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Saturday, July 16, 2011

Gold is Money Everything Else is Credit

Robert Ian : Gold is Money Everything Else is Credit , on July 13, 2011 Congressman Ron Paul questions Federal Reserve Chairman Ben Bernanke in a U.S. House Financial Services Committee Meeting shortly after reports surfaced that the Federal Reserve was preparing for a third round of quantitative easing.

here is a transcript of the Q&A between Dr Ron Paul and FED chairman Ben Bernanke about Gold being money or not being money :
Paul: “Do you think gold is money?”

Bernanke: “No. It’s a precious metal.”

Paul: “Even if it’s been money for 6,000 years? Somebody reversed that and eliminated that economic law?”

Bernanke: “Well, you know, it’s an asset. Would you say treasury bills are money? I don’t think they’re money either, but they’re a financial asset.”

Paul: “Why do central banks hold it (gold) if it’s not money?”

Bernanke: “Well, it’s a form of reserves.”

Paul: “Why don’t they hold diamonds?”

Bernanke: “Well, it’s tradition. Long-term tradition.”

Paul: “Some people still think it’s money.”

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