ABC News' Mary Bruce reports:
With the midterm elections behind her, Sarah Palin is shifting her focus to tackling the Federal Reserve's monetary policy. In remarks at a trade association convention in Phoenix today, Palin will call on Federal Reserve Chairman Ben Bernanke to “cease and desist” the “Fed’s pump priming addiction.”
“I’m deeply concerned about the Federal Reserve’s plans to buy up anywhere from $600 billion to as much as $1 trillion of government securities. The technical term for it is ‘quantitative easing.’ It means our government is pumping money into the banking system by buying up treasury bonds. And where, you may ask, are we getting the money to pay for all this? We’re printing it out of thin air,” Palin will say, according to the National Review which obtained a copy of her prepared remarks.
“And 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? Do we have any guarantees that QE2 won’t be followed by QE3, 4, and 5, until eventually – inevitably – no one will want to buy our debt anymore?” Palin will say. “We shouldn’t be playing around with inflation.”
The former Alaska governor also took her concerns to Twitter, posting this morning “Today:trade speech;tmrw school event 2 start discussing QuantitativeEasing w kids around US so they prepare 4 Feds experiment w their future.”
Palin’s comments come as President Obama prepares for the G20 summit in South Korea later this week, where the Federal Reserve’s $600 billion “QE2” program is expected to be a key issue.
Obama defended the policy today in India and hit back at criticisms that QE2 risks destabilizing the global economy.
“I will say that the Fed's mandate, my mandate, is to grow our economy. And that's not just good for the United States, that's good for the world as a whole,” Obama at a press conference today in New Delhi. “The worst thing that could happen to the world economy, not ours -- not just ours, but the entire world's economy -- is if we end up being stuck with no growth or very limited growth. And I think that's the Fed's concern, and that's my concern as well.”
Instead of QE2, Palin is expected to call for a stable dollar and broad economic reform. “It’s the only way we can get our economy back on the right track,” she will say.