Posted on 11/07/2010 2:32:50 PM PST by Al B.
As President Obama prepares for the G20 summit in South Korea this week, Sarah Palin is challenging the Federal Reserve’s monetary policy, which will likely be a key issue at the talks. On Monday, in a keynote address at a trade-association convention in Phoenix, Palin will urge Fed chairman Ben Bernanke to “cease and desist” his “pump priming.” The United States, she says, “shouldn’t be playing around with inflation.”
I’m deeply concerned about the Federal Reserve’s plans to buy up anywhere from $600 billion to as much as $1 trillion of government securities. The technical term for it is “quantitative easing.” It means our government is pumping money into the banking system by buying up treasury bonds. And where, you may ask, are we getting the money to pay for all this? We’re printing it out of thin air.
The Fed hopes doing this may buy us a little temporary economic growth by supplying banks with extra cash which they could then lend out to businesses. But it’s far from certain this will even work. After all, the problem isn’t that banks don’t have enough cash on hand – it’s that they don’t want to lend it out, because they don’t trust the current economic climate.
And if it doesn’t work, what do we do then? Print even more money? What’s the end game here? Where will all this money printing on an unprecedented scale take us? Do we have any guarantees that QE2 won’t be followed by QE3, 4, and 5, until eventually – inevitably – no one will want to buy our debt anymore? What happens if the Fed becomes not just the buyer of last resort, but the buyer of only resort?
All this pump priming will come at a serious price.
(Excerpt) Read more at nationalreview.com ...
I am counting the minutes til 2012 so I can vote for her. I will campaign for her, raise money for her, and tell everyone I know to vote for her. Show me anyone else that is putting it all on the line like she has these past two years. She takes so much crap from both sides yet still comes back swinging, she is just amazing!
She also won over Larry ‘King Dollar’ Kudlow when she was a guest on his show before being named to McCain’s ticket.
8^D
Sarah tells Bernanke to cease and desist. LOL! Luv ya, Sarah.
I understand Kudlow was offended by Palin's remark about Reagan "being an actor" that was twisted around by Peggy Noonan in her hit piece. From what I'm told, callers and Reagan historian Craig Shirley himself took Kudlow to task on his radio show Saturday for the way he took the remark.
Nice to hear that Craig Shirley come to Sarah's defense. He's a true charter member of the Reagan Revolution.
I'm going to listen to Kudlow's show (archived at WABC radio) tonight and tomorrow to see exactly how that played out. I know he's been a big fan of Sarah in the past.
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Do you ever tire of being an abcessed wisdom tooth?
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I’m surprised by that—don’t know what got into ol’ Larry.
Onyx, LOL at the pic of the Marxist in Chief!
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> “Note that the same people that forecast that QE1 would be the end of the world, (Schiff, Denninger etc.) haven’t said much about how QE1 was reversed out with no hyperinflation, or anything close.”
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Obviously your wife does all the shopping...
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Btw watch how Bush starts criticizing Palin along with Rove and the other GOP establishment...they know she is now on the direct path to expose their destructive and arguably criminal activities with their buddy banksters...
Time to take our country back!!!
When I read this thread article, I became so aware of how her aim is not only beautifully timed ( we figured that one out, lol) but her aim is also extremely powerful. She forces into the open the quiet extreme and endpoint of uhbama's careless governing.
His lack of maturity shows itself MOST BLATANTLY in the poor character and generous lack of wisdom so many of his appointees exhibit.
I cannot help but believe Ben wants to ruin his nation, right along with uhbama.
Every time I start believing in the attacks of the liberals and the RINOs alike,
somehow Sarah Palin manages to bring me back to her world.
RUN! SARAH, RUN!
DO WHAT GWB AND THE RINOS COULDN’T DO!
AUDIT THE FEDS!
AMEN Sarah!
Uh, but watch out. The central bankers are bad enemies to make. I’m no big conspiracy theorist — but these guys, with BILLIONS of $$, access to GOVERNMENT SECRETS and VENDETTA’S to keep — well, I’m SURE they have a “black helicopter corp,” if you know what I mean!
Be careful Sarah! Watch your back!
Like E.F. Hutton, when Palin talks, people listen.
