Professor Bernanke Rails Against Gold Standard
Submitted by emalvini on Tue, 03/20/2012 - 21:17Professor Bernanke Rails Against Gold Standard
Federal Reserve Chairman Ben Bernanke headed back to the classroom Tuesday, and defended the Fed against its most outspoken critic, Ron Paul.
In a lecture otherwise about Fed history and the Great Depression, Bernanke devoted four slides to discussing "problems of the gold standard."
For years, Congressman (and now presidential candidate) Ron Paul has argued to abolish the Fed and revert back to a system where U.S. dollars can be redeemed for gold.
The United States abolished the gold standard in 1933, and fully moved away from a fixed exchange rate in 1971. Bernanke defended that decision Tuesday, saying a gold standard creates an "awful big waste of resources."
"To have a gold standard, you have to go to South Africa or someplace and dig up tons of gold and move it to New York and put it in the basement of the Federal Reserve Bank of New York and that's a lot of effort and work," he said.
Read more:
http://economy.money.cnn.com/2012/03/20/professor-bernanke-r...
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This Makes Me Think
That the Fed. Reserve Bank of New York is starting to run out of gold. You know, because they've sold it all trying to depress the price?
Given Ben's accuracy as a contrarian indicator, I'd say this is a buy signal for gold. Go long.
What a DOPE!
To the Bernank: The reason there wouldn't be enough gold is because you've printed too many GD FRN's, you DOLT! That's the POINT!!!
You're cheating me and every other hard working stiff in this God-forsaken country out of the value of our money, and you're doing it QUICK, you GD THIEF!!!. STOP IT, or somebody will wake up and punch you in the NOSE!
A new Chevy sedan doesn't cost $25,000 today vs. $3,000 like it did when I was 16 because GM is a bunch of greedy pikers, it's because you've diluted the value of the FRNs needed to make that purchase. Now I need to either work my bag that much harder, cajole my boss into paying that many more FRN's on the hour, or both. It's not HIS fault or GM's, it's YOURS. Even a 2nd assistant bookkeeper like me can finger this out.
It's like baseball cards, Ben. The more Honus Wagner or Mickey Mantle cards in existence, the lower the value of each card. How tough can this be? Or were you too busy playing with your sister's Ken and Barbie dolls back in the day?
It is precisely because it
It is precisely because it does take a great deal of effort to mine gold that gold represents genuine value. Show me a currency that is easy to produce in arbitrary quantities and I will show you a currency that will soon be inflated to worthlessness by the politicians.
Hey Ben. Can you "loan" me a
Hey Ben. Can you "loan" me a few billion? Id like to help you stimulate the economy.
Why does Alex Jones insert a "submit to fear" subliminal message in his movies?
No, Ben, you got it all wrong.
"To have a gold standard, you have to go to South Africa or someplace and dig up tons of gold and move it to New York and put it in the basement of the Federal Reserve Bank of New York and that's a lot of effort and work," Bernanke said.
NO. I can promise you it won't go to the Federal Reserve in New York for two reasons:
(1) It will go back to Fort Knox, to replenish the supplies there that the Fed has squandered.
(2) You can't store gold in a soon to be vacant building for lease or for auction to the highest bidder.
End the FED!
~Chris
Norfolk, VA
~Chris
Norfolk, VA
Time to INVESTIGATE the