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Ron Paul Takes Ben Bernanke to Task: Is Gold Money?

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Congressman Ron Paul takes Ben Bernanke to task on the reckless spending policy of the Federal Reserve. Before questioning Bernanke, Dr. Paul uses his time on the floor to make a statement. Dr Paul begins by saying, "You know, we hear that in the future we are going to have a better economy and everybody hopes so. But it is hard for me to believe because I look back on the past three years and what Congress has done and what the Fed has done, we have literally injected about $5.3 trillion and I don't think we got very much for it. The national debt went up $5.1 trillion. Real GDP grew less than 1%. So I don't think we've gotten a whole lot."  

Dr. Paul continued, "Unemployment really hasn't recovered. We still have 7 million people that have become unemployed. And one statistic that is very glaring if you look at the chart is how long people are unemployed. The average time used to be 17 weeks, now it's nearly 40 weeks they stay unemployed. So nothing there reassures me. And also, when we talk about prices, we're always reassured there's not that much inflation ... There is still a free-market group that calculates the CPI the old fashioned way and they come up with a figure – in spite of all this weak economy – that prices have gone up 35%, 9.4% every year. And I think, if you just went out and talked to the average housewife, she'd probably believe the 9% rather than saying its only 2%. So I'd say what we've been doing isn't very reassuring with all this money expenditure."     goldmoney-kilo-gold-bar

Ben Bernanke apprehensively replies, "You are mistaken in saying that the Federal Reserve has spent any money...hmm...you say $5 trillion. We have lent money...we have purchased securities...that's not buying...that's not dissipating...you know the money, we've gotten all of the money back."

The final series of exchanges are the highlights of this reel though. Dr. Paul fires several direct questions at Bernanke, beginning with this one: "I would like to suggest that you say that its not spending money. Well it's money out of thin air, you put it into the market and you hold assets and the assets are diminishing in value when you buy up bad assets. But very quickly, if you could answer another question because I am curious about this, you know the price of gold today is $1580 and the dollar over these past three years was devalued almost 50%...when you wakeup in the morning do you care about the price of gold?"

The video can be viewed by clicking here.

SOURCE: Daily Bell

© Copyright 2008 - 2011 All Rights Reserved. The Daily Bell is an informative compendium of independent economic views and analysis, which is published by The Foundation for the Advancement of Free-Market Thinking (FAFMT).

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