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Ron Paul to Fed, Ft. Knox: Show Me the Gold

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Congressman Ron Paul is in the news today doing what he does best: dropping firebombs on the Fed.

The Republican from Texas told Kitco News that he plans to introduce a bill next year that will allow for an audit of U.S. gold reserves. Paul reportedly said that, in his opinion, it’s a “possibility” that there in fact isn’t any yellow metal in Fort Knox or the New York Federal Reserve.

“If we ever get around to deciding we should use gold in relationship to our currency we ought to know how much is there,” the lawmaker said. “Our Federal Reserve admits to nothing and they should prove all the gold is there. There is a reason to be suspicious and even if you are not suspicious why wouldn’t you have an audit?”

Going after the Fed is nothing new of course for the Congressman. The hard-hitting libertarian is an outspoken critic of our central bankers, an enthusiasm that has fueled some unusual public exchanges with our Fed Chairman. In February, for instance, Paul suggested the Fed had been involved in the 1980s in making secret loans to Saddam Hussein, and that Fed money funded the Watergate break-in.

Bernanke replied that the allegations were "absolutely bizarre, and I have absolutely no knowledge of anything remotely like what you just described."

Regardless of how strange Bernanke thinks Paul’s ideas might seem - even this latest call for an audit of U.S. holdings of gold - he should stay focused on his Congressional nemesis: after all, Paul is nothing if not determined.
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