Ron Paul Slams Bernanke at Hearing

Paul attacks Bernanke's record, says Fed will "self-destruct, eventually."
3:00 | 02/29/12

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Transcript for Ron Paul Slams Bernanke at Hearing
I'm glad to see my friend. President poll back from the campaign trail. This seems to me like deja Vu all over again mr. Bernanke if you don't mind which determine whether or not you do your own shopping at the grocery store. Yes it is OK -- you're aware of the prices. The you know this argument it's prices going up about 2% nobody believes it. You don't -- CPI since prices going up nine -- they believe this. If people on fixed -- there really hurting the middle class -- really hurting. Because there inflation rate is very much higher. Then the government tries at tellem if you -- me a hundred dollars in two years from now -- -- ninety act you'd be pretty upset. But -- hand back that money back at its worst -- fifteen or -- of 20% -- And it and nobody seems to be able to do anything about it's very upsetting. But it's theft -- -- don't give your to your 400 dollars back below 300 dollars. Somebody I'm stealing ten dollars from you so somebody stealing wealth and this is very upsetting. But you know. Last two in January at -- -- your press conference -- she said that you sort of poked a little bit of fun at people. To Don played 2% inflation rate if you say it's too and I say it's not -- compromise for the sake of argument is 5%. Dad. You said it if you if it doesn't hurt you unless you're one of those. People who stick in my hit in the mattress that. That -- you gonna put it you don't have. Put it in a CD and not make any money at all. So this this Stetson this doesn't make any sense it doesn't encourage savings in -- and it discourages people. But if you want to make a point about prices because prices go up. That to me is not the inflation is one of the bad consequences. Of the inflation which comes from the increase in the money supply and as one of the bad effects. But you know you -- over the Fayette Ian in 2006. I've a silver ounce here. And this this -- of silver back in 2006. -- buying. Over Ford and gallons of gasoline. Today today it'll -- Almost eleven gallons of gasoline. That's preservation of value and that's what that's what the market has always see Ed should be money my money comes into effect in -- natural way not in -- edict not by fiat by governments declaring. He it is it is money. But. Why. Why is it. That we can't consider. You know the two of us -- an option. You love Paper money I think money should be honest constitutional still on the books gold and silver legal tender why don't we use it. But why -- we allow currencies to. Run parallel they do around the world. Not what my options you know as much is I would like to do something with that they had I say -- going to self destructive actually anyway when the money. When the -- gone. But why -- why wouldn't we legalize. Competing currencies. Why -- couldn't people saved put this in a mattress and get 45 times much of the value -- a few years. So the record. Of of of what you've done the last six years has destroyed value of real money. For -- could see you again -- 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 I think they're done in a very serious and thoughtful way. On alternative currencies. And nobody prevents you from. Holding -- -- gold if you want to it's perfectly legal to do that. And Euro also happy. -- also perfectly fine to. Hold other currencies say euros or yen or whatever -- -- so in that respect you can do that and cannot be happy to talk to you about it but. Mr. chairman that's not money. I mean when you pay taxes to -- -- coin we have capital gains tax a win and it's not if you have to settle a lawsuit is always settled in. Depreciating Federal Reserve notes it's never settled in in the real contract so that's nothing -- money. Oh win when it's illegal to use it. But to do it you'd have to repeal the legal tender -- you would have to legalize issued -- -- -- -- in this sales taxes he would have to get rid of the capital gains taxes. People 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 and wipe 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 he shouldn't be any. You know overwhelming changes all of a sudden that there could be a transition -- could vote on it. Maybe they'll give up on the Federal Reserve and vote for real money I'd be very happy to talk to you -- thank you very much.

This transcript has been automatically generated and may not be 100% accurate.

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