Ron Paul and Fed Chairman Agree to Discuss Competing Currencies

Transcript

Chairman: Dr. Paul?

Ron Paul: Thank you, Mr. Chairman. Mr. Bernanke, if you don’t mind, would you tell me whether or not you do your own shopping at the grocery store?

Ben Bernanke: Yes, I do.

Ron Paul: Okay, so you’re aware of the prices. You know, nobody believes this argument about the prices going up by about 2%. The old CPI says prices are going up at 9%, they believe this. The people are really hurting, the middle class are really hurting, because their inflation rate is very much higher than the government tries to tell them, and that’s why they lose trust in government. But this whole idea about prices and the debasement of currency, if you loan me $100 and in 2 years from now I gave you $90 back, you’d be pretty upset. But we pan bad money back, and it’s worth 10% or 15% or 20% less, and nobody seems to be able to do anything about it, and it’s very upsetting. But it’s theft, if I don’t give you your $100 back if you loan me a $100, I’m stealing $10 from you. So somebody is stealing wealth, and this is very upsetting.

But in January, in one of your press conferences, you sort of poked a little bit of fun at people to downplay the 2% inflation rate. But if you say it’s 2% and I say it’s 9%, let’s compromise for the sake of argument that it’s 5%. You said that it doesn’t hurt you unless you’re one of those people who stick their money in the mattress. But where are you going to put it, are you going to put it in a CD and not make any money at all? So this doesn’t make any sense, it doesn’t encourage savings and it just discourages people. But I do want to make a point about prices, because when prices go up, that to me, is not the inflation; it is one of the bad consequences of the inflation which comes from the increase in the money supply and that’s one of the bad affects. But you took over the Fed in 2006. I have a silver ounce here, and this ounce of silver back in 2006 would buy over [14] gallons of gasoline. Today, it will buy almost 11 gallons of gasoline; that’s preservation of value, and that’s what the market has always said should be money. Money comes into effect in a natural way, not in an edict, not by fiat or by governments declaring it is money. But why is it that the two of us can’t consider an option? You allow paper money, I think money should be honest, constitutional, (it’s still in the books), gold and silver legal tender. Why don’t we use it? But why don’t we allow currencies to run parallel, they do it around the world? One of my options, as much as I’d like to do something with the Fed, I say, “The Fed is going to self destruct eventually anyway when the money is gone”. But why wouldn’t we legalize competing currencies, why can’t people save and put this in the mattress and get 4, 5 times as much of the value in a few years? So the record of what you’ve done in the last 6 years is destroying the value of paper money, and, at the same time, real money is preserved. But, as for a competing currency, we already have a silver eager, it’s legal tender for a dollar, and some people say, “Well, it’s legal tender, it’s a dollar, it’s on the books”, and if they use it, they get into being trouble. The government comes and closes them down and they can get arrested for that. But what would be wrong with talking about parallel currencies, competing currencies? This is something that Hayek talked about, something that I think would be a compromise and we could work along those views.

Ben Bernanke: First of all, good to see you again, Congressman Paul. Just one word on the inflation, of course, those numbers constructed by the Bureau of Labor Statistics, not by the Fed, they’re independently constructed and I think they’re done in a very serious and thoughtful way. On alternative currencies, nobody prevents you from holding the silver of gold if you want to, it’s perfectly legal to do that. And it’s also perfectly fine to hold other currencies; Euros or Yen or whatever else. So, in that respect, you can do that, and I’d be happy to talk to you about …

Ron Paul: But, Mr. Chairman, that’s not money. I mean, when you pay taxes to buy a coin, or you have a capital gains tax. If you have to settle a lawsuit, it’s always settled in depreciating Federal Reserve notes, it’s never settled in the real contract. So that’s nobody near money when it’s illegal to use it. But to do it, you’d have to repeal the legal tender laws, you would have to legalize this, you’d have to get rid of the sales taxes, you’d have to get rid of capitals gains taxes. Even in Mexico they’re talking about this, they’re trying to have competing currencies, they’ve been wiped out too many times with inflation wiping out the middle class. They’re allowing people to start to save in a silver currency. So I hope we move along in that direction, because there shouldn’t be any overwhelming changes all of a sudden. There could be a transition and you could vote on it, maybe they’ll give up on a Federal Reserve note and vote for real money.

