classic exchange between Congressman Ron Paul and Fed Chairman Ben
a sense of history for central banking and monetary operations was
shocked when Bernanke, with a straight face, declared that gold
wasn't money. The silence that preceded his answer was deafening.
It’s almost as if Bernanke knew his goose was cooked as the whole
world watched. As Paul noted, such a statement disregards
thousands of years of historical
evidence demonstrating gold's use as money among man.
As if Bernanke's
painful admission that gold isn't money wasn't bad enough; he went
on to timidly suggest that central banks hold gold because of "tradition."
Tradition of what you may ask? Confiscating the means by which the
public protects itself from endless fiat printing? Or perhaps it's
just a shrewd effort to exert the state's dominance in society through
the forced use of paper bills containing pictures of past "leaders."
Whatever the case, Bernanke, grasping in the dark to defend the
system which is losing
credibility by the day, deflected with academic shrugging and
asserting that people hold gold to protect themselves against "really
bad outcomes." From a Fed chairman's point of view, these
"really bad outcomes" are never the threat of high inflation or
the collapse of an unsustainable fractional reserve banking system.
Such admittance would be blasphemous.
exchange between Paul and Bernanke set the economic blogosphere
on fire last July, it turns out not all central bankers agree with
the Fed chairman's assessment of gold. In lieu of the fiscal
train wreck that is Europe, world leaders at the recent G20 meeting
in Cannes, France were rumored
to be considering a tapping of the gold reserves held by German's
central bank, the Bundesbank, to fund the European Financial Stability
Facility. Like maggots to a dead carcass, never doubt the
state's ability to find a new source of wealth to dig into.
A Bundesbank spokeswoman responded, "we know this plan and we reject;"
essentially putting the brakes on such a blatant act of theft for
the time being.
were revealed from such a plan. First, world leaders will
go to great lengths to ensure the banks holding euro debt will be
bailed out and they aren't afraid to sell Germany down the river
to do it. Second, and even more revealing, was that such a
proposal shows that gold is money despite the crumbling fiat
system by which politicians make their deceitful living off of.
According to Goldcore,
central banks around the world have been slowly accumulating gold
Even with the
Bundesbank rejecting the proposal, euro finance ministers are on
track to further discuss the gold grab this week. So much
for sovereignty in the face of New World Order.
While Ben Bernanke
attempts to defend the fiat system he represents over an honest
currency, his central bankers-in-arms sing a different tune.
Who wouldn’t take advantage of the asset you make all the more attractive
through endless liquidity used to prop up a corrupt banking system
and finance ever increasing government spending? With the world's
engaging in a currency race to the bottom, gold will only become
more attractive as a currency while Bernanke becomes the Youtube
sensation he deserves to be.
E. Miller [send him
mail] holds a BS in public administration with a minor in business
from Shippensburg University, PA. He is a former staff columnist
to the Shippensburg Slate and current contributor to his
hometown newspaper, the Middletown Press and Journal. See