The link takes me to a blank page with a tiny little symbol of some kind in the top lefthand corner.

Sarah Palin is the smartest moronic bimbo evah! And she's still their byword for hick stupidity. I'm really enjoying it at this point.

First link is to a wordpress GIF file...

Of course Palin knew - so did anyone else who understands that manipulation of fiat money leads to nothing but pain...

So Quantitative Easing doesn't work? Who knew?

... "is unlikely to go away soon soon as a selling frenzy hits the currency market"

http://www.zerohedge.com/article/china-proposes-cut-two-thirds-its-3-trillion-usd-holdings

"doh!" Who saw this coming? \big expensive sarc

no one will ever even fire a shot !!! and you americans will soon start to see what slavery is all about way to go , carter,bush,clintonand obama...you fools you have ruined your and my countries !!!

why is it that the simplest thing's are so hard for the elites to grasp like if you don't have the money you don't buy it!!

It's lucky for us that the U.S. dollar is diving against the loonie or inflation here would be really bad and not just bad (especially for produce over the winter).

And while the WSJ has changed its tune a bit now, I remember them (or maybe 'just' a columnist?) taking her to task for saying inflation was a problem starting to hit.

"page one of the New York Times"

now, kate. this has got to stop.

continually linking to the hated MSM just does no earthly good to your reputation as a leading media basher.

The Fed knew what would happen. It was deliberate. Can't get a one world order without weakening the US first.

This has been deliberate on the part of the Fed since it's inception in 1913.

Carroll Quigley was Bill Clinton's professor.

http://www.youtube.com/watch?v=2R8LgD-jFtk

She has fished. QE is like going out, getting a catch, selling it to yourself at consumer prices and wondering why you can't pay the bills.

Actually this idiot crowd about OBOZO thinks creating more government jobs will increase tax revenue by creating more taxpayers....or claim to...

Sort of like us all making a living by taking in each others laundry.....

fiddle
You are so right IMHO....why else continue to raise spending, refuse to cut spending, raise the debt ceiling???

Just like CO2 AGW...one world government is the goal.

Palin knows policy

I am continually shocked at how many Canadian Conservatives still like Obama and can't stand Palin. I got into an argument with some such idiot at a Harper rally in Burnaby a few weeks back as he claimed Obama was a victim of Bush and Palin was the biggest dolt ever! Almost all of the these Conservative Obama supporters justify him by saying he's way better than that idiot Palin would have been. What gives?

You can subsitute my name, and perhaps several million others for SP's

Great vid from the Wall Street Journal discussing Palin vs. Bernanke. (first 4:30 min anyway)

(via a C4Palin commenter)

http://online.wsj.com/video/opinion-journal-palin-vs-bernanke/6A8B3973-6069-464E-B48B-4D4564C96DE5.html?mod=WSJ_article_related

he's way better than that idiot Palin would have been.

And the dip seems to have been under the mistaken impression (gee, I wonder where he got that idea?) that Palin was going to be president and not vice president. BTW, did he have neatly-pressed pants' creases? ;^)

Palin knew first? Compared to who?

This has been common knowledge on financial blogs like zerohedge and the Daily Reckoning since, I don't know, TARP was introduced. That's about four years and counting. I don't recall word one from Palin about this when she was on the campaign trail.

I like Sarah Palin, but anyone who thinks she's a macroeconomic genius really needs to get a grip. I doubt she could define each term in Y = C + G + I - Ex + Im, let alone understand the third and fourth order effects of central bank intervention.

Silver has surged, in HK...now at $49.27/oz as I type this.
(Gold also)

The other angle that's not really brought out here is something that fiscal conservatives have also said. Namely that this policy was going to seriously irritate (to put it mildly) all the holders of US dollars and debt. How do you think China feels about this? What does the US administration think China's response might be at the next rollover of US long term sovereign debt? And some of the other big purchasers of US bonds like, say, Deutsche Bank?

S&P issued a credit warning last week on US debt. The pundits all said that it wouldn't happen for some time and was a warning only. Might happen a lot sooner if the bond market really puts the squeeze on US government securities. And when it happens, it can happen very fast.

Inflation is one thing; the pounding the US is about to get in long term interest rates is going to be very fast and very hard. We're looking at well into double digit interest rates on long bonds probably before this summer.

And what's the result? As DaninVan notes, money gets chased from potentially productive areas into economically useless areas like precious metals as investors try to hedge against inflation. Congratulations, Obama, Pelosi and Bernanke. The sum effect of what you've done has been to drive money out of US denominated securities and inflate the price of gold.

And smaller, reliable currencies like ours are going to get forced to the Moon as well. If a stampede starts, we could be looking at a dollar worth 50 cents Cdn before the end of the year.

Marvelous. Sheer genius.

Between them, the current White House and Nancy Pelosi's House majority are going to go down as the most incompetent US fiscal policy makers ever. I don't blame Bernanke too much for this. He's trapped by the sheer stupidity of US lawmakers and the budgetary process.

cgh:

China, which already holds approximately $3 trillion in US dollar reserves, has been musing out loud that they need to reduce the amount of USD reserves they have to $1 trillion. Imagine $2 T dumped on to the markets; think what that will do the value of the USD (down) and to gold, silver, and the loonie (up).

