Sarah Palin can see Zimbabwe from her house

Exhibiting a “more sophisticated knowledge of monetary policy than any major Republican this side of Wisconsin Representative Paul Ryan,” Sarah Palin calls on Chairman Ben Bernanke to cease and desist his “pump priming,” in a speech delivered to a trade association yesterday. The effect of quantitative easing or pump priming has been disastrous in Germany and Zimbabwe in the past, leading  to a devalued currency and hyperinflation.  The Wall Street Journal notes Palin calls for real and sustained growth as she elevates discussion on monetary policy debate:

Stressing the risks of Fed “pump priming,” Mrs. Palin zeroed in on the connection between a “weak dollar—a direct result of the Fed’s decision to dump more dollars onto the market”—and rising oil and food prices. She also noted the rising world alarm about the Fed’s actions, which by now includes blunt comments by Germany, Brazil, China and most of Asia, among many others.

“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 former GOP Vice Presidential nominee said. “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.”

This praise for Palin’s knowledge of monetary policy from the Wall Street Journal stands in stark contrast to criticism from from another Wall Street Journal reporter who seems not have read his own paper.  Sarah Palin delivers a masterful rebuke as she wonders, Do Wall Street Journal Writers Read the Wall Street Journal :

So, imagine my dismay when I read an article by Sudeep Reddy in today’s Wall Street Journal criticizing the fact that I mentioned inflation in my comments about QE2 in a speech this morning before a trade-association. Here’s what I said: “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.”
Mr. Reddy takes aim at this. He writes: “Grocery prices haven’t risen all that significantly, in fact.” Really? That’s odd, because just last Thursday, November 4, I read an article in Mr. Reddy’s own Wall Street Journal titled “Food Sellers Grit Teeth, Raise PricesPackagers and Supermarkets Pressured to Pass Along Rising Costs, Even as Consumers Pinch Pennies.”

The point is not really grocery prices have risen significantly in the past year as Mr. Reddy counters.  Consumers will feel the real time effects of inflation as the Fed undertakes the risky measures that may or may not have any real effect in unclogging the lending pipes to spur a temporary economic growth.  As Palin notes, 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?”

History tells us all this money printing takes us to Zimbabwe.  Former governors and current housewives will be among the first to see Zimbabwe from their homes.

Also blogging:
Anne Leary – Palin on Point on the Fed. WSJ: Sophisticated Knowledge
Palin pops a persistent meme bubble at POWIP
This topic currently at the top of Memeorandum as well.

cross posted at Ruby Slippers