drrks, please, share with me is my concern unfunned? >> i think the fed balance sheet exhibits the source of the bubbles that man in the economy. when we see the feds balance sheet or they buy mortgage backed securities from the bank and so on. generate reserves then it creates the possibility of the bans just creating credit on the basis of these reserves and channels this credit into particular lines of activity where the bubbles arise. so this is the very process by which the asset price bubbles are generated in the economy. we caan uls a tell exactly what lines they'll be generated in just by looking at the feds balance sheet because the banks -- >> dr. riff kin, you will not remember, but many years ago i ran into you walking down the street and you were very, very kind to me. you spent literally ten, 15 minutes just talking to me on the street about some other issues. i've always been appreciative of your time. >> thank you. glad you have that memory. i think asset bubbles are a real problem for the fed. but not because of the bal

. >> drrk. thank you. the question is, would we be at a disadvantage if we had no central bank and other major economic powers had central banks? >> i think we would be. i think we'd lose our preeminence as a great -- >> would the currency supremacy, the dollar is a fairly well accepted currency around the world. would it have an impact on the dollar. >> yes, i think it would. >> the next person, please. >> it clearly would have an impact. it would make the dollar, the u.s. treasury bonds much riskier. >> mr. taylor. >> i don't recommend abollishing the fed. i recommend reforming the fed. >> would we be at a disadvantage if we had no central bank and other countries did? >> it depends how such a reform would be implemented. right now people are fleeing from the dollar and heading towards hard assets like precious metals. >> sir. >> the dollar was backed by gold i don't see how -- >> you would back the dollar with gold. >> yes, sir. >> thank you, mr. chairman. >> thank you. i now recognize the gentle lady f