UPDATE 1-Palin tells Bernanke ‘cease and desist’-report

* Palin says ‘artificial’ growth could fuel inflation

* Cites German finance minister’s ‘clueless’ criticism
(Adds fresh quotes and background)

By David Morgan

WASHINGTON, Nov 8 (BestGrowthStock) – Tea Party favorite Sarah
Palin on Monday weighed in on the global debate over the
Federal Reserve’s $600 billion plan to buy up government debt,
suggesting Fed Chairman Ben Bernanke should “cease and
desist.”

“We shouldn’t be playing around with inflation,” Palin, who
is widely seen as a prospective 2012 Republican presidential
candidate, said in remarks prepared for a Monday speech in
Phoenix.

“We don’t want temporary, artificial economic growth bought
at the expense of permanently higher inflation, which will
erode the value of our incomes and our savings. We want a
stable dollar combined with real economic reform. It’s the only
way we can get our economy back on the right track.”

Excerpts of the remarks were published online by the
conservative National Review magazine. Palin’s staff was not
immediately available for comment. The report said the remarks
would be delivered in a keynote address at a trade association
convention.

Palin, the former Alaska governor and 2008 Republican vice
presidential nominee, is a top Republican Party figure and
leader of the Tea Party movement, which helped Republicans
recapture control of the U.S. House of Representatives last
week.

FED AUDITS, ABOLITION?

The loosely organized political network includes
conservatives and libertarians, some of whom would like to
abolish the Federal Reserve system, which operates independent
of the federal government.

Voter outrage over Fed bailouts and other actions helped
propel many Republican candidates on Election Day, including
Kentucky Senator-elect Rand Paul, who has favored abolition of
the agency.

His father, House Republican Ron Paul, another Tea Party
favorite who has run for president twice, intends to push to
audit Fed monetary policy decisions next year if — as expected
— he wins control of a congressional subcommittee that
oversees
the central banks.

Representative Paul Ryan, expected to become chairman of
the House Budget Committee when Republicans take control of the
chamber in January, said on Sunday the advantages of the
central bank’s move to inject more money into the U.S. economy
“are very low.”

“I think it’s going to give us a big inflation problem down
the road,” Ryan said.

President Barack Obama and other U.S. officials defend the
Fed’s decision to buy $600 billion in U.S. Treasury debt as a
means to stimulate the economy and maintain global stability.

Palin’s remarks add her to to a growing list of critics,
including officials from China, Germany and Brazil, who are
concerned that the Fed plan could bring instability instead.

“If it doesn’t work, what do we do then? Print even more
money? What’s the end game here?,” she asked. “All this pump
priming will come at a serious price.”

She appeared to align herself with recent criticism from
German Finance Minister Wolfgang Schaeuble.

“The German finance minister called the Fed’s proposals
‘clueless.’ When Germany, a country that knows a thing or two
about the dangers of inflation, warns us to think again, maybe
it’s time for Chairman Bernanke to cease and desist,” Palin
said.

Palin has not said whether she will make a White House bid
in 2012. But she has been using public appearances to build up
her political and policy credentials for the job.
(Editing by Philip Barbara)

UPDATE 1-Palin tells Bernanke ‘cease and desist’-report