House Budget Committee hearing
Ranking Republican Paul Ryan and Federal Reserve Chairman Ben Bernanke
NY Sun Editorial:
"Ryan noted that on Tuesday 'gold hit an all-time high,' or, as we like to put it, the value of the dollar fell to an all-time low. Mr. Ryan suggested that most people would view the development 'as a vote of no confidence against fiat currencies.' What he asked the chairman was 'what does that price signal tell you and what is your view of the long-term repercussions with respect to weak currency policies?' He said he supposed one could argue that we don't have a weak dollar because everyone else is weaker, but asked about the implications for a the 'strength and stability of our currency.' The chairman's answer strikes us as a classic. One doesn't go into gold because, as the be-puzzled Mr. Bernanke seems to suggest, one lacks confidence in, say, "other investments," soybeans, say, or iron ore. One goes into gold because one lacks confidence in the fiat currencies."