Palin to call on Fed to ‘cease, desist’ bond buys

By Dow Jones Newswires
Posted Nov. 8, 2010 at 1:42 p.m.

Former Alaska Gov. Sarah Palin is deeply concerned about the Federal Reserve’s plan to buy $600 billion worth of U.S. bonds to boost the economy, placing the former vice presidential candidate in line with Germany in questioning U.S. monetary policy.

Palin is expected to demand that Federal Reserve Chairman Ben Bernanke “cease and desist” the stimulus injection, according to National Review Online, which said it obtained snippets of Palin’s prepared remarks scheduled for Monday before a trade association in Phoenix.
Her comments will come as tensions over the U.S. monetary policy have flared before the Group of 20 industrial and developing nations set for later this week, which President Barack Obama will attend. German leaders have sharply questioned the U.S. economic policies and have accused the country of devaluing its currency to boost exports.

The Federal Reserve said last week it was going to buy $600 billion of securities over the next eight months to rev up borrowing and growth in the slow economic recovery. Palin said the plan will be paid for by printing money “out of thin air.”

Palin is considered a possible GOP presidential candidate in 2012 and some see the recent success of tea-party candidates in congressional elections as boosting her clout.

Palin is incredulous the plan will 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,” she is expected to say.

She is also expected to say if the bond buying fails “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?”

She is expected to say the bond buying will come at a “serious price” as it will raise the cost of groceries and push oil prices higher. The bottom line, Palin is expected to say, is that the government “shouldn’t be playing around with inflation.” She thinks the Fed’s actions have small businesses running scared and U.S. allies worried.

She is also expected to say what the country needs is a stable dollar combined with “real economic reform.”

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  1. reality Nov. 8, 2010 at 7:02 pm

    I’d guess Palin thinks a “bond” is the money you pay to get friends & family out of jail!

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