Saturday, September 1, 2012

Wikileaks Exposes Paul Ryan's True Stance on Monetary Policy & the Federal Reserve

Paul Ryan wants to come off as Ron Paul in public, but a leaked cable from December 30, 2008 betrays the role Ryan plays as a critic of the Federal Reserve. On the contrary, he approves of many of the FED's policies, but believes he knows how they can be better utilized.
Salon (Aug 14, 2012) - By Sam Knight
'... according to the aforementioned diplomatic cables, Ryan himself has recognized, in times of crisis, the merits of currency devaluation (a policy, by the way, that seems to work out well for China, in general). With the cameras off, Ryan expressed confidence in the Fed’s fight against deflation, and he recognized “the negative consequences … of taking liquidity out of the system” in times of a sharp downturn.
These policies undermine the value of the dollar, but boost employment by lowering both the cost of borrowing money and the price of the American dollar on foreign exchange markets.
Ryan’s support for them also undermines his carefully cultivated image, in the words of REUTERS as a “vocal critic of the Federal Reserve’s aggressive efforts to stimulate growth.”
LEAKED CABLE - December 30, 2008:
6. (SBU) Rep. Ryan noted that among the many tools being deployed to address the crisis, careful attention was being paid to monetary 
policy, which previously had sought to contain inflation but now 
needed to target potential deflation. He called ""historic"" the 
Federal Reserve's decision the previous day to lower interest rates 
to near zero. Ultimately, the important thing was to fix the 
financial system by requiring greater transparency and to keep 
speculation from spinning out of control. He noted the most 
optimistic projection for the duration of the present recession was 
18 months.
7. (SBU) Massa disagreed, said he expected the recession to be 
shorter, explaining his belief that the lightning speed of modern 
communications (compared to the pace of information in the 1930s) 
would accelerate the recovery. Rep. Ryan recalled that Federal 
Reserve Chairman Bernanke was one of the most prominent scholars of the Great Depression in the 1930s, and that two lessons he had drawn from Bernanke's academic work were the negative consequences in this type of crisis of taking liquidity out of the system and of enacting protectionist measures.
Ryan's public face:

Reuters (Aug 13, 2012) By Mark Felsenthal
Republican VP pick Ryan a critic of Fed policy
* Ryan has frequently sparred with Fed chairman
* Running mate criticized quantitative easing
* Backs congressional audits of Fed monetary policy
…Ryan's arguments are likely to endear him not only to conservatives who believe Fed policies are another example of big government overreach but also to supporters of Representative Ron Paul, who believes the Fed should be eliminated and that the United States should return to a currency pegged to the value of gold or silver…

Journal Sentinel
(Nov. 21, 2010) By John Schmid and Craig Gilbert
Ryan leads opposition to Fed's economic efforts
Just as harmful, Ryan warns, is that the proliferation of newly printed dollars inevitably unleashes inflation and throws the economy out of kilter in other ways.
"Inflation is a killer of wealth. It wipes out the middle class. It eviscerates the standard of living for people who have retired or are living on fixed incomes," he said. "Name me a nation in history that has prospered by devaluing its currency."
As the incoming chairman of the powerful House Budget Committee, Ryan's blasts carry newfound weight. And he's hardly alone in his castigations; the past week's unrelenting attacks on the Fed mark an unusual turn in the economic debate.
In 2010, Ryan stated:

"There is nothing more insidious that a government can do to its people - than to debase it's currency"

Wikileaks Exposes Paul Ryan's True Stance on Monetary Policy & the Federal Reserve | Peace . Gold . Liberty | Revolution

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