More specifically, to answer Mr. Andy Kessler’s excellent question today:

So how is Fed chairman Ben Bernanke going to get all that toothpaste back into the tube?

The Fed has been cranking money out like water over Niagara Falls. The monetary base has increased by a trillion dollars in just the last six months.

And he’s not done, furiously printing dollars (bank credits, really) and buying Treasuries in an attempt to flood the economy with dollars.

When will it end? $3 trillion? $4 trillion? And then what? A functioning economy doesn’t need all that cash sloshing around. Is runaway inflation our next crisis?

I’ll tell you how they will do it.

Correction, I’ll tell you how they think they will do it — because they won’t be able to actually do it — they will try, and they will fail; due to naivete, arrogance, short-sightedness, the council of 2nd and 3rd rate intellects (cf. Summers, Krugman, et al.), and they will fail, because they will gauge the market incorrectly.

Essentially, they are going to nationalize the banks, so that when the Fed goes to sell it’s debt to the market and “private” banks, the non-private “private” banks will essentially do exactly as they say, and buy the debt at the prices they dictate to the banks.

That is their plan. Simple, stupid, short-sighted, and self-destructive.

Kiss your 401-K goodbye.

Otherwise, these bozos will use effectively all of it to “service” the thirteen trillion dollar spending spree that they’ve authorized by your wallet.