Monday, April 25, 2011

Sarah Palin Knew Obama's QE2 Plan Was A Bust Long Before Economists Did



By Gary P Jackson

I'm continually tickled by the supposedly "intelligent" people who dismiss Sarah Palin when she speaks. Never mind that she's always proven right after the fact.

I know the left wing's [and the Republican establishment's] default position is that any strong Conservative leader, someone who doesn't subscribe to far left ideology, or in the GOP's case, someone not of the country club, soggy cucumber and mayo sandwich set, someone who doesn't go to the "right" schools, is in their eyes, an idiot. A rube. Too stupid to understand complicated issues.

Nothing could be further from the truth, and we have decades worth of evidence that it's the over-educated, but inexperienced, Ruling Class elites who are clueless. After all, it's these Ivy League elites who have gotten us in all of this mess in the first place!

The last President we had that had an ounce of common sense when it came to complex issues was Ronald Reagan. He was called an "amiable dunce" because he didn't go to the right schools either.

In Sarah Palin's case it's breathtaking.

Her record as a Mayor, oil and gas regulator, and Governor is filled with the sort of successes most politicians would kill for. She wasn't a "One-Note-Johnny" either. She was strong on every issue. Most overlooked though are her strong fiscal abilities. The fact she was able to balance budgets and create multi-billion dollar surpluses is lost on those who want to dismiss her outright.

I'm reminded of an excerpt from Kay Cashman's book: Sarah Takes On Big Oil:
Dan Seamount, one of two commissioners who served with Sarah Palin in 2003 and early 2004 on the Alaska Oil and Gas Conservation Commission, had the following to say about Palin.

"She's pro-development, not pro industry. She'll tell you,'My boss is the people of Alaska.'

"She s smart, a quick study. Her adversaries biggest mistake is underestimating her intelligence, her understanding of issues. And she uses their arrogance against them.
Maybe if our "betters" weren't so busy telling us how dumb Sarah Palin is, they'd have had time to check our her strong comments at the CLSA Investors Summit in Hong Kong. You see, Sarah was talking tough to China, in China, back in September of 2009, long before reality TV show "star" Donald Trump was making noises.

The London Financial Times and Reuters noticed, for sure, but the lamestream media made sure it was never reported widely in this country.

That brings us to Barack Obama and Ben Bernanke's quantitative easing [QE2] scheme. QE2 is just a fancy way of saying: "Hey, let's just print more money!"

This is a plan for disaster. It has failed every time it has been tried. Countries have collapsed, totally and completely collapsed, because their leaders have chosen to just print money in just such a manner.

The Weimar Republic of Germany is a good example, where it took a wheelbarrow full of notes to buy a loaf of bread. Zimbabwe is a modern day example of what happens when the government just starts to print money.

How big of a disaster is the Obama/Bernanke fiasco? The New York Sun is seriously suggesting that, instead of being President, Sarah Palin should be named the next Fed Chairman!

Hard to argue with that reasoning, but I have faith that as President, she'll choose someone who actually understands practical economics, for that job.

Anyhow, from The Sun:
Sarah Palin for the Fed?

The big question as Chairman Bernanke gets set for his first quarterly press conference is how Sarah Palin was able to figure out sooner than everyone else that the Federal Reserve’s campaign of quantitative easing wouldn’t work.

Disappointment in the Fed’s policies is being reported this morning at the top of page one of the New York Times. It reports that "most Americans are not feeling the difference" from the Fed’s "experimental effort to spur a recovery by purchasing vast quantities of federal debt." It reports that "a broad range of economists say that the disappointing results show the limits of the central bank’s ability to lift the nation from its economic malaise."

It’s a terrific story, and well-timed, given that on Wednesday Mr. Bernanke will break tradition and meet with the press. It is part of the Fed’s effort to get ahead of what is emerging as a public relations catastrophe, as gasoline is nearing six dollars a gallon at some pumps, the cost of groceries is skyrocketing, and the value of the dollars that Mr. Bernanke’s institution issues as Federal Reserve notes has collapsed to less than a 1,500th of an ounce of gold. Unemployment is still high. Shakespeare couldn’t come up with a better plot.

But how in the world did Mrs. Palin, who is supposed to be so thick, manage to figure all this out so far ahead of the New York Times and all the economists it talked to?

She did this back in November in a speech at Phoenix, which the Wall Street Journal, in a laudatory editorial at the time, characterized as zeroing in on the connection between a weak dollar and rising prices for oil and food.

"We don’t want temporary, artificial economic growth brought at the expense of permanently higher inflation which will erode the value of our incomes and our savings," the Journal quoted Mrs. Palin as saying. "We want a stable dollar combined with real economic reform. It's the only way we can get our economy back on the right track." Now here is the New York Times quoting a raft of economists who have reached the conclusion that Mrs. Palin’s warning was right down the line.

It happens that Mrs. Palin’s demarche coincided with a piece in the Financial Times by the president of the World Bank, Robert Zoellick, suggesting that a new international monetary system centered on the major currencies "should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values."

The FT is such a Keynesian bastion that the Journal likened Mr. Zoellick’s mentioning gold in its pages to mentioning Sarah Palin’s name at the Princeton Faculty Club. The FT issued an editorial attacking its own op-ed piece, while Mr. Zoellick’s scoop so startled the New York Times that it brought in no less a heavyweight than James Grant of the Interest Rate Observer to write a piece on the virtues of the gold standard.

Alone among general interest publications, the Drudge Report has been fronting the gold price almost daily. And now the Times itself is out with its a story about how the Fed’s quantitative easing has been a disappointment.

It may have, as the Times puts it, "pumped up the stock market, reduced the cost of American exports and allowed companies to borrow money at lower interest rates," but "those benefits have been surprisingly small." Will any of this bring some humility to the Fed and its chairman?

It will be something to watch for in his first big press conference Wednesday. No doubt it will be one of the most crowded press conferences in recent memory, and there will be lots to ask about. But one of the questions will be how in tarnation Mrs. Palin figured it out so far ahead of everyone else.
Sarah Palin figured it because she's not stupid! Far from it.

Unlike the Ruling Class and the Beltway elites, Sarah Palin still buys the family's groceries, puts gas in her car, and pays attention to the real world around her.

The really incredible part about this is she is not alone. Anyone with an ounce of common sense could have figured this out. Of course, that's really where the problem lies with America's political class. No one has a lick of common sense!

We're told that guys like Donald Trump, Mitt Romney, Mitch Daniels, and other dead end candidates are financial geniuses, and yet it's the housewife from tiny Wasilla, Alaska who is running circles around these "intelligent" candidates. All of these cats were hiding under their desks rather than hammering Obama and Bernanke over their dangerous fiscal policies.

At a time when we need leaders, only one has consistently proven to be one. Only one knows how to get out there and fight like a girl!



I'm always tickled by the artwork above, which appeared on the cover of the Economist after the 2010 election. It shows Sarah Palin leading the Republican posse as they come to take back Congress. I'm looking forward to the cover of their magazine after November of 2012.
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