Ron Paul Tells Bernanke He Killed The Dollar, Silver Coin In Hand

Agustino Fontevecchia
2/29/2012
Fed Chairman Ben Bernanke had an interesting morning over in 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.

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.

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