Rep. Ron Paul (R-Texas) took a break from his presidential bid to pursue one of his favorite pastimes — criticizing the Federal Reserve. Paul returned to Capitol Hill on Wednesday to question Fed Chairman Ben Bernanke, who was appearing before the House Financial Services Committee to deliver his semiannual testimony.
The longtime central bank critic and author of End the Fed opened with a lengthy critique of the central banking system, which he maintained is a wrongheaded experiment that has fueled bubbles and bursts in the financial system.
"Nobody's smart enough to have central economic planning," he said. "Our time has come for serious discussion on monetary reform."
"The Fed's going to self-destruct eventually anyways," Paul added later.
He went on to criticize the Fed for its monetary policy, reiterating his longstanding desire for currency backed by hard assets like silver and gold. He pressed Bernanke on why existing fiat currency couldn't coexist with hard currency like silver.
"You love paper money. I believe money should be honest," he said.
Paul went so far as to hold up a silver ounce to Bernanke, explaining that that tangible item had appreciated in value to the point that what bought four gallons of gas in 2006 now could buy 11 gallons.
A bemused Bernanke listened to Paul's lengthy speech, finally responding with, "First of all, good to see you again."
He went on to say he would be willing to discuss the idea of a parallel currency with Paul in the future.
Before leaving shortly after concluding his exchange with the Fed chairman, Paul asked Bernanke if he purchased his own groceries. Bernanke said he did.
Poster Comment:
I wish I could live to see the day where Bernanke would be FORCED to "discuss the idea of a parallel currency with Paul"!