Paul Ryan v. The Fed

Ben Bernanke is warning the US of a dire future filled with high interest rates, crushing debt, and a weak dollar. He is calling on Congress to save the day. However, Bernanke is also warning Republicans to pay no attention to the man behind the curtain.

Bernanke has just cause to be concerned. After the Fed’s $600 billion cash creation used to buy US debt, Republicans are focusing on limiting the Fed’s ultimate fiscal power. Led by Paul Ryan, Republicans are looking to take away the Fed’s responsibility to create jobs. This would mean a much less powerful position for Ben Bernanke.

Normally, such an idea would be discarded. But after years of Fed manipulation creating no job growth and looming inflation that Bernanke swears is not there, the public might be ready to rein in the Fed’s power. Even crazy idea’s like Ron Paul’s idea to audit the Fed are gaining traction. Congressional oversight of the Fed? Truly a novel concept.

If Paul Ryan succeeds in bringing down the Fed’s unlimited economic power, he will be a household name by this time next year. But it won’t just be taking on Bernanke that makes him infamous.

Republicans are betting on austerity. They are counting on cutting debt and returning more money to the private sector as the way to restore our economy. Across Republican run states and in DC this is the strategy. Paul Ryan has been chosen to spearhead this effort. His ambitious plans include revamping Social Security and Medicare, and spending cuts in many areas politicians are normally wary about touching. If it works quickly, Paul Ryan could be very popular in 2012.

4 Responses

  1. What’s your source for this? I haven’t seen any suggestion that Ryan wants to take away the Fed’s full employment mandate.

  2. I dont see it in your link, but this story references the fact that Ryan has sponsored a bill to remove the Feds full employment mandate (although it doesnt sound like he mentioned this at the committee hearing):
    http://thehill.com/homenews/house/143141-bernanke-dismisses-inflation-fear-at-gop-led-house-debut

    Its interesting that Democrats who criticize the Fed support the full employment mandate, which is completely responsible for the Feds reckless behavior:
    http://www.huffingtonpost.com/2010/11/22/federal-reserve-critics-i_n_787089.html?ir=Business

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