NY Sun: How about sending Palin to the Fed?

posted at 10:15 am on April 25, 2011 by Ed Morrissey

Over the weekend, the New York Sun took a shot at Ben Bernanke and a whole host of economists that ridiculed Sarah Palin for her immediate criticism of the Fed’s second round of quantitative easing as inflationary and damaging to the US dollar.  At the time, even the Wall Street Journal’s pages could barely contain their derision for Palin’s warning of inflation impacting food prices and eroding consumer buying power just when they were most needed for economic recovery.  With the dollar tumbling and gas and food prices soaring, the Sun wonders whether we could do worse than to put Palin in Bernanke’s place:

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?

The New York Times tried putting a good spin on the Fed’s efforts, but as the Sun notes, it’s a doomed effort.  And even Fed members have begun publicly pushing back against QE2:

“I wasn’t a big fan of it in the first place,” said Charles I. Plosser, president of the Federal Reserve Bank of Philadelphia and one of the 10 members of the Fed’s policy-making board. “I didn’t think it was going to have much of an impact, and it complicated the exit strategy. And what we’ve seen has not changed my mind.”

One big problem with QE2 is that it attacked the symptoms rather than the problems:

As the economy sputtered last summer, Mr. Bernanke indicated in an August speech that the Fed would start a second round of quantitative easing, soon nicknamed QE 2. The initial response was the same: Asset prices rose, interest rates fell, and the dollar declined in value.

But in addition to being smaller, and solely focused on Treasuries, there also was a problem of diminishing returns. The first round of purchases reduced the cost of borrowing by persuading skittish investors to accept lower risk premiums. With markets closer to normalcy, Mr. Bernanke warned in his August speech that it was not clear that the Fed would have comparable success in persuading investors to accept even lower rates of return. …

Another indication of its limited success: Borrowing has not grown significantly, suggesting that corporations — which are sitting on record piles of cash — are not yet seeing opportunities for new investments. Until they do, some economists argue that the Fed is pushing on a string.

The actual problem in the economy is that government policies and high deficits portend massive tax increases in the near future, and regulatory adventurism promises higher operational costs.  With the current administration sending those signals loudly and clearly, capital investors have no good reason to get off the sidelines and put their capital to work.  The Fed has no control over that; they can only adjust monetary policy for a problem that monetary policy doesn’t impact significantly.  Bernanke and the Fed attacked the one problem they could address — the risk of deflation — and kicked off inflation instead.

Many of us predicted exactly this outcome last fall when the Fed launched QE2, including Sarah Palin.  We need to worry less about who’s running the Fed and more about who’s running the federal government.  That’s where the problems can actually get solved.

Update: Conservatives4Palin has a good roundup on this.


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He’s right. A lot of people have forgotten (and some are too young to remember) all the media attacks on Reagan. He was routinely portrayed as shallow and stupid. I had a lib acquaintance give me a book of cartoons back then called something like “The Search for Reagan’s Brain.” But the attacks on Palin are much more vicious and intense. They really are doing everything they can to destroy her. The fear is strong.

AZCoyote on April 25, 2011 at 12:55 PM

That’s the thing: They laughed at Reagan. Back to back landslide victories stopped the laughing. Now they attack as viciously as they can.

Kafir on April 25, 2011 at 4:00 PM

Human nature being what it is there are women of all stripes that are envious of Palin. Her accomplishments make them feel inferior. Rather than viewing her as a role model and her accomplishments as something to aspire to they are like crabs in a barrel. They do not wish to allow one of their kind to rise in rank lest they feel diminished.

I am a successful attractive female and I have been on the receiving end of a lot of envy and sabotage by other females that I thought were my friends. Women who are secure will support Palin. I have not noticed a lot of conservative female pundits be supportive of her.

ReneePA on April 25, 2011 at 4:00 PM

We need to worry less about who’s running the Fed and more about who’s running ruining the federal government. That’s where the problems can actually get solved.

FIFY

shick on April 25, 2011 at 4:12 PM

ReneePA on April 25, 2011 at 4:00 PM

Interesting post. I have assumed this to be the case for a while, but haven’t said as much. These sentiments have a lot more credibility coming from a female, like yourself, who has lived them.

Kataklysmic on April 25, 2011 at 4:13 PM

Am I missing something? The US Treasury is responsible for printing money, but the Fed can increase or decrease the money supply by what? Entering a big number into a computer? And then it can buy US Debt with with the “proceeds” from this big number it entered into the computer. No previous Fed purchased US debt. Bernanke is the first. But it is really cool that they do that, cause they do it with pretend money. Hey its just a number on the computer screen. I am waiting for the Fed to buy up all of the US debt, and then write it off as a bad investment. But in the blink of a computer screen all the debt is gone.

Dasher on April 25, 2011 at 4:16 PM

Jayrae on April 25, 2011 at 3:33 PM

Excellent. Thanks.

rrpjr on April 25, 2011 at 4:16 PM

Our family is just the opposite so I do most of the shopping. I purchase store brands and hunt for values. Kroger (a major chain in the midwest and south) uses Value Cards as a means of running sales. I used to have savings from 15% – 20%. Now I am lucky to break 10% and my shopping habits have not changes.

bw222 on April 25, 2011 at 4:00 PM

I am noticing the exact same trend.. 3 months ago I could get around 22 items for 22-23 dollars, now it is almost double. I am being very careful, I make most things from scratch, so I shop more for “raw” ingredients rathe than premade/pre-frozen. The most alarming is all things dairy… Butter is almost $3lb now, last year at Xmas is was on sale for $1.50.

kringeesmom on April 25, 2011 at 4:27 PM

If there was ever a candidate who brought out the worst in people, who encouraged hollow rejoinders but made honest analysis almost impossible,

Aside from its textbook Leftist moral inversion (let’s blame the person we hate for making us hate her) this is just really stupid and bad writing. How does someone “encourage hollow rejoinders”?

rrpjr on April 25, 2011 at 4:28 PM

CCRWM on April 25, 2011 at 3:44 PM
I think the quote was talking more about the Coulters and ingrhams of the world than about the women within the base.
unseen on April 25, 2011 at 3:54 PM

Do they have a problem with Palin? If so I’m shocked!

