Federal Reserve Chairman Ben Bernanke appeared before the Congressional Joint Economic Committee on November 8, but had to face criticism from Republican presidential candidate and Texas congressman Ron Paul.

Paul made accusations the Federal Reserve was stealing people’s money.

“There is a dollar crisis out and people’s money being stolen,” Paul said. “People who have saved, they’re being robbed. I mean, if you have a devaluation of the dollar at 10 percent, people have been robbed of 10 percent.”

Federal Reserve Chairman Ben Bernanke attempted to dispel the notion people were being “robbed” of their money by explaining the relativity of the dollar in a local economy.

“If somebody has their wealth in dollars and they’re going to buy consumer goods in dollars, then as a typical American … then the decline in the dollar – the only effect it has on their buying power is that it makes imported goods more expensive,” Bernanke replied.

(Jeff Poor
Business & Media Institute
Friday November 9, 2007)

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