The GOP's Double Or Nothing Bet On Nothing

The GOP is now dead set on making sure the federal government does nothing to help the economy or the millions of Americans out of work as Republican leaders are warning Helicopter Ben that if he tries anything, they're coming for him first.

Republican leaders in Congress have asked Federal Reserve Chairman Ben Bernanke to refrain from any further monetary stimulus during policy makers' two-day meeting ending Wednesday.

"Respectfully, we submit that the board should resist further extraordinary interventions in the U.S. economy, particularly without a clear articulation of the goals of such a policy, direction for success, ample data proving a case for economic action and quantifiable benefits to the American people," read a letter from Republican leaders and addressed to Bernanke.

The letter was co-signed by House Speaker John Boehner of Ohio, House Majority Leader Eric Cantor of Virginia, Senate Minority Leader Mitch McConnell of Kentucky and Senate Minority Whip Jon Kyl of Arizona.

"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," read the letter.

Yes, because the entire Republican macroeconomic theory textbook can fit on a matchbook cover ("Cut taxes!") we get the extraordinary step of Republican dictating policy to the Fed.  On the other hand, more than a few Republicans on the 2012 campaign trail want to set up a few ropes and trees for Helicopter Ben anyhow, so the GOP is just continuing their tactic of implied threats against Bernanke and the Fed should they ever get back in power.

Of course should the GOP get back in full control of Washington, they'll turn on the printing press and yell "deficits don't matter".

To its credit, the Fed this afternoon told the GOP to go stimulus itself.

The Federal Reserve on Wednesday dialed up its aid to the beleaguered U.S. economy, launching an effort to put more downward pressure on long-term interest rates over time and help the battered housing sector.

The Fed said it would launch a new $400 billion program that will tilt its $2.85 trillion balance sheet more heavily to longer-term securities by selling shorter-term notes and using those funds to purchase longer-dated Treasuries.

It will now also reinvest proceeds from maturing mortgage and agency bonds back into the mortgage market, an acknowledgement of just how weak conditions in the sector have remained.

"Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated,'' Fed said in its statement.

Going to be interesting to see which of the GOP calls for Bernanke's hanging first.