Sarah Palin for Fed Chair?

by Crocker on April 25, 2011, 5:24 am

in Economics,Politics

Generally, Fed Chairmen don’t do press conferences. Ben Bernanke appears to be breaking tradition, however, with the presser scheduled for Wednesday. The advanced billing is that the event is an attempt to get out ahead of the emerging story: that the Fed’s quantitative easing and purchases of US debt have done no particular good and are helping push food and fuel prices up.

Sarah Palin – supposed dimwit that she is – accurately predicted the net results of the Fed’s policy last fall. From the New York Sun:

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.

The Fed’s policy has been the monetary equivalent of two shots of whiskey on an empty stomach. You’ll feel mightily exalted for a while – until the dry-heaves take over.

This presser is going to be a must-see.

H/T Instapundit.

UPDATE: More in the New York Times.

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