Ron Paul questions Ben Bernanke about World Currency




Ron Paul questions Ben Bernanke about his secret meetings with other central bankers. What have they been talking about? Is the dollar finished and is there a new world currency on the agenda? What role is gold going to play, if any? Bernanke, while remaining evasive about the details of his meetings, denies the rumors and asserts that the dollar is not dead.

Ron Paul: The Austrian free market economists had predicted all these problems would come, and they were certainly correct in everything that they said. Of course they’re not very satisfied including myself with the so-called solutions, because it looks like we’re spending a lot of energy and a lot of money trying to patch a system together that is unworkable.

So we have Congress spending a lot of money, we have Treasury very much involved in trying to pick and choose which worthless asset that we’re going to buy, and of course the Federal Reserve is involved in injecting trillions of dollars that nobody seems to be keeping track of.

But what we’re failing to do I think is to recognize that the system no longer works, but I can understand why we do this because if Congress couldn’t do this and if the Fed couldn’t do this and Treasury couldn’t do this, it would make us all irrelevant. And instead of looking at the causes of this, and then finding the solutions aren’t going to be found here, we have to make ourselves feel pretty important.

But I think there’s another reason we think we’re pretty important, it’s because in a way our interference in the market corrections that tried to come about since 1971 seem to work. I mean, the failure was established in 1971 with a system that had no way of automatically correcting the balance of payment and the current account deficits.

And that’s where the problems have been, and economists – whether they were left or right or middle – over the last several decades have always said, this current account deficit is a big problem. And now it’s totally out of hand. So here we are struggling with all these rules and shifting back and forth and really getting nowhere.

My question is directed toward, when we come to the full realization that the system is unworkable, what are we going to do, what have you thought about doing, and already we see talk in the newspapers. We see articles about a new international world reserve currency, and to me that’s pretty important, because the fiat dollar reserve system is not going to work anymore, and that’s the information that we have to accept and decide what we’re going to do in the future.

Also, this is not new in history. Currencies have failed, financial systems have failed, and generally, to restore the confidence that everybody is talking about, they usually have to go back to a currency with integrity to it, rather than just fiat money.

And, you know, the stages is there. It’s not impossible, already the central banks of the world still own 15% of all the gold that was ever mined in all of history. So they hold on to this gold for some reason, and therefore something has to give, or are we going to keep trying to waste more money and time patching this system together.

Just last week there was a report that Iran purchased 75 billion dollars worth of gold, took their reserves out of Europe, bought gold and put it in Asia. So is that a sign of the times, is that moving on?

My question is, in your meetings, and you had a meeting just recently with other central bankers, does this thought come up about a new international world reserve currency, and if so, does the subject of gold ever come up?

How do you restore the confidence? Have you recently had conversations with any central banker, and is there a move on to replace the dollar system, because the dollar system is essentially declared dead, because it’s not working, but this indeed was predictable because of these tremendous imbalances that were never allowed to be corrected, and they were always patched up. We always came in. We’d spend, we’d inflate, we would run up deficits, and since ’71 we’ve been able to correct these problems.

Could you tell me what kind of conversations you’ve had regarding a new reserve currency?

Ben Bernanke: Yes, Congressman. I don’t think the dollar system is dead. I think the dollar remains the premier international currency. We’ve seen a good deal of appreciation in the dollar recently during the crisis precicely because there’s been a lot of interest in the safe haven and the liquidity of dollar markets.

And the Federal Reserve has been engaged in swap agreements to make sure there’s enough dollar liquidity in other countries because the need for dollars is so strong. So I think the dollar system remains quite strong.

I do agree with you very much on one point, which is about the current accounts. The current account imbalances have proved to a very serious problem. It was in fact the large capital inflows in those current accounts which created a lot of the financial imbalances we saw and have led to some of the problems we are seeing, and one of the silver linings in this huge grey cloud is that we’re seeing some improvement and greater balance in our current account deficits.

Ron Paul: But does the subject of a new regime ever come up?

Ben Bernanke: No, it doesn’t.

Ron Paul: And does the subject of gold ever come up in any of your conversations?

Ben Bernanke: Only in terms of the sales that the central banks are planning.

