Ron Paul Tells Bernanke He Killed The Dollar, Silver Coin In Hand
By: Agustino Fontevecchia, Forbes Staff
(pics entered by the Guerrilla I’m lovin Ron Paul more and more EVERY DAY!
Fed Chairman Ben Bernanke
had an interesting morning over on Capitol Hill, facing the ire of Ron Paul and receiving Democratic praise from Barney Frank. Bernanke was testifying before the Committee on Financial Services, where he said the economic recovery continues but remains frail, but was put on the spot by Ron Paul who pulled out a silver eagle and accused him of debasing the currency and destroying America’s wealth.
Ron Paul was in full campaign mode. So was Barney Frank. Bernanke was caught in the middle.
In what was supposed to be a Q&A session, the Fed chief essentially sat down and listened to one side bash him and the other love him. Barney Frank took the floor after some softballs by Committee Chairman Spencer Bachus, praising Bernanke’s tenure as Fed Chairman and pointing to continuing job growth.
It was Ron Paul, though, who took the day. In what is usually the most heated and interesting exchange of Bernanke’s excursions to Congress, the Fed Chairman was forced to sit down and listen as Ron Paul scolded him for “debasing” the currency and “destroying” the wealth of millions of Americans.
Ron Paul first asked Bernanke if he did his own grocery shopping, to which the Fed Chairman responded with a “yes.” Paul immediately cut him off and said “no one believes the 2% inflation rate,” claiming it was actually closer to 9%. “Someone is stealing wealth,” said Ron Paul, in full campaign mode.
He then pulled out a silver eagle, a silver coin that has nominal face value of one dollar that is legal tender. Ron Paul told Bernanke that in 2006, as he took the top spot at the Federal Reserve, an ounce of silver bought about 4 gallons of gas. Today, said Paul, it buys about 11.
“That’s preservation of value,” yelled an excited Ron Paul, before accusing Bernanke of loving paper money and begging him to “legalize competing currencies.” Bernanke responded by explaining that anyone can hold whatever currency they want, and told Paul he’d gladly help him figure out how to hold euros, yen, or whatever he pleases.
Paul once again lashed out, telling Bernanke “the record of what you’ve done is destroy the currency,” before saying he still can’t pay his bills or taxes with silver eagles, just as his time was running out and he was forced to forfeit the floor to California’s Maxine Waters.
As usual, Ron Paul put the focus on what he considers to be the illusory essence of fiat or paper money. This time around, though, Ron Paul didn’t let Bernanke respond, making it a one way conversation.
Gold continued to decline through the session, down 3.5% to $1,726.50 an ounce while 10-year Treasuries saw rates firm a little to 1.98%. All three major equity indices were in the red, despite major stocks like Apple and Microsoft hitting new intraday all-time highs.
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