Fed’s Euroweenie Bailout Killing U.S. Consumers

By The New York Post

Wall Street — and the rest of the world’s financial markets — rejoiced yesterday after Federal Reserve Chairman Ben Bernanke joined forces with other bank chiefs to buy Europe more time to deal with its deepening debt crisis.

The Fed chief — along with five of the world’s biggest central banks — launched a coordinated plan that will make it cheaper for troubled European banks to borrow US dollars as they try to stave off a looming credit crunch.

The plan to inject much-needed liquidity into the financial system cheered Wall Street and markets around the world even though it does little to address Europe’s longer-term debt woes.

While traders clinked their glasses, Bernanke’s efforts to shore up global markets could come at a cost to consumers, as the excess cheap cash stands to lower the value of the greenback while raising prices here at home.

A weaker dollar also raises the prices of imported goods, like computer chips, warned one hedge-fund manager.

You’re putting your foot on the gas pedal of monetary expansion, which causes the price of gasoline to go up,” said David Darst, chief investment strategist at Morgan Stanley.