Ron Paul later released the following comments:



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72 Comments:

  1. WHAT, NOT RADICAL ENOUGH FOR YOU...WHAT ABOUT THIS ONE?

    I say we take the top 5% wealthiest people in the world, take all that they have in their possession and throw the entire family trees in prison. We then perform full investigations and audits to uncover all the wrong doing.

    I would bet pretty much anything that the top 5% in the world are either corrupt or born into corruption...either way it frees up some cash for the system.

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  2. PSYCHO BABBLE!!!!
    This is what people think when they hear Ron Paul. His platform as it relates to the constitution is very sound and very patriotic.

    Anytime that anybody brings up a GOLD STANDARD you lose your audience. Basing a currency on a finite resource is not even funny as a joke. Imagine for a moment that we go to a gold standard and then some small company finds out they are on top of 1000 tons of gold...now middleofnowhereville becomes the richest nation on earth? or simply the soviet union with endless stockpiles of gold, oil and diamonds simply purchases the planet?

    _____ BASING CURRENCY ON FINITE RESOURCES IS FOR THE DARK AGES ___

    We need FIAT, we need made up algorithms, we simply need them to be defined and monitored and audited.

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    • Fiat currency means politicians have freedom to issue as much money as they want with no limitations. The federal reserve takes an income from the interest they charge and BUY GOLD. it is sitting under New York City. Why would the Federal Reserve buy gold? because you are right or because you are wrong.?
      A currency backed by something anything gives it value, restricts supply and limits governments spending habits.
      Also, countries that lend us "money" have no recourse when we default on the ballon spending and continue to devalue the currency. It's that simple, Doug the dope

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  3. I've read the above blogs, and almost everyone makes sense. I have not heard Bernanke a lot, so this may be misplaced, but did you hear the waver in his voice as he presented his "facts". Although RP put Bernanke on the spot, RP could have concluded his initial question a little better.

    I've joined several "meetup groups" in my local area. But, I must admit I RSVPed "no" to tomorrows event because of a conflict with my sons Cub Scout meeting. We all have busy lives, although some of the time may be wasted on the "idiot box", to a greater extent I personally have a very busy life (a good part of that goes toward filing taxes, keeping records for my business [government requirements], etc., etc.). I have been saying for years to my relatives and friends that it is the plan of the people in charge to keep us occupied (it used to be from noticing the fact that "they" keep putting "their" hands in our pockets) but lately it "they" have greatly expanded.

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  4. I love Ron Paul and am very familiar with Austrian economic theory. My only criticism is in Paul's delivery, which seems to be directed at those who already understand the intricacies of sound money. My advice would be for him to adopt a clearer, simpler, and better organized message. Paul is the only person out there who is taking on the real entrenched establishment. He needs to simplify his message to reach the average citizen.

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  5. Ron Paul knows as well as most reading and posting to this page that all this so-called bail out amounts to is a "dog and phony show". It's designed to destroy the middle class by sucking up all our assets before they "formally" crash the dollar and world economy to complete the mission of a global elite international banker take over to enslave the entire planet. One of these days I hope to see every one of the Bush cabal and the elite right up to the witch of England tried for international war crimes and then promptly sentenced. They are all genocidal trash of the worst kind. With regard to president Kennedy's executive order 11110, he was murdered by the thugs of the so-called federal reserve for issuing that order which kicked them out of the counterfeiting, public rape and pillaging business but his order is still very much active. It's just that no one in this criminal no good government of ours has the intestinal fortitude to do anything about it. They are all traitors, criminals, cowards and just a mob of reprehensible scum in general.

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  6. I will watch the movie, although I am a Christian and not too fond of that being referred to as myth.

    Although I feel infowars has some legitimate information to offer, those referred to as "conspiracy theorists" have no credibility with the general public, and therefore those who try to make serious change evoking that stuff are brushed off as a bunch of nuts. It's like throwing the baby out with the bathwater, if you know what I mean. Therefore, I think it's important to offer sources that the general public will have more trust in.

