Sarah Palin has been bashing QE2, Ben Bernanke’s latest adventure in quantitative easing, and when the Wall Street Journal covered Sarah’s economic pronouncements like straight news, an angry mob of their relatively well-educated readers objected.
But most of their objections were personal, rather than substantial, and Andrew Polacek’s comment was typical.
Palin should stay out of things she doesn’t understand. Regardless, she is right that the Fed’s QE2 along with all the money printing in the world is not going to help us one bit.
Those Ivy-League bankers don’t want no moose-huntin’ hockey-mom to speak for them!
But most of the Journal’s readership hates Bernanke’s team at the Fed just as much as Sarah hates them, and some of their criticism of Bernanke is well-informed. For example, Thomas Dowling wrote that Bernanke’s main intention is “covering up the fact that he knew in 2006 and 2007 that banks like Citibank – and not just Citibank – were making intentionally bad loans.”
Reader Dowling isn’t really smart enough to figure that out for himself, and his comment is actually an unattributed quote from John Hussman, who has some claim to foresight about the collapsing credit bubble which continues to collapse. In 2003 he wrote…
“So the real question is this: why is anybody willing to hold this low interest rate paper if the borrowers issuing it are so vulnerable to default risk? That’s the secret. The borrowers don’t actually issue it directly. Instead, much of the worst credit risk in the U.S. financial system is actually swapped into instruments that end up being partially backed by the U.S. government.”
Now Bernanke is papering over cracks in the foundations of fundamentally unsound banks, and anybody (including Sarah Palin) who objects that QE2 won’t do much good for the rest of us is probably right, but what’s the Republican alternative, except…
More tax-cuts and deregulation!
For tea-baggers and most of the rest of the Republican Party, tax-cuts and deregulation are the magical twins which guarantee freedom and prosperity always and forever, and the only real problem with Sarah Palin as a spokes-person for Magical Republicanism is…
She’s stupid enough to believe their catechism, and usually recites it unadorned with the usual Republican pseudo-economics.
Karl Rove keeps whining about Palin’s lack of “gravitas,” but now that she’s learning some graver lingo, and chattering brightly about the Fed…
Poor old “Turd-Blossom” feels himself sliding into total irrelevance, along with so many other Bush-era confabulators, and good riddance!
Sarah Palin and Glenn Beck won the last election, and it’s time for the rest of the GOP to sing their tune.