Tuesday, November 9, 2010

Sarah Palin Tells Bernanke "Cease and Desist" from QE2

Citing the hyperinflation experienced by Germany in the early part of the 20th century, Sarah Palin took aim at Ben Bernanke and the Federal Reserve, saying "maybe it's time for Chairman Bernanke to cease and desist," from printing more money and inflating the money supply through acquiring more government debt, "When Germany, a country that knows a thing or two about the dangers of inflation, warns us to think again," she said.

Palin rightly noted there's no certainty the printing of money will work, and I would add more strongly: it won't work. What about the abysmal failure of the first round of quantitative easing doesn't Bernanke or the Federal Reserve understand?

"We don't want temporary, artificial economic growth bought at the expense of permanently higher inflation which will erode the value of our incomes and our savings," concluded Palin speaking to the Specialty Tools and Fasteners Distributors Association.

Again, last time the so-called stimulus failed to do anything, but the debt is still owed, and no jobs created.

That is proven by the fact when the gimmicks and money that actually went into the economy ended, the economy reverted back to what it really was: a disaster.

Or, it simply revealed itself for being as weak and anemic as it had always been. And even with the hundreds of billions spent, no jobs were created whatsoever, other than the, for the most part, temporary government jobs.

The Federal Reserve is under increasing pressure as Americans slowly but surely understand the devastating and unchecked institution this is, and how they control the quality of their financial lives.

The genie is out of the bottle, and there's no putting it back. Slowly we'll see this out-of-control institution weakened, and hopefully, ended.

Until then, chiseling away at the edges by people like Sarah Palin is a good way to keep in front of the American people the carnage the Fed creates through its actions.

Gold prices will continue to benefit from the horrid policies of the Fed, which seem to be committed to printing money until by what they consider the power of their actions can push the economy into growth.

When the economy recovers, we all need to know it's not from the Federal Reserve, but in spite of it.

1 comment:

Anonymous said...

I calculate that, using the m3 ($80 trillion), Ben Bernanke’s $600 billion monetizing move is intended to devalue the dollar about 7 percent. The amazing thing is how this is being spun by Democrats: Devaluation is good because, in theory, it will improve the competitive environment for American business; that is, it might reduce the US trade deficit. Never mind that it will for sure reduce the value of everyone’s savings accounts and 401Ks by 7 percent, and it will increase the cost of everything by 7 percent. Never mind that it will exacerbate unemployment as it further burdens the economy with higher costs, as inflation has always been a prime jobs killer.

The way to improve the competitive stance of American business it to reduce the corporate tax rate, and to NOT devalue NOR encourage more and more third world parasiticism on the American economy as President Obama just did during his visit to India.

It seems leftist elation over dollar devaluation has no or little challenge at home. While there is plenty of foreign hand wring over it, the only national politicians I have heard strenuously object to it are Congresswoman Michele Bachmann and Sarah Palin.

Obama might have selectively raised the bar to foreign imports. He could have put a tax on Chinese imports, given that China artificially pegs the yuan low to the dollar and given that the Chinese labor rate is 50 cents per hour. But instead he apparently chose his Fed to levy the equivalent of an import tax across the board. That’s what currency devaluation does. Like Herbert Hoover, Obama risks foreign retaliation, which for sure will include refusal to purchase American debt, all so that he can reduce the gargantuan US debt by the only way most economists predicted is possible, namely, currency devaluation.

By the way, the $13 trillion debt is $380,000 for each tax paying household in America.