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  7. well obviously ben bernanke is lying on that video (and all the time, for that matter)! you can see it in his eyes when he is replying to ron paul. as is henry paulson when he comes out and does his jaw jackin'. these 2 characters along with the Bushes, Rockafellers and Rothschilds are taking Americans to the cleaners while maintaining an "everything is going to be alright...you just gotta' give it some time (and another trillion dollars)" attitude (which is obviously a front).

    but this plan is nothing new and these result are the results of a plan that's been in the works since george bush senior became president back in 1981, oh yeah right... i meant ronald regan. but if we believed that lie, i guess we can believe that paulson, bernanke and bush jr. are sincere about helping America/Americans out.

    and i, also have a question...
    what ummm...happened to all that uhhh...GOLD that disappeared from the world trade center basement on Sept. 11 2001 (did we forget about that)???

    everyone should watch "zeitgeist", "zeitgeist adendum", "the money masters", "911 in plane sight" and "loose change".
    after you watch these movies, read, learn and know your constitution (all of it!) and then put the practice of the second amendment into practice.

    i hear a lot of people always asking "why/how..did all of this happen?", and it makes me sick!
    here's why and how. everybody is too busy investing ALL of their time and attention on "dancing with the stars", "american idol", "the sopranos", "sports", "celebrity gossip shows or tabloids (i mean, do you think that angelinna being the most talked about celeb in the media and her being a U.N. embassador is a coincidense?)", etc... devoting their lives to the idiot maker (tv).

    you really want to help your country?
    turn off the TV and go read something of importance.
    start with the constitution. NOW!!!
    you're online already.
    it's not like you have to drive somewhere to purchase a copy of it.
    it's free, and you can do right from that chair you're siting on.
    google "CONSTITUTION" now!

    Also read:
    Give Me Liberty"
    "The End of America : A Letter of Warning To A Young Patriot"
    both by Naomi Wolf

    "The Rise of the Fourth Reich" by Jim Marrs

    "The David Icke Guide to the Global Conspiracy (and how to end it)" by David Icke

    Also visit prisonplanet.com & infowars.com

    it's time to educate ourselves.

    when john f. kennedy said, "..."ask" what YOU can DO for your country", he meant for you to "find out/learn" what you can do for your country, to help America stay the great country that is it, if not better.

    we can not just put all the responsibility on one person, we all have to act.
    ron paul can only be our light. it takes us to see, learn and want things to get better.
    let ron paul serve as our inspiration of how to be, what knowledge to thirst for and what actions to take.

    but i guess some of us are all to lazy and brain dead from watching "survivor" t do anything.

    or will you prove me wrong?

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    • First - is this Jason Lee? Second, I agree with your sentiments and will review the materials you list which I have not already read. I started my journey with the founding fathers and the revolution before turning to economics and what is currently going on. It is a disgrace. I am kicking off a site republicratssuck.com to try and pool like minded individuals to educate others and creat an upswell against the direction we are headed. Join me?

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  8. Rhonda,
    Gold has not backed the dollar since Nixon took the US off the standard. See this http://www.youtube.com/watch?v=z6NfXk7Bvc8

    I have been contacting my Congressional reps asking them to talk to Ron Paul about his ideas. If you are not contacting your reps, what possibility of change can there be?

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    • Sam hit it on the head. You can't bitch if your not taking some action. I send emails to Vern Buchannon at least once a week. Funny, he never writes me back or tries to explain to me why he voted for the bailout.
      It seems interesting to me that inspite of the HUGE scam the central bankers are perpetraiting, and the HUGE lies they are telling to pull it off, the only people who are rallying in the streets are those offended by the same sex mairrage ban in Cali.
      Fractional banking has reached its end and our economy is collapsing. People are losing thier jobs and thier homes. Central bankers are giving themselves billions. In collusion with our coorupt administration they are giving companies they are mojority share holders in ( Morgan Stanley, Goldman Sachs, Bank of America ) billions of dollars. Money we as tax payers owe......WITH INTEREST. Its genious really. Genious and EVIL.

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    • Everyone should contact their reps great reminder!

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  9. http://www.john-f-kennedy.net/executiveorder11110.htm
    Just read this article: President John F. Kennedy, The Federal Reserve and Executive Order #11110, has anyone else read this,
    it's first time I have heard of it.

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  10. Too bad there isn't a requirement for those holding office to go over the Constitution and their oath on a regular basis. I think they should have to say the Pledge every day! Do you think that would help! Maybe they don't realize there are constituents who are relying on them to uphold that Constitution.

    I agree with Texmom! Too bad Ron Paul can't fire up Congress.
    There is so much going on that I've heard even a lot of congress isn't aware. Nobody I know believed there was a potential for a North American Union or a NAFTA super highway. You would think that would get a lot of press. It has probably had more press in Canada.