Personally, since I'm being paid in USD right now, I'm pissed.

Kevin, I suspect what will happen is not that China will dump US dollars. Dumping 2T will simply tank the value instantly, and that's the last thing China wants. The old adage about owning the bank when you owe them enough holds true here. However, I suspect they will be among those pushing for huge increases in US long interest rates. THAT'S the real killer here, when the US can't borrow money at anything more than say 3-5 year terms.

What everyone seems to have forgotten in the Beltway is that inflation functions as a pay cut to the value of the inflation rate for everyone like you getting paid in USD. The average American citizen is about to have his and her standard of living tank fairly dramatically.

You are right to be pissed, but remember, the US has been following a weak dollar policy for the last 10 years or so. This didn't happen overnight; this is simply the last desperate slide over the cliff edge. Once confidence is lost in a currency it's gone for a long, long time. Where now are the Reichmarks, Assignats, Concordats and a host of other paper currencies that collapsed in hyperinflation?

The problem will not be fixed until in US popular culture, policy and mass media concerns for a balanced budget and a reliable currency EXCEED concerns over social programs and entitlements. And they're nowhere near that yet. Say what you like about Jean Chretien, but he did understand all this clearly in the 1990s and went after spending with a butcher's axe. Canadians publicly accepted and were resigned to the fact that there was going to be a lot of misery to come to fix things. And our problems then were nothing like the Americans' problems now.

This is going to hurt. A lot. And we are going to suffer heavily as well, particularly in our manufacturing sectors as the US settles into a long term depression.

One last thing, the American public, like Canadians, ALWAYS votes their wallets. The Obama administration is doomed. The next 18 months is plenty of time for the US middle class to start suffering like they haven't since the Dirty Thirties. Christ could come down and make him a saint and the voters will still send him to electoral hell in 2012.

Well, the price of oil in terms of gold (about 13 bbl/oz) is well within historic limits - leading to the question, "what increase in oil price?"

It's called inflation, kiddies.

I find it very telling that the last paragraph on the Instapundit page is from a so-called "financial historian", who says he strongly *agrees* with what Bernanke has done and that deflation had to be avoided at all costs. There is just no reasoning with academic elites (Bernanke himself is one). They will continue to insist, while the world burns around them, that they were right all along.

The "all cost" of avoiding deflation is going to turn out to be a complete collapse of the American economy and/or government under the impossible strain of its debt. All that QE and QE2 have done is delay the inevitable and make the final reckoning that much harder to deal with. But it allowed a bunch of the banker elites a few more quarters of billion-bonus-bonanza at the expense of everyone else, which I believe was the true goal all along.

The American middle class is in the process of being crushed now, and the tipping point that takes it and the country into the next recession/depression - $4/gallon gasoline - is rapidly approaching. What happens after that, I don't know, but it won't be pretty for anyone involved. We Canadians will certainly feel a lot of their pain through our interlinked economies.

Has QE worked. Well, if you believe that there was serious deflation lurking then it has worked, for the purpose it was intended to work.

As for the other problems. Well QE has to stop because it does debase the currency ultimatley. The issue is the debt and more importanly the deficit. QE while you continue to refuse to get your fiscal house is unsustainable.

The focus of the fire needs to be on the US fixing its income statement, the balance sheet can be dealt with other ways. In business terms the US has bought some time by jiggering around its balance sheet, but ultimatley you have to get your operations in order. Cut now or slash later is the choice, it only gets worse.

Lawrence Solomon's National Post article was right, the problem iis raising the debt ceiling, as opposed to the problem being not raising the debt ceiling.

As for a higher than expected Canadian Dollar. Well I can only hope that Canadian business uses this time to buy US machinery at bargain basement prices and move itself up the productivity curve, thats the response to this. However, I fear we will just use it as an excuse to cut labour without transitioning to capital.

And yes we shoudl accelerate our deficit elimination so we dont get whipsawed when rates go up. You dont want to be competing for debt when it becomes scarce.

Still no one figured it's outsourcing? LMAO.

check this out: (from an email I got)

http://www.youtube.com/embed/VtVbUmcQSuk

and another thing, if the great US of A is the model of capitalism, the bastion of free enterprise, why are they in such a pile of shyt?

could it be like so many things in nature, capitalism contains the seeds of self correction? 'the good life' cannot continue unabated?

whall shucksamighty !! we gots some prime examples of that already !! 1929, 1988, etc etc. (they seem to be happening more frequently eh?)

What KevinB said at 7:41. However, I was encouraged to hear one of her handlers say that she was a quick study

Was Palin the first to think of the economic folly of Obama, Pelosi, Reid et al ?? Absolutely no.

Was Palin about the only US politician with enough fortitude to speak out against the beltway, the old boys club and the politically correct? Absolutely YES!!

THAT!! I think is the point of Kate's post.

Exactly, Ron. The old saying "An expert doesn't have all the answers but rather knows where to find them." certainly applies here.

they don't teach this in high school.

what is this? whats going on in China?

http://www.realecontv.com/videos/china/real-estate-madness-in-china.html

Wrong. Peter Schiff, Ron and Ran Paul all saw this coming from years away along with Reason mag and Cato. Palin, in classic fashion, just latched on for the ride. Amazing opportunist.