POLITICS Ron stands up for ordinary folks agains the Fed

[Guest guest]

http://www.youtube.com/watch?v=8pEiLHnjAiw & feature=related

RP: But how can you do this and pursue this, the policy that you have

without further weakening the dollar? There's a dollar crisis out

there and people's money is being stolen. People who have saved,

they're being robbed. If you have devaluation of the dollar at 10%,

people have been robbed at 10%. But how can you pursue this policy

without addressing the subject that someone is losing their wealth

because of a weaker dollar? And it's going to lead to higher interest

rates and a weaker economy.

Bernacke: If someone has their wealth in dollars and is going to buy

their consumer goods in dollars, the typical American, then the only

effect it has on their buying power is it makes imported goods more

expensive.

RP: But not if you're retired and elderly and you have CDs, and their

cost of living is going up no matter what your CPI says, their cost of

living is going up, and they're hurting, and that's why people in this

country are very upset.

Other Congressmen: [laughter]

Bernacke: [rubs nose, hides either nervousness or a smirk]

Other Congressman: Well we have a certain level of, uh, anxiety up

here, Mr. Chairman

Other Congressmen: [laughter]