Not Interested in Charlie Sheen's Stomach Ache

So I've been watching Al Jazeera's streaming coverage of Egypt, and reading posts like this and scary reports like this:

Fed's Hoenig says QE3 "may get discussed" The Federal Reserve could debate extending its bond-buying program beyond June if U.S. economic data prove weaker than policymakers expect, Kansas City Fed President Thomas Hoenig said. Another round of bond buying "may get discussed" if the numbers look "disappointing," Hoenig told Market News International in an interview published on Tuesday.

And that's the Fed's most strident hawk.

I haven't posted much about the Fed and Bernanke recently. The current situation -- an unelected zealot conjuring up billions every day and inflating yet another asset market bubble, apparently immune from any effective checks on his conduct and with no consequences for his past incompetence and complicity -- is too disheartening. But I wonder if there is any debate or even understanding within the Fed of the global consequences of its current policy, which is contributing to unrest in the Middle East and elsewhere via rising food and commodity prices.

A few months ago I had drinks with a congressional staffer, and we talked about the symbiotic relationship between Congress and the Fed. It's a tacit understanding: politicians need the Fed to effectively finance projects in their home districts and create trickle-down tax receipts (have you heard any elected officials express concern about the current stock market bubble?). In return, the Fed expects minimal oversight and criticism.

This arrangement is nothing new, but the economic consequences have never been more obvious. Except for a small group that includes Ron and Rand Paul, DeMint, Vitter and a few others, there really is no desire in DC to rein in the Fed before it crashes the system yet again and takes a lot of the world with it. As I said: disheartening.