I can see Zimbabwe from my house!
http://www.businessinsider.com/what-is-quantitative-easing
Recently, Bernanke lied outright by asserting that “Quantitative Easing” (QE) was not inflationary. See article at above link for a clear definition and explanation of QE.
Note that the same people that forecast that QE1 would be the end of the world, (Schiff, Denninger etc.) haven’t said much about how QE1 was reversed out with no hyperinflation, or anything close.
Don't be too quick. It won't happen on a schedule. Assuming that nothing untoward *appears* to have happened is proof that it isn't going to happen is not wise.
The fact is, without printing hundreds of billions of dollars to "buy" US debt, the US government couldn't run its current operations. Because there simply aren't enough *real* lenders out there willing to lend the money.
If you drive your car without sufficient oil it will continue to run for a time. Thinking that, because the engine didn't seize up the first week, it can't / won't happen is denial.
The government's creation of "money" with no tangible goods and services to back that money is simply smoke and mirrors. Too big to fail is keeping us afloat right now. Not much of a life preserver, IMO.
Several years ago, tax cheat Timmy said that US debt was no problem because we have a magic device called a printing press. I'm certainly not going to bank our future on babbling from the (economic) village idiot.
“And if it doesn’t work, what do we do then? Print even more money? What’s the end game here? Where will all this money printing on an unprecedented scale take us? Do we have any guarantees that QE2 won’t be followed by QE3, 4, and 5, until eventually – inevitably – no one will want to buy our debt anymore? What happens if the Fed becomes not just the buyer of last resort, but the buyer of only resort?”
Well said, Sarah. This might already be happening.
The Mises Institute (http://mises.org/daily/4798) had an interesting profile on Bernanke, detailing his educational background: undergraduate in economics at Harvard; Ph.D. in economics from MIT. Apparently, all of his academic work and writings were devoted to the notion that the cause of economic downturns (including the Great Depression) was lack of bank credit:
“The relevant issue for today is that Bernanke essentially believes that it is the Federal Reserve’s job to bail out financial institutions in order to maintain the channels of credit and to prevent other “nonmonetary” factors from negatively impacting aggregate demand. This explains Bernanke’s swift acting to bail out financial firms like Bear Sterns and AIG, the nationalization of Fannie Mae and Freddie Mac, backstopping whole markets such as money-market mutual funds, and absorbing vast quantities of toxic assets onto the Federal Reserve’s balance sheet.
In preparing for this lecture, I began to realize just how obvious a choice Bernanke was for chairman of the Fed. From the point of view of banks, corporations, and Wall Street — also known as the “corporatocracy,” a government run for the interests of big corporations — who would be better than someone who literally wrote the book on bailing out the banks and Wall Street during a financial crisis?”
I think that Mark Thornton, the author of the above statement, is correct. The depressing thing is that many, perhaps most, academics and mainstream economists are more or less in agreement with Bernanke’s basic position, which is this: economic growth is driven and sustained by consumer spending — so called “aggregate demand.” If aggregate demand falls, then so will economic activity in general, and it will be the responsibility of government, via its central bank, to perform the spending in the economy that the consumers (for some unknown reason — “fear”, “irrationality”, etc.) refuse to do. Keynes himself claimed that it makes no difference what the government spends money on — “might as well be pyramids” he said — just as long as it spends.
This view, in fact, is false, and it was one of the achievements of the Austrian School to show this (see Austrian Business Cycle Theory). However, as long as the myth persists that growth is the result of consumption, I doubt that there will be a serious attempt to “End the Fed” even if Ron Paul manages to audit it.
Palin has her sights on the wrong person thats heads a entity that is under the direct control of Congress.
Either pumping more money into the system to maintain the frail economy or letting the economy totally reset via a depression by not pumping, is the only choices Congress has to get re-elected in 2 years.
What happens after a 2 year time period, who cares? Maybe Palin but she needs to focus on the crux of the matter, spending. The current debt outstanding, nothing can be done about as it haunts taxpayers for decades no matter what is done or said now.
If they weren’t spending they wouldn’t have to print.
Wrong.
Government spending is a total different thing with the Fed’s actions.
Spending represents “real money”. Fed’s printing of money that’s not there yet is “faux” money.
China has been against these Fed’s action since it will further weaken the US Dollar. Ironically, China’s wealth is also pegged on the strength of the dollar.
These are two GODZILLAs that need to be attacked at the forefront.
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