"The strategists there in the Obama campaign have got to look at a diplomatic way of replacing Joe Biden on the ticket with Hillary," the former Alaska governor and 2008 GOP vice presidential nominee said.
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While it might seem strange to her supporters and fans for Palin to offer any kind of advice to the president, she was simply stating what some Democrats reportedly advised Obama to do at the beginning of his re-election campaign.
They said at the time that Clinton — the most popular woman in America, according to numerous polls — could ensure victory.
"I don't want to throw out that suggestion and have them actually accept the suggestion, because then an Obama-Hillary Clinton ticket would have a darn good chance of winning," Palin acknowledged. "But really, Joe Biden really drags down that ticket."
Palin, now a Fox News contributor, said Mitt Romney was right to react aggressively in condemning Biden's remarks as a "disgrace to presidency", noting that if a Republican candidate had said the same thing to a similar "demographic" he or she wouldn't get away it.
"I can't think of one prominent Republican who talks the way that they talk, and certainly wouldn't get away with the way that they talk," Palin said.
"I think that [former Massachusetts] Gov. Romney now — having spent years, literally, running for president — has really grasped the notion now that this is not a dress rehearsal. This is it," Palin said. "So he has to use these powerful and truthful and accurate words to describe what President Obama is running on and what he is doing to America.
"Romney's coming out swinging," she added. "This is what we need."
"Let Americans know what this campaign is all about, his side and Obama's side, and let the voters decide," she said.