The National Inflation Association (NIA) has backed former Alaska Governor Sarah Palin in her opposition to the proposed Federal Reserve stimulus measure.
After the Fed announced last week that it would buy up to $900 billion in Treasury bonds in an effort to stimulate the economy, Palin urged Chairman Ben Bernanke to "cease and desist," and expressed her opinion that the Federal government "shouldn't be playing around with inflation."
The former vice presidential candidate subsequently came under fire for her comments. The Wall Street Journal staff reporter Sudeep Reddy penned an article about food inflation, which suggested that the consumer price index's (CPI) measure of food and beverage prices has risen by less than 0.6 percent in the first nine months of this year.
However, NIA representatives countered this argument, saying that the Bureau of Labor Statistics (BLS) CPI is not a reliable indicator of any type of price inflation. In fact, the organization believes that the BLS has artificially manipulated the CPI downward, and the real inflation rate may be closer to 5 percent and may rise to more than 10 percent by early 2011.
NIA also expressed concern that if the current policies continue, the average American will depend on the government to survive by the 2012 presidential elections.
"Obama's strategy to get re-elected is to make as many Americans as possible dependent on him and scared to elect a true Libertarian candidate like Ron Paul, who will dramatically reduce government spending in an attempt to prevent hyperinflation," the organization stated.