This department is not about the politics of the Obama Administration. It is about its economics.

President Obama faces a worldwide recession, a huge and rapidly growing budget deficit, rising unemployment, widespread fear, and the threat of a run to get out of dollars if foreign central banks decide to stop buying U.S. Treasury debt.

No President has faced anything like this since Herbert Hoover departed, leaving Franklin Roosevelt holding the bag. In the 1930's, Roosevelt was able to raise the deficit without threatening the dollar. The Federal Reserve System could inflate without raising prices very much or threatening the dollar. President Obama is not in the same position.

Nancy Pelosi is the key -- the ramrod. If she can deliver the votes, she can increase the Federal debt by trillions of dollars before the next Presidential election. Obama will sign whatever she and Harry Reid out on his desk.

Ben Bernanke also has a seat at the table. So does the Secretary of the Treasury, who will formulate and articulate the government's responses to a disintegrating economy. In short, to imagine that Obama is in charge of economic policy is to misunderstand the nature of the American Establishment.

Events will get far beyond the ability of the Democrats to contain them. The rest of us will have to duck or else roll with the punches. I prefer the former.