Ron Paul Attacks Bernanke in Congressional Testimony

Following Bernanke's testimony on Capitol Hill, the Chairman of the Federal Reserve fielded questions from members of Congress. Perhaps most interesting was Bernanke's exchange with Congressman Ron Paul. Paul has long been a critic of the Fed and of central banking in general. In fact, Paul--as a current Presidential candidate--makes it one of his key issues in his ongoing campaign. Last summer, Paul generated a decent amount of media buzz when he asked Bernanke point blank if he believed whether or not gold was money. Today, Paul began his questioning by asking Bernanke if he did his own grocery shopping. When Bernanke stated that he does, Paul used the example of rising food prices to criticize the Fed's measure of inflation. "You say inflation is about 2%, I say 9%, let's just call it 5%," stated Paul. "That inflation is taking money away from the people." In somewhat theatrical fashion, Paul then literally pulled out an ounce of silver, arguing that gold and silver are "honest money" and that the Fed is likely to self-destruct as an institution in the future. Paul called for a competing currency, stating that the laws should be changed so as to allow precious metals to settle contract disputes and other legal obligations.