Sunday, December 19, 2010

Latest Stat's;Palin Right About Inflation Dangers,Her Detractors (Joe Klein/Time) Wrong Once Again.

In a major policy statement in early November (in contrast to the idiotic advice from Joe Klein of Time Magazine that "She has no positions on any issue") Sarah Palin warned of the dangers of inflation due to the money printing of Bernanke's Reserve Bank

"All this pump priming will come at a serious price. And I mean that literally: everyone who ever goes out shopping for groceries knows that prices have risen significantly over the past year or so. Pump priming would push them even higher. And it’s not just groceries. Oil recently hit a six month high, at more than $87 a barrel. The weak dollar – a direct result of the Fed’s decision to dump more dollars onto the market – is pushing oil prices upwards. That’s like an extra tax on earnings. And the worst part of it: because the Obama White House refuses to open up our offshore and onshore oil reserves for exploration, most of that money will go directly to foreign regimes who don’t have America’s best interests at heart."
This prescient statement attracted,of course,criticism from the left, for whom a gut negative reaction to all things Palin comes ahead of the professional detatched analysis they are supposed to provide. There were sensible voices from the professional financial community who, as they deal in the real world, saw the truth of her analysis.

Here is what has happened in the real world, reported, ironically by the San Franciso Chronicle, in the bastion of liberalism, just a month and a half after Palin's sage comments;

"For the first time since 2008, inflation is hitting consumers in the stomach.
Grocery prices grew by more than 1 1/2 times the overall rate of inflation this year, outpaced only by costs of transportation and medical care, according to numbers released Wednesday by the U.S. Bureau of Labor Statistics.
Economists predict that this is only the beginning. Fueled by the higher costs of wheat, sugar, corn, soybeans and energy, shoppers could see as much as a 4 percent increase at the supermarket checkout next year.

"I noticed just this month that my grocery bill for the same old stuff - cereal, eggs, milk, orange juice, peanut butter, bread - spiked $25," said Sue Perry, deputy editor of ShopSmart magazine, a nonprofit publication from Consumer Reports. "It was a bit of sticker shock."
But it makes sense. Since November 2009, meat, poultry, fish and eggs have surged 5.8 percent in price. Dairy and related products have gone up 3.8 percent; fats and oils, 3 percent; and sugar and sweets, 1.2 percent.
While overall inflation nationwide was 1.1 percent, grocery prices went up 1.7 percent nationally and 1.3 percent in the Bay Area, said Todd Johnson, an economist for the Bureau of Labor Statistics office in San Francisco. "The largest effects on grocery prices here over the last month were tomatoes, followed by eggs, fish and
seafood."

But it makes sense. Since November 2009, meat, poultry, fish and eggs have surged 5.8 percent in price. Dairy and related products have gone up 3.8 percent; fats and oils, 3 percent; and sugar and sweets, 1.2 percent.

It is clear that not only does Palin understand the real life situations of the average person who is facing rising prices for staples, in contrast to the Beltway elite who live in a closeted world unaware of the struggling lives of the great mass of poor and middle class they purport to champion, but that she has positive policy prescriptions which, time after time, put the lie to the leftist talking heads who wrongly decry her on exactly that point
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