After the Fed Chairman gave his opening testimony at the House Financial Services Committee on Wednesday, Feb. 29, Paul began by asking, “Mr. Bernanke, if you don’t mind, could you tell me whether or not you do your own shopping at the grocery store?”
In Paul’s view, the current inflation rate estimate is far too low.
“People on fixed incomes, they’re really hurting, the middle class 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.”
According to Paul, this kind of inflation is “theft”. “If I don’t give you your full hundred dollars back if you loaned me a hundred dollars, I’m stealing ten dollars from you. So somebody’s stealing wealth and this is very upsetting.”
In case Bernanke had forgotten what real money looked like, Paul took a moment to politely remind him.
“I have a silver ounce here. This ounce of silver back in 2006 would buy over 4 gallons of gasoline. Today, it will buy almost 11 gallons of gasoline. That’s preservation of value. 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, by governments declaring it is money,” said Paul.
“The record of what you’ve done in the past six years is destroy the value of paper money at the same time real money is preserved,” he added.
Watch how Paul continued to lay the case for silver and Bernanke’s response, below.