Sarah Palin says Federal Reserve Chairman Ben Bernanke’s policy of quantitative easing will lead to inflation and a devalued U.S. currency. The former Alaska governor told Fox Business Network
on Monday that Americans understand that when the price of milk, eggs, coffee, and gas go up, the value of the dollar goes down. Merely printing more money and shoving it into the marketplace to restore economic stability, however, is not the answer.
“If the Fed starts printing money out of thin air –– which is basically what quantitative easing is: printing money without anything to back up that piece of currency –– yes, our dollar will be devalued,” Palin told Fox Business.
“Our savings accounts, our retirement accounts . . . all of that will be devalued. Couple that with what’s going on today with commodity prices going up, we are going to look at inflation.”
Palin said Bernanke’s decision to print more money to fix the economy, combined with the rising cost of commodities and unpredictable volatility of world markets, will drive inflation and needs to be questioned.
“We see what has gone on in our country and in other countries over all these years,” Palin added. “We see what can work; we see what doesn’t work. If Germany is a country that today is warning us that quantitative easing and printing money out of thin air [doesn’t work], we better rethink what the Fed is doing right now. If Germany is warning us, then that’s a signal we need to step back.
"The public has a right to question what the Fed is doing,” she said.
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