Sarah Palin, delving into a major policy issue a week after the mid-term elections, took aim Monday at the Federal Reserve and called on Fed chairman Ben Bernanke to "cease and desist" with a bond-buying program designed to boost the economy.The criticism was met with howls of derision, but as this NY Sun editorial points out (h/t reader Jay), has proven prophetic (emphasis mine):
Speaking at a trade association conference in Phoenix, the potential 2012 presidential candidate and tea-party favorite said she's "deeply concerned" about the central bank creating new money to buy government bonds. Ms. Palin said "it's far from certain this will even work" and suggested the move would create an inflation problem.
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.”In other news, the most intelligent, nuanced and intellectually adroit President ever -- someone who can parse a sentence with his bare hands -- still is pushing windmills and high speed trains as the key to our economic future.
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?
I'll take a mere commoner as the next president, you can have Don Quixote.
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