Ron Paul Embarrasses Ben Bernanke as he says Gold is not Money

Forbes
July 13, 2011

Chairman Ben Bernanke faced-off with Fed-hating Representative Ron Paul during his monetary policy report to Congress on Wednesday.  The head of the Fed was forced to respond to accusations of enriching already rich corporations while failing to help Main Street, while he was pushed on his views on gold.  “Gold isn’t money,” Bernanke said. (See video below).

While most of Bernanke’s reports to Congress serve politicians to pursue their own agendas by gearing the Chairman towards their issues, with Republican Rep. Bacchus talking of the unsustainability of Medicaid and Rep. Frank (D, Mass.) asking about the need to raise the debt limit without cutting spending, it was a stand-off between Bernanke and Ron Paul that took all the attention. (Read Apocalyptic Bernanke: Raise The Debt Ceiling Or Else).

Rep. Ron Paul, Republican for Texas, asked Bernanke why a capital injection of more than $5 trillion “hasn’t done much” to help the consumer, who makes up about two-thirds of GDP in the U.S., and prop up the economy, while it helped boost corporate profits.  “You could’ve given $17,000 to each citizen,” Ron Paul claimed.

Bernanke, clearly on the defensive, told Rep. Ron Paul that his institution hadn’t spent a single dollar, rather, the Fed has been a “profit center” according to the Chairman, returning profits to the federal government.  As Bernanke began to sermon Rep. Paul on the history of the Fed (“we are here to provide liquidity [in abnormal situations],” the Chairman said), he was interrupted.

“When you wake up in the morning, do you think about the price of gold,” Rep. Paul asked.  After pausing for a second, Bernanke responded, clearly uncomfortable. that he paid much attention to the price of gold, only to be interrupted once again.

“Gold’s at about $1,580 [an ounce] this morning, what do you think of the price of gold?” asked Rep. Paul.  A stern-faced Bernanke responded people bought it for protection and was once again cut-off, with Ron Paul once again on the offensive.

“Is gold money?” he asked.  Clearly bothered, Bernanke told the representative “no, gold is not money, it’s an asset.  Treasuries are an asset, people hold them, but I don’t think of them as money,” said Bernanke.

Rep. Ron Paul again jumped in, noting the long history of gold being used as money, and then asked Bernanke why people didn’t hold diamonds, clearly hinting at his fiat money criticism of the U.S. monetary system.  The Fed Chairman told Rep. Paul it was nothing more than tradition, and, as he was attempting to develop his argument, Rep. Ron Paul quickly asked the acting authority of the House of Representative’s Committee on Financial Services, Rep. Bacchus, to excuse him for exceeding his time, as he returned the floor to the Committee. (Read Bernanke To Rep. Paul Ryan: QE2 Created 600,000 Jobs).

The interesting exchange served as one of the few times Bernanke has been publicly pushed off his comfort zone by an elected official.  Rep. Ron Paul brought up the issues that he’s famous for, namely, a sort of allegiance between the Fed and the nation’s most powerful institutions, the illusion of fiat money, and the gold standard.  Bernanke, angered and bothered, had no option but to respond. (Read Bernanke’s Contradiction: Minutes Reveal QE3 Talk And Exit Strategy).

About Editor
The Real Agenda is an independent publication. It does not take money from Corporations, Foundations or Non-Governmental Organizations. It provides news reports in three languages: English, Spanish and Portuguese to reach a larger group of readers. Our news are not guided by any ideological, political or religious interest, which allows us to keep our integrity towards the readers.

Comments are closed.

Togel Togel Togel Online Toto Slot Togel Online Togel178 Pedetogel Pedetogel Situs Togel Terpercaya Togel178 Togel279 Toto Macau Situs Togel Bandar Togel Agen Togel Bo Togel Daftar Togel Togel279 Toto Macau Bo Togel Terpercaya Toto Togel Sabatoto Slot Server Luar Negeri rote4d rote4d rote4d togel158 togel279 pedetogel togel178 rote4d sabatoto Togel279 Rote4d Togel Online togel sabatoto pedetogel Slot88 Situs Togel Prize 123 Bo Togel Terpercaya Togel Online Daftar Akun Togel Resmi Toto Macau Toto Togel Situs Togel Terpercaya Situs Togel Via Pulsa Tanpa Potongan Daftar Togel Via Pulsa Tanpa Potongan Daftar Togel Via Dana Togel Via Dana Toto Slot Bandar Togel Hadiah 4D 10 Juta Terpercaya Bandar Togel Hadiah 4D Bo Togel Hadiah 2D bo togel terpercaya pedetogel pedetogel togel178 togel178 PEDETOGEL PEDETOGEL PEDETOGEL pedetogel pedetogel Togel Via Dana Togel Situs Toto dana toto toto togel togel via pulsa bandar togel togel178 pedetogel sabatoto togel158 togel279 pragmatic178 novaslot88 result macau bo togel hadiah 2d 200rb daftar akun togel resmi dana toto togel158 pedetogel togel279 togel158 pedetogel rote4d rote4d sabatoto toto macau toto macau togel158 pedetogel sabatoto