New York, June 9 : Alaska Governor Sarah Palin is of the opinion that the economic policies being pursued by the Obama administration will convert the United States into a socialist nation.

"When you consider that the federal government is about 11 trillion dollars in debt, and we''re borrowing more to spend more ... it defies any sensible economic policy any of us ever learned through college," the former Republican vice presidential candidate told Fox News in an interview.

"It defies economy practices and principles that tell ya ''you gotta quit digging that hole when you are in that financial hole,''" she added

Her comments came as the White House acknowledged it has spent only 44 billion dollars, or five percent, of the 787 billion dollars stimulus so far - a total that has always been expected to rise sharply this summer.

Palin also railed against the government takeover of the auto industry.

"We''re borrowing from China and we consider that now we own 60 percent of General Motors - or the U. S. government does. But who is the U. S. government becoming more indebted to? It''s China. So that leads you to have to ask who is really going to own our car industry than in America."

Asked if America was headed toward "socialism," Palin replied "If we keep going down these roads nationalizing many of our services, our projects, our businesses, yes that''s where we would head."

At one point Palin described Obama as "a very nice man," but warned voters to "pay attention to his policies." (ANI)