Tuesday, November 9, 2010

Sarah Palin Smacks WSJ

Yeah, I know she's controlled, but if WSJ is taking a swipe at her, she is at least doing  something right. WSJ was really reaching in its critique of Palin's recent speech (which might have been her best ever). WSJ's Sudeep Reddy started the attack with this:

Former Alaska Gov. Sarah Palin, in remarks to be delivered today as reported by the National Review, offers a largely conventional critique of the Federal Reserve’s latest round of quantitative easing. The most notable aspect may be who is delivering it, rather than the content of the message.
"Largely conventional", yeah right. She called for Bernanke to cease and desist!

  But, get a load of this TOTAL smackdown of Reddy by Palin, from her Facebook page:

Ever since 2008, people seem inordinately interested in my reading habits. Among various newspapers, magazines, and local Alaskan papers, I read the Wall Street Journal.

So, imagine my dismay when I read an article by Sudeep Reddy in today’s Wall Street Journal criticizing the fact that I mentioned inflation in my comments about QE2 in a speech this morning before a trade-association. Here’s what I said: “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.”

Mr. Reddy takes aim at this. He writes: “Grocery prices haven’t risen all that significantly, in fact.” Really? That’s odd, because just last Thursday, November 4, I read an article in Mr. Reddy’s own Wall Street Journal titled “Food Sellers Grit Teeth, Raise Prices: Packagers and Supermarkets Pressured to Pass Along Rising Costs, Even as Consumers Pinch Pennies.”

The article noted that “an inflationary tide is beginning to ripple through America's supermarkets and restaurants…Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months.”

Now I realize I’m just a former governor and current housewife from Alaska, but even humble folks like me can read the newspaper. I’m surprised a prestigious reporter for the Wall Street Journal doesn’t.


  1. Sexy Sarah quotes a headline that reads, "Food Sellers Grit Teeth, Raise Prices: Packagers and Supermarkets Pressured to Pass Along Rising Costs..."

    It is cost-push that drives inflation, Mr. Wenzel. Before you reject that thought entirely, let me perhaps agree with you that it is accommodation by the Fed that allows the cost-push forces to actually raise prices.

    But from the business' point of view, the options are to raise prices or to go out of business. This problem forces the Fed's hand.

    (I'm not saying the Fed has the right solution.)


  2. Reddy needs to get a clue. I'm not a Palin fan, but for Reddy to make the comment that "grocery prices haven't risen all that much" is partially true. They haven't - yet. But Reddy obviously does not understand how the process works. I work for a large consumer products company. In the past 30 days, every major competitor has announced price increases to our customers (the grocery chains and walmarts of the country).

    The process works as follows: usual contracts dictate a 60 to 90 day notice on all price increases to the customer before prices go up to them. If you consider their margin requirements, AND the fact that approximately 75% of the grocery store is represented by the companies that recently announced price increases, then you are looking at 3/4ths of the grocery store going up in price between 2 and 10% by January 15th or so. This is a FACT.

    What say you, Reddy?

  3. Wenzel,

    Do you see what you have done? Do you now see the can of worms you have opened with your use of "inflation = rising prices"? Now you have confused people like the Arthurian coming along saying "cost-push drives inflation."

    Good luck sticking these worms back in the can now that you've abused the language and left yourself with no linguistic concepts to refute him.