In a speech delivered on Monday In Phoenix, Arizona, Sarah Palin slams Fed Chair Ben Bernanke and the Obama regime's insane plan to monetize the debt.
Robert Costa over at National Review Online reports:
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.”
Here are snippets from Palin’s prepared remarks obtained by National Review Online:
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. And I mean that literally: everyone who ever goes out shopping for groceries knows that prices have risen significantly over the past year or so. Pump priming would push them even higher. And it’s not just groceries. Oil recently hit a six month high, at more than $87 a barrel. The weak dollar – a direct result of the Fed’s decision to dump more dollars onto the market – is pushing oil prices upwards. That’s like an extra tax on earnings. And the worst part of it: because the Obama White House refuses to open up our offshore and onshore oil reserves for exploration, most of that money will go directly to foreign regimes who don’t have America’s best interests at heart.
We shouldn’t be playing around with inflation. It’s not for nothing Reagan called it “as violent as a mugger, as frightening as an armed robber, and as deadly as a hit man.” The Fed’s pump priming addiction has got our small businesses running scared, and our allies worried. The German finance minister called the Fed’s proposals “clueless.” When Germany, a country that knows a thing or two about the dangers of inflation, warns us to think again, maybe it’s time for Chairman Bernanke to cease and desist. 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. 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.
Sarah is right, of course. Hyperinflation will destroy America. In fact, the historical evidence of this is so strong, one might think that is the purpose of this dangerous path. It's like the Obama regime is purposely destroying our nation. Surely the Marxist-democrats aren't this stupid, are they?
One of the most well known cases of monetizing the debt occurred in Germany in the 1920s, and led to the collapse of the Weimar Republic. This led directly to the rise of Adolf Hitler and National Socialism. It also led to the ridiculousness that included needing a wheelbarrow full of German marks to buy a loaf of bread. It was a complete disaster.
Surely the Marxist-democrats know this, and one must wonder if the total collapse of America isn't their end game.
We don't have to go back to the early decades of the 20th Century to see the evils of what the Obama regime is up to. Obama's good buddy Robert Mugabe has worked similar “magic” in Zimbabwe. This tin pot dictators policies have been so idiotic that by December 2008, inflation was estimated at 6.5 quindecillion novemdecillion percent! (65 followed by 107 zeros)
Yes we can! (turn America into Zimbabwe)
This is a very serious matter and if the Obama regime and the Fed are not stopped, we could not only see the collapse of the United States, but the entire world's economy. Again, one wonders if something like this isn't by design. As Reuters reports, China and Russia are most certainly alarmed, and Obama just keeps on keepin' on.