Wednesday, February 29, 2012

Ron Paul Holds Bernanke Accountable for Inflation/Dollar Devaluation

Here's Ron Paul today at Ben Bernanke's appearance before the House Financial subcommittee reminding Bernanke that the dollar has lost 99% of its value since 1913. At one point Paul pulls out a silver eagle, an ounce silver coin with a nominal face value of a dollar as legal tender, and explains that in 2006 when Bernanke took office an ounce of silver purchased 4 gallons of gas. Today, 6 years later, it would purchase 11. That, he said, is what 'real money is supposed to do,' noting the distinction between money created by 'fiat,' or government edict, and money that has its own intrinsic value.

We're three, going on four, generations removed from the 1913 agreement that started the Federal Reserve. People believe loss of value through inflation is systemic and necessary, but they have no idea WHY they believe it. People don't understand it isn't 'required.' People don't understand it doesn't HAVE to happen They expect it and plan their entire lives around it. It's the Weimar Republic effect in slow motion.

That is why Paul expends so much energy talking about devaluation and the Federal Reserve. He's trying to say, "Hey, you dopes. This national central bank is stealing your money from you and calling it a natural monetary phenomenon."

I agree that it starts being brain-hurty when Paul attempts to explain how the Federal Reserve is responsible for inflation, and how 'real' money works, but he has to do it. Every. Single. Time. Else most folks just don't get it. Sad but true.

Note: the term 'brain-hurty' is copyright protected.

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