Ron Paul and Fed Chairman Agree to Discuss Competing Currencies


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.



  • He, who shall not be named, has a silver ounce and shows it to the people, he must be a terrorist. 🙂

  • Ron pulls out the silver coin…oh my god, that’s total al-Qaeda right there

  • Great men are used to recognize another great man, Ron Paul is that big man, n so is Bob Chapman. Gold, silver, paper money, the point is: give a tyrant control or monopoly of what is accepted as money and what you get is slavery. The Money Masters documentary is quite clear! But sound money has to be backed just to make sure any mad dog will start a WAR to get back the control of the currency in his/her hands. Ron Paul, Bob Chapman, great men, they can kill them but I never forget about them.

  • funny how this video gos to 58 sec what a block out you tube fails as company have there hold over it and we cannot really say what we think so there for we are not really free this is not the world i wanted to leave in

  • “I’d be very happy to talk to you about it”.

    Why didn’t you talk about it right there and then when we were listening. Rather than behind closed doors in a private meeting. What a joke..

  • brotherjohnf says that Ron Paul just called him a liar (inflation and unemployment rates) and next a thief (inflation robs savers and lenders) and then he holds up the weapon (silver) that the people can use to fight him. He called Bernanke a vampire (maybe really werewolf?) and said that Ron Paul was showing him the silver bullet that he would use to kill him. Ron Paul’s got balls, man.

  • next they well put stuff in my foods to kill us all off wait is that not what they are doing now with GM Seeds

  • A very easy read called The Banks Vs The Constitution by Ron Paul: harvard-jlpp(dot)com/33-2/465.pdf

  • badass!

  • I would love to be walking down an isle in the grocery store and find Ben Bernanke coming the opposite way. All I can say is that it would get ugly.

  • Ron Paul, About the only person in government with a brain and who uses it for the good of Americans. Meanwhile most Americans like to think of themselves as “independent thinkers” but they mindlessly follow the lead of the Mainstream Propaganda Press which marginalizes and tries to diminish those like Ron Paul who actually tell the truth! This country is screwed and economic disaster will be the ONLY option as we are led by Bankers and their Puppets in government.

  • This guy is eating the money of whole world – Bernanke. Dr. Paul has exposed this criminal.

  • RP has done him up like a kipper

  • I don’t buy your feigned attempt at charming friendliness you deceitful bastard. Wipe that smile off your face and admit that everything the FED has done has been a disaster.

  • I’m actually starting to doubt if it would be a good thing if Ron Paul were elected.

    America’s collapse is pretty much guarenteed at this point, and if it happens under Paul’s leadership, people will point and say “See? Libertarianism doesn’t work!” It’s like making Paul the captain of the Titanic five seconds before it’s about to hit the iceberg.

    I think the best course of action might be to just let America completely collapse, and rebuild a new, Libertarian nation on top of the ashes.

  • Loved you book Mr Paul, it was a great read. I liked the stories about you and your brothers.

  • 0:08 LIE!
    3:52 LIE!
    5:21 LIE!
    3 Strikes YER OUT!!!!

  • This guy is evil incarnate. Why isn’t he arrested????

  • sigh we watched this in my economics class and everyone was like huhhhh?? what??