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
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.”
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.