Archive for November 10th, 2010

Why Palin will never be president. Volume 56,711

Nov 10, 2010 in Politics

I thought that the Fed writing itself a check for a trillion dollars would be scrupulously ignored by the usual band of free market theologians just as they did with TARP and the take-overs of AIG and GM (IOKIYAR) but Red State pinup girl Sarah Palin couldn’t let an opportunity to use the words “Keynesian” and “bad” in the same canned tirade go to waste:

“We shouldn’t be playing around with inflation,” Palin, who is widely seen as a prospective 2012 Republican presidential candidate, said in remarks prepared for a Monday speech in Phoenix.”We don’t want temporary, artificial economic growth bought at the expense of permanently higher inflation, which will erode the value of our incomes and our savings. 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.”

What does that even mean, anyway?

Inflation is the least of our worries right now and there’s no sign that it’s going to be an issue in the future. That is unless you’re a paid shill for Goldline or some other house of ill repute looking to cash in on the paranoia of rubes.

And what’s with the Keynes bashing by all of the mouth breathers? Bernanke is as much of an adherent to Milton Friedman as he is Maynard Keynes. The idea of “quantitative easing” by the Fed is pure Friedman: shrinking interest rates even further by buying back its own government issued bonds so characterizing Bernanke as this Kool-Aid drunk, pump-primer is at odds with reality. The stimulus package was Keynesianism. QE is all Friedman.

All is not lost though. Even true-believers like Rand Paul do 180 degree turnarounds when they get into the big chair. I just noticed today that he’s actually come out in defense of congressional earmarks. This is the party that’s supposed to make serious budget decisions?

-mg