Wednesday, February 29, 2012
Ron Paul gives it to Bernanke on inflation...
Ron Paul Confronts Bernanke: “Do You Buy Your Own Groceries?”
Tense stand off as Congressman notes Fed is destroying dollar purchasing power
GOP presidential candidate Ron paul took a break from campaigning today and diverted his attention back to his role on the House Financial Services Committee with the semiannual visit of Federal Reserve chairman Ben Bernanke.
In a scathing opening statement, Paul went on the offensive against the Fed:
“What we are witnessing today is the end stages of a grand experiment,” Paul said, adding that the Fed’s control over the nation’s money supply has directly caused economic bubbles and all but destroyed the purchasing power of the dollar.
Noting that the Fed will soon end because it is facilitating too much debt, the Congressman added “I’m anxiously waiting for this day… Reform has to come.”
Turning his attention to Bernanke, Paul asked the Fed chairman whether he did his own grocery shopping. A somewhat bemused Bernanke replied in the affirmative, to which Paul hit back “OK. So you’re aware of the prices,” before commenting on government denial of real levels of inflation.
“This argument of prices going up two percent, nobody believes it.” Paul said. “The old CPI says prices are going up at nine percent.”
“People on fixed incomes, they are really hurting. The middle class is really hurting. Because their inflation rate is very much higher than the government tries to tell them, and that’s why they lose trust in government.”
“You say inflation is about 2%, I say 9%, let’s just call it 5%,” Paul told Bernanke. “That inflation is taking money away from the people….Someone is stealing wealth and this is very upsetting”
The Congressman then pulled out a silver eagle, explaining that it has retained it’s real worth and that hard assets should be used as currency as outlined in the Constitution.
Telling Bernanke that in 2006, when he took over at the Fed, an ounce of silver bought about 4 gallons of gas, where as today it will buy 11 gallons. “That’s preservation of value,” said Paul.
Paul called for a competing currency to the dollar, stating that the laws should be changed to allow precious metals to settle contract disputes and other legal obligations.
Bernanke addressed Paul by jokingly saying “good to see you again, Congressman”, before somewhat derisively saying he would be happy to consider the Congressman’s ideas and help him work out what currencies to hold.
Paul hit back by saying the government goes after those who attempt to use gold and silver as alternatives to depreciating Federal Reserve notes as if they are criminals, telling Bernanke “the record of what you’ve done is destroy the currency,”