reich during deflationary period
"The federal government should spend massive amounts of money to end inflation" Robert Reich during inflationary period
The federal government should spend massive amounts of money to keep the economy growing" Robert Reich during economic growth period
Manupulate short term lending with long term lending, and more mortgages may be made. By golly, let's try it then.
But the Republicans told us not to TRY ANYTHING.............
Yea well........................................
F*** the Republicans
Same ol same ol......till the election.
If Bernanke can't make a decision without attracting criticism from one side or the other, how come it's just the Republicans getting blamed for putting him "in a bind". If one is to believe the context those last few paragraphs, it sure seems to me that both parties are trying to put the screws to him.
And the other side is millionaires trying to protect their millions, angry at those that would revisit the tax break at 2001.
So, obviously, according to the media, our opinon must fall somewhere between those two positions. Therefore, you must expect your tax dollars to at all times support those MORE fortunate than you are.
Sign here................................................................................
He's got to go.