Federal Reserve

Now Paul Ryan is claiming Ayn Rand as an influence on his outlook on monetary policy. He's trying to claim a libertarian mantel. Everything I read about this guy shows he's even more of a fraud that I thought before. He's also trying to co-opt Ron Paul supporters.

WikiLeaks cables show that Ryan supports Bernanke and the Fed's expansionary monetary policy in private in contrast to his phony rhetoric designed to attract libertarians.

"But 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."

It does not boost employment. This is a Keynesian fallacy. It creates uncertainty in the market and promotes malinvestment which wastes resources, leading to greater unemployment.

"It seems plausible, therefore, that his supposedly steadfast beliefs in small government and a hands-off monetary policy are actually inspired by opportunism – a chance created by the Tea Party and the vast fortunes behind it."

Ya think?

"This, after all, is an allegedly dyed-in-the-wool libertarian who supported the auto industry and Wall Street bailouts."

Exactly. Ignore the rhetoric. Look at the record.