[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/04/08/art.palincu0408.gi.jpg caption="Sarah Palin spoke in Anchorage on Wednesday."](CNN) - Alaska governor Sarah Palin let loose Wednesday on the Obama administration for enacting fiscal policies that "fly in the face of principles" and "defy Economics 101."
In a speech introducing Michael Reagan - the son of former President Ronald Reagan - to an audience in Anchorage, Palin warned that the government is planning to "bail out debt ridden states" so it can "get in there and control the people."
"Since when can you get out of huge national debt by creating trillions of dollars of new debt?" Palin asked. "It all really is so backwards and skewed as to sound like absolute nonsense when some of this economic policy is explained."
"We need to be aware of the creation of a fearful population, and fearful lawmakers, being led to believe that big government is the answer, to bail out the private sector, because then government gets to get in there and control it," she said. "And mark my words, this is going to be next, I fear, bail out next debt-ridden states. Then government gets to get in there and control the people."
"Some in Washington would approach our economic woes in ways that absolutely defy Economics 101, and they fly in the face of principles, providing opportunity for industrious Americans to succeed or to fail on their own accord," she said. "Those principles it makes you wonder what the heck some in Washington are trying to accomplish here."
Though the bulk of her remarks focused on government encroachment into the private sector, and praise for former President Reagan's views on limited government, the former vice presidential candidate briefly touched on national security. She told the crowd that "the terrorists are still dead set against us" and that her son Track is still deployed in Iraq.
"It is war over there, so it will not be war over here," she said. "And it had better still be our mission that we win, they lose."
She also pointed to the recent dismissal of another ethics complaint against her, one that accused the governor of having a conflict of interest for wearing a jacket to the opening of the Tesoro Iron Dog race in February that feautured the logo of the sponsor of her husband's team. Palin has been forced to set up a legal defense fund to help pay for fees related to an onslaught of ethic complaints.
Palin said of the people who have filed the complaints: "Those are the folks who want to tell me, they want to tell you, to sit down and shut up. We will not do that. I just can't, because I love my state. I love my country."