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Here is another take on the exchange from GATA:

"Our hero, U.S. Rep. Ron Paul, R-Texas, had an interesting exchange with Federal Reserve Chairman Alan Greenspan today before the House Financial Services Committee, wherein the most terrifying four-letter word in Washington was heard: G-O-L-D.

Paul cited a speech Greenspan gave in January to the American Numismatic Society in which Greenspan seemed to question whether the fiat monetary system would continue to work. In that speech, Greenspan had joked that, if the fiat system failed, the country might have to go back to using sea shells and oxen as money, and he promised that the Fed's discount window would maintain an adequate supply of those things.

Paul suggested that managing the Fed is like managing Enron, insofar as their accounting is similar. That is, Paul said, money is borrowed into being in the United States -- the government borrows money, issues instruments for that debt, and then those debt instruments are treated as assets on the books of everyone holding them.

In earlier remarks to the committee, Paul noted, Greenspan said Enron had operated by "capitalizing its reputation while holding few assets." Paul said this was just like the Fed itself.

Then the four-letter word came in. Gold, Paul said, is giving a hint of inflation despite the efforts of central banks to push the gold price back down.

Greenspan did not respond to Paul's remarks about gold, and since just moments earlier Greenspan HAD disputed remarks by Rep. Bernard Sanders, D-Vermont, about market concentration in certain industries, it's a fair assumption that Greenspan CHOSE not to deny that central banks are trying to suppress the gold price.

The Fed chairman told Paul that he "hoped" that there are "fundamental differences" between Enron's and the Fed's operations.

Fiat currency, Greenspan said, indeed has been mismanaged into inflation, but, he added, "We're learning how to manage fiat currency."

Of course with a little candor Greenspan might have added that managing fiat currency lately has been a matter of managing the gold price too.

Greenspan said he remained skeptical of fiat currency but recent evidence "is that it has succeeded."

Well, let's all stick around and see how much longer it succeeds.

Greenspan concluded his reply to Paul by saying that "I don't perceive" that the Fed is doing anything like Enron. The Fed, the chairman said, is being "transparent," but added, tellingly: "except where it inhibits the Fed's ability to function as a central bank."

Committee members are allotted only a few minutes at these hearings, and Paul could not follow up on Greenspan's reply. But Greenspan's conclusion seemed to acknowledge that he seems the basic functions of a central bank as requiring keeping the public ignorant about the most important stuff.

With luck that important stuff may be discussed if a hearing is ever held on Paul's legislation to require the Treasury Department, the Exchange Stabilization Fund, and the Fed to get the approval of Congress for any intervention in the gold market.

Some of our people are upset that CNBC's coverage of Greenspan's appearance before the House Financial Services Committee was interrupted during Paul's questioning as the network switched to a hearing on Enron. Whether or not this was the result of CNBC's hatred of gold, which is the enemy of all the imaginary investments CNBC has touted for years, you can see the Greenspan-Paul exchange for yourself over the Internet, courtesy of that ever-more-wonderful network, C-SPAN.