Tuesday, November 9, 2010

Sarah Palin On Inflation - Umm, Actually The Opposite Is True

The UK Guardian reported this yesterday:

Palin [declared] that she was "deeply concerned" and would call on the US Federal Reserve chairman, Ben Bernanke, to "cease and desist" buying up government debt.

"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? ... All this pump-priming will come at a serious price," Palin will say, according to snippets of the speech obtained by National Review. 

"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," Palin adds, putting a populist slant on monetary policy. 

Her remarks place her firmly, if awkwardly, in company with an international chorus of critics opposed to a US policy that many fear is not only designed to ward off deflation but to drive down the value of the dollar and of US debt.

In reality, in all of 2009, inflation was MINUS 0.4%. Prices DEFLATED. So, last year, if you were paying "significantly" more across a broad spectrum of purchases, you were getting rooked.

And thus far in the 10 months of statistics available for 2010, inflation is running at about 1.6% on an annualized basis.

Furthermore, inflation has NOT gone above 4% per year since 1991. That's almost 20 years of very low inflation.

One can see that the Tea Partiers and their accomplices in the Republican Party are still trading on fear.

In their ignorance of all things great and small, the beastie boys and girls have yet to discover that at this moment it is DEFLATION that is the danger to the national and world economies. A bit more inflation would actually help us.

Where are the Democrats who should be calling this gang of political hoods out on this hooey?

No comments:

Post a Comment