The Debts of the Spenders: The Great Game

Bernanke is running a dangerous gauntlet - trying to avoid the twin problems of inflation and a credit crisis. So far, the Fed under his tenure has acted as expected - in support of financials. This is no surprise as the Fed, the Treasury, and financials have traditionally had an incestuous relationship w/members from one group frequently transitioning to the other.

Inflation is threatening the balance. While the credit crisis is certainly part of the American economy, so is consumer spending on staples and food/energy. Already, several of the regional Feds have openly dissented with the party line.

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