Wednesday, July 13, 2011

Bernanke Fights Ron Paul In Congress, Gold Isn’t Money

Congressman Ron Paul needs to remain on the House Financial Service Committee. His presidential ambition would deter going after the Federal Reserve. During the meeting between the Financial Service Committee and Fed Chairman Ben Bernanke, the Fed Chairman was very uncomfortable debating with Ron Paul. The Congressman cornered the Fed Chairman with very damning statements. Ron Paul needs to press the Federal Reserves. It is important to keep the Fed under check because their actions are causing the chaos in America.

(Forbes) 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. When asked whether gold is money, Bernanke flatly responded “No.”

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.

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.