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With deficit hawks circling overhead, the responsibility for creating jobs has fallen by default to Ben Bernanke and the Federal Reserve. Last week the Fed committed to keeping interest rates near zero through the end of 2015, in order to stimulate employment.

Two cheers.

The problem is, low interest rates alone won't do it. The Fed has held interest rates near zero for several years without that much to show for it. A smaller portion of American adults is now working than at any time in the last thirty years.

The biggest beneficiaries of near-zero interest rates aren't average Americans. They're still too weighed down with debt to be able to borrow more, and their wages keep dropping. And because they won't and can't borrow more, businesses won't have more customers. So there's no reason for businesses to borrow to expand and hire more people, even at low interest rates.

The biggest winners are the big banks, which are now assured of three more years of almost free money. The big banks won't use the money to refinance mortgages -- why should they when they can squeeze more money out of homeowners by keeping them at higher rates? No, they'll use the almost free money the way they've been using it since the housing bubble burst -- to make big bets on derivatives. If the bets go well, the bankers make a bundle. If the bets sour, well, you know what happens then. Watch your wallets.

The truth is, low interest rates won't boost the economy without an expansive fiscal policy that makes up for the timid spending of consumers and businesses. Until more Americans have more money in their pockets, government has to fill the gap.

On this score, the big news isn't the Fed's renewed determination to keep interest rates low. The big news is global lenders' desperation to park their savings in Treasury bills. The euro is way too risky, the yen is still a basket case, China is slowing down and no one knows what will happen to its currency, and you'd have to be crazy to park your savings in Russia.

It's a match made in heaven -- or should be. America can borrow money more cheaply than ever, and use it to put Americans back to work rebuilding our crumbling highways and bridges and schools, cleaning up our national parks and city parks and playgrounds, and doing everything else that needs doing that we've neglected for too long.

This would put money in people's pockets and encourage them to take advantage of the Fed's low interest rates to borrow even more. And their spending would induce businesses to expand and create more jobs. A virtuous cycle.

And yet for purely ideological reasons we're heading in the opposite direction. The federal government is cutting back spending. It's not even helping state and local governments, which continue to lay off teachers, fire fighters, social workers, and police officers.

Worst of all, we're facing a so-called "fiscal cliff" next year when larger federal spending cuts automatically go into effect. The Congressional Budget Office warns this may push us into recession -- which will cause more joblessness and make the federal budget deficit even larger relative to the size of the economy. That's the austerity trap Europe has fallen into.

Why are Republican and Democratic deficit hawks so brain dead? Even the nation's credit-rating agencies seem to have lost their minds. Last week Moody's said it would likely downgrade U.S. government bonds if Congress and the White House don't come up with a credible plan to reduce the federal budget deficit. (Standard & Poor's has already downgraded U.S. debt.)

Hello? Can we please stop obsessing about the federal budget deficit? Repeat after me: America's #1 economic problem is unemployment. Our #1 goal should be to restore job growth. Period.

The Federal Reserve Board understands this. And at least it's trying. But it can't succeed on its own. Global lenders are giving us a way out. Let's take advantage of the opportunity.