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  11. check out zeitgeitz the movie.

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    • that zeitgeist movie is half truth, half lies.. therefore it's called consipiracy. Here's a website that broke it down word by word checked the sources and provided all the referances. You might want to read this before you watch the zeitgeist.

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  12. Please, subtitulos en Español¡¡¡¡

    En España necesitamos que alguien nos cuente la verdad de las cosas también

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  13. I agree that apathy is going to kill this country if we can't fire people up, but I think people are at a loss as to what to do. I think Ron Paul has the ability to fire people up, but I think a lot of us feel somewhat helpless in how to further proceed. The media manipulates our elections, and if we don't feel represented....what can we do? I also think people need some basic education in knowing the constitution, so the majority of voters will be aware when unconstitutional things are being passed.

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    • Its up to us here. I am putting together a website that is not yet up called republicratssuck.com I believe that our founding fathers fears that partisanship would tear our country apart have come true. Doesn't it seem like all this stuff has to be intentional? After the election, which I refused to vote for McCain even though he may have been the slight lesser of two evils I did not know what to do. I don't know what I expect to come about from this, but I cannot do nothing. Join me?

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      • Scott,

        For the first time in my voting history, I voted third party. Since I couldn't vote for Ron Paul, I followed what he suggested.

        I've been calling it the Dem/Rep party, it's pretty much looking much the same these days, going for global government and forgetting we have a Constitution, just doing what they want.

        RonPaulforPresident2008.com has fabulous information. Everyone in the country should see that information.

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  14. More lies from an unconstitutional institution. Apathy is killing this country.

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  15. We've also heard they have to devalue the dollar to the peso so the North American Union can proceed with its own money, just part of the plan.

    And if things become bad enough I guess
    the citizens would happily accept a more global World Bank solution.

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  16. What ever happened to the gold that was supposed to be backing our money once upon a time. I heard it was "removed" from Fort Knox. I think a lot of people still believe that there is gold backing our money.

    Can you enlighten us?

    Thanks for info.

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  17. Ben Bernanke holds the majority of his assets in annuities, google it and you will see. The Federal Reserve owns lots of gold. The point here is the Federal Reserve system allows for the bank to purchase gold as the country debases the dollar. We lose they win. The public is in for a real shock, just as Thomas Jefferson warned about a centeral banking system. I talk about it everyday on my radio show in Philadelphia.
    The meltdown valuses of todays coins versus those minted prior to 1965 tell the story. 3 cents for the coin dollars of today and 7.91 dollars for the silver dollar of 1965 and earlier. The looting continues.

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  18. Does it really matter what anyone thinks regarding the actions of the banking cartel? It seems as though they do whatever they choose to do with the interests of the economy having no influence on their decisions. I would suggest that it is a case of i'm alright jack and knobsticks to everyone else.

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  19. Bernanke always dances around gold. Its obvious that he does not like Ron Paul because Bernanke knows he is telling the truth, but Bernanke cannot say I agree with Ron Paul because it would cause a major panic of people changing there dollars over to gold if he ever said the dollar is having issues, but I promise you Ben Bernanke owns plenty of personal gold. He would be a fool not too!

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  20. It's nice to know the world central banks organize their gold transactions in order to manipulate world gold prices.

    Ron Paul hit the nail on the head about why they are dealing in gold if the fiat currency model is in fact not broken.

    We'll see a world currency faster than people anticipate... 2015 at the latest.

    Most likely a North American currency will be a prelude in 2010 and then role over to the world currency when we unite with the Euro.

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    • I think the Amero is right around the corner. The Feds will never admit to anything they are doing. After all, should a thief tell you when they are comming to rob you? Absolutly not. That takes away from the effect of being a thief.

      Hopefully, if we do go to a new currency, the leadership of this country will use that as an excuse to circumvent to Federal Reserve. And the government itself will begin printing it's own money.

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    • Read "The False Profhet" by Ken Klien. You will become frightened by the current events.

      We are being robbed by our government and we continue to sit by and watch and say... Good Golly we're mad. when are we going to get mad enough to do something?

      If I give GM money, I want my car. JP Morgan has been pushing for the "New World Order". For 100 years. American's please get angry.

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