Ben Bernanke: I’d be very happy to talk to you about it.

Ron Paul: Thank you very much.

This is a rush transcript. If you notice any errors please report them using the “Help improve this post” link at the bottom of this post.

  • http://www.youtube.com/profile?user=Gravija1980 Gravija1980

    While Ron Paul clearly wins this argument against Bernanke, the solution is not a gold backed currency. Gold is fiat as well and it’s only REAL value is in industrial use. Besides, how can the USA go back to a gold backed dollar when Fort Knox was robbed of all the gold years ago by the banksters…

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  • http://www.youtube.com/profile?user=wodahsking wodahsking

    PWNED!

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  • http://www.youtube.com/profile?user=DanielSeriously DanielSeriously

    Ron Paul brings common sense to the world. That’s why everyone likes him.

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  • http://www.youtube.com/profile?user=bewtube bewtube

    Ron Paul 2012-2020…smart wise man he is. Keep up the great work RON! Ron Paul is the only guy id vote for.

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  • http://www.youtube.com/profile?user=Virtuoso80 Virtuoso80

    Ben Bernanke: “BLOW ME! Oh crap…did I just say that out loud!?”

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  • http://www.youtube.com/profile?user=TheUsername217 TheUsername217

    Bernanke should be assassinated

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  • http://www.youtube.com/profile?user=ju88ff ju88ff

    Do you ever shut up Ron Paul.

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  • http://www.youtube.com/profile?user=kjohnsen045 kjohnsen045

    Why are we even asking them?! Get RID of them!!

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  • http://www.youtube.com/profile?user=dakidd38 dakidd38

    Thank you Ron Paul!

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  • http://www.youtube.com/profile?user=marksp22 marksp22

    Ron Paul is such a genius he could deff run our country….

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    • Surfisher

      Ron Paul is the only one who wants to restore our Freedoms and Prosperity (and get us out of the business of war making).

      The rest are for even more ‘people control’ ; see what FOX aired in this show: “Illegal Everything” — a Must See!

      Shows how Americans are “breaking” the law daily, without knowing it, because of the hundreds of millions of rules and regulations. And how cops are using this as an excuse to arrest anybody for just about anything!

      From the Nation with the most Freedoms in the civilized world, we have now become the one with the least!

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  • http://www.youtube.com/profile?user=gamErSERVANT gamErSERVANT

    facebook(dot)com/randpaul16?sk=wall

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  • http://www.youtube.com/profile?user=ThickShadescom ThickShadescom

    pwned and owned.

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  • http://www.youtube.com/profile?user=zuluamuse zuluamuse

    ˇThank God for Ron Paul he makes soooo much sense!

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  • http://www.youtube.com/profile?user=Mezocosm Mezocosm

    Oh? God Bernanke is going to hear out Ron Paul? Well swell that gives me such a warm feeling

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  • http://www.youtube.com/profile?user=Youareanexperiment Youareanexperiment

    The only voice of reason and Common Sense left in Washington! Vote for Ron Paul Americaaa

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  • http://www.youtube.com/profile?user=aetas4500 aetas4500

    God bless Dr Paul !!!

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  • http://www.youtube.com/profile?user=bobdigipf bobdigipf

    FUCK THE FED!

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  • http://www.youtube.com/profile?user=999silverhk 999silverhk

    JPM just naked short silver while they are talking this subject!! WTF!!

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  • http://www.youtube.com/profile?user=wdcsucks1 wdcsucks1

    why do we still talk to these criminals instead of arresting them!!!

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  • http://www.youtube.com/profile?user=asteroidminer asteroidminer

    After this Bernanke got on the phone to his mates at JPMorgan etc to short silver.

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