CCRWM on April 25, 2011 at 4:39 PM

Do they have a problem with Palin? If so I’m shocked!

CCRWM on April 25, 2011 at 4:39 PM

yes they do. along with the Peggy and Parker etc. Ingrahm out of the 4 is kind of the most fair but she still gets her shots in at times…

unseen on April 25, 2011 at 4:41 PM

Well my Sarah loving conservative self won’t buy Coulter’s book then…

CCRWM on April 25, 2011 at 4:45 PM

Palin would be great on the Fed with her common sense but we need her in the White House even more. Period.

Kudos to the NY Examiner for pointing out she was right, and Hot Air for blogging the story.

As I’ve said many times, Sarah Palin may need to dumb her message down a little — she obviously still goes over a lot of peoples’ heads. And I say that without a shred of sarcasm.

DaMav on April 25, 2011 at 4:47 PM

Well my Sarah loving conservative self won’t buy Coulter’s book then…

CCRWM on April 25, 2011 at 4:45 PM

She may find herself disappointed with the debut of her new book.

It will sell, probably pretty well, but it may fall off a little quicker than she had hoped.

I know from my point of view, I still like Ann and enjoy her TV appearances for the most part, but her incessant, near hysterical Christie boosting has been getting on my nerves, because I find it so perplexing that someone who claims to be to the right of Attila the Hun would completely ignore the issues where Christie differs with the conservative base.

Brian1972 on April 25, 2011 at 4:54 PM

Attila the Hun would completely ignore the issues where Christie differs with the conservative base.

Brian1972 on April 25, 2011 at 4:54 PM

chubbychasers are like that.

unseen on April 25, 2011 at 5:38 PM

ReneePA on April 25, 2011 at 4:00 PM

I have found this to be true as well- but mainly when I make very conservative choices for myself and my family, and the results are better than theirs. For example, my friends and family who are working moms (which I have no problem with) tend to give me a lot of grief for being a stay at home mom. I have learned that it is because they realize their more liberal choices are not giving them the results they were hoping for. I think Sarah makes people crazy for this very reason. She seems to be able to do everything, work, be a great mom, and even have troubled teens, which she handles with grace and elan. I have never been able to figure out why women can be so petty about other people’s choices. I don’t care if other moms work- I just know it wouldn’t make sense for my family. I am grateful to lots of teachers and delivery room nurses for being working moms. And I would be super grateful to Sarah if she ran!

Kristamatic on April 25, 2011 at 5:55 PM

Kristamatic -

I would love to be a stay-at-home mom. Unfortunately, I’ve been our main bread-winner for many years now, since I went back to school and started working in IT. My husband makes half of what I do, IF he gets a lot of overtime.

I was unemployed during the dot.com drop for 15 months. Although the money worries were really bad, I really enjoyed being home with my 3 kids, 10,11, and 16 at the time.

Now my youngest is graduating from high school, how time flies!

We’ve really been struggling to make ends meet and still pay for school activities. We’re hoping that the youngest two will be able to find jobs to take some of the pressure off.

So 48 more days of school-related expenses and we’re free – yeah! But with gas and food prices still increasing, it will still be a struggle.

Common Sense on April 25, 2011 at 7:05 PM

Even her website is now better than his.

unseen on April 25, 2011 at 1:24 PM

It looks really good! This firm does nice work. Should be easy to parlay this into a campaign site. ;o)

NoLeftTurn on April 26, 2011 at 12:35 AM

Human nature being what it is there are women of all stripes that are envious of Palin. Her accomplishments make them feel inferior. Rather than viewing her as a role model and her accomplishments as something to aspire to they are like crabs in a barrel. They do not wish to allow one of their kind to rise in rank lest they feel diminished.

I am a successful attractive female and I have been on the receiving end of a lot of envy and sabotage by other females that I thought were my friends. Women who are secure will support Palin. I have not noticed a lot of conservative female pundits be supportive of her.

ReneePA on April 25, 2011 at 4:00 PM

I’ve had similar experiences. Women can be their own worst enemy. When you get right down to it, the competitiveness I think women have toward each other — and I mean the negative stuff, not the kind of competitiveness that makes us all strive to become better — comes down to some kind of primitive need to be taken care of. They resent women who are prettier, more successful, better mothers, etc. because those sorts of traits attract the attention of the best men. The irony is that — at least in my experience — the women who suffer most acutely from this visceral envy are usually left of center. Conservative women are, on the whole, more secure in their femininity and therefore don’t resent other women who are as well.

NoLeftTurn on April 26, 2011 at 12:40 AM

The obtuse mocking the acute. I’m shocked I tell you SHOCKED.

hoakie on April 26, 2011 at 8:45 AM

I am a hardcore Libertarian and I am childfree by choice and they still don’t like me. I never felt like I could realistically have it all but I do not begrudge women who do seem to have it all. I am amazed by them!

ReneePA on April 26, 2011 at 9:36 AM

Sarah Palin Facebook note on Libya:

http://www.facebook.com/note.php?note_id=10150165452518435

technopeasant on April 26, 2011 at 12:00 PM

Comment pages: 1 2 3