Monetary Policy Brought to you by the Tea Party

Never mind that the "Paul's" want to dismantle the Federal Reserve (we would then be the only country in the world without a Central Bank) and allow monetary policy to be a function of ..... (I am not sure because when I wrote my honors thesis on monetary economics 40 years ago they forgot to teach me the mechanics of no monetary policy... because the need for monetary policy was so obvious).

I digress.

Yesterday, the Fed basically said "We cannot conduct the monetary policy we told you we would because the economic data is a little softer (that has been true for 2 months and it didn't alter the message) and we anticipate that Fiscal Policy will be a drag on the economy."  Basically, they think the Tea Party wants to create a default, slash government spending immediately and they don't want to pile on with tighter monetary policy.

So despite (i) the market thinking QE3 has done all it can do and anymore is dangerous, (ii) the Fed thinking along the same lines, the Fed cannot do what they want to do because the Congress will not do what it is suppose to do.

Many pundits are doing a better job of me at explaining how a hells bells effort to end ObamaCare is both mean (trying to take away reduced costs of health care from people both who need subsidies and  people with means who are gouged by the current system) and pointless because the Senate and the President are not going to let the Tea Party win on this.  After all, the President won the election and he is in office.

Anyway, the b*lls**t going on in the House is unbelievable and needs to end.  We cannot get to the 2014 election fast enough.  And I can only hope that independents in swing districts are as sick of this as I am.