At this point, nearly 7 full years into the Bush regime, there’s hardly a malediction I can hurl in Monkey Boy’s direction that hasn’t been spoken before. And yet somehow I’m still amazed at the idiocy of both Bush and the toadies with which he’s managed to surround himself.
Faced with the prospect of stagflation (that’s a lack of growth coupled with rising prices), all Sackless Wonder Ben Bernanke can think to do is cut rates. Meanwhile, the Dear Leader proposes a stimulus package (involving a massive tax rebate) that only the most die-hard Reaganites can love.
Think about it this way. If you’re going to borrow money to pay for, say, a new stereo (the tax rebate), then you need to make it attractive to someone to actually lend you the money. And the way you get someone to give you a loan when you’re a poor credit risk is to agree to pay them more than you might otherwise … which implies that you’d actually want to raise interest rates.
So, get ready for a fun couple of years as we sort through Bush and Bernanke’s economic disaster-in-the-making.