Palin talks tough to kids on quantitative easing
Now that the midterm elections are history, Sarah Palin is setting her sights and rhetorical skills on the Federal Reserve and its easy money policy.
On Twitter, the former Alaska governor and possible 2012 presidential contender said she would begin a round of discussions at school events to teach children about quantitative easing to prepare them for the results of the Fed’s plan to boost the sluggish U.S. economy.
“Today:trade speech;tmrw school event 2 start discussing QuantitativeEasing w kids around US so they prepare 4 Feds experiment w their future,” Palin tweeted.
More than a few kids may be baffled by quantitative easing.
In an effort to boost lackluster growth the Fed has been injecting cash into the economy by buying up government securities in what it calls quantitative easing. It announced a fresh round of $600 billion in purchases last week and the action was welcomed by the stock market which moved higher on the news.
But critics, such as Palin and conservative Republican Ron Paul who is likely to head a House monetary policy subcommittee when the new Congress is seated in January, say the Fed’s move will do little to encourage economic growth and will ignite inflation.
Paul, who has written a book called “End the Fed,” says the independent central bank is too independent.
Created in 1913 to stabilize a turbulent U.S. banking system, the Fed is no stranger to protests over its policies. It was blamed for turning a recession into the Great Depression by tightening the supply of money. In the late 1970’s the Fed moved to tackle soaring inflation and the rising interest rates unleashed a torrent of criticism from builders, some of whom sent notes to the Fed written on pieces of wood.
By the early 1980’s, interest rates soared to as high as 20 percent and Midwest farmers were protesting high debt servicing costs and low farm incomes and land values.
Photo credit: REUTERS/Scott Audette (Former Alaska governor Sarah Palin speaks during the Republican 2010 Victory Fundraising Rally in Orlando, Florida, October 23, 2010)