Monday, November 15, 2010

Palin & others quantitative warning: don't print $ to force inflation

Sarah Palin is correct in her warning about quantitative easing. Hattip from Moonbattery: what is quantitative easing anyway? Watch the video:

James Pethokoukis from Reuters points out Why Wall Street Should Fear Sarah Palin "In a speech and a pair of Facebook postings this week, Palin unexpectedly warned her followers about the inflationary dangers of the Federal Reserve’s “pump-priming addiction” — a reference to the latest round of bond-buying by the U.S. central bank, known as quantitative easing. That’s hardly a novel or unreasonable critique. Many conservatives, and even some Fed officials, share Palin’s unease."

Conservatives4Palin points out Wall Street Journal's Paul Gigot says Governor Palin "Leading the Pack" on Monetary Policy. The WSJ "editors noted the degree of sophistication Governor Palin is bringing to the table as she attempts to focus the nation's attention on the disastrous repercussions which must result from a further inflating of the currency. Specifically, she referred to QE2, the Fed's plan to pump another $600 billion to as much as $1 trillion into the economy via the purchase of U.S. government securities."

"Gigot is correct when he points out that Governor Palin is practically the only prominent Republican touting the virtues of a sound currency. Palin understands as did Reagan that a sound currency is a prerequisite for real economic growth and rising living standards. Just as you can't build a house on a weak foundation, you can't build an economy on the shifting sands of an unstable currency."

CHINA, GERMANY and BRAZIL (to name a few) are also NOT happy about the Fed's plans. So Sarah is in good company and correct in her concern and attempts to bring public attention to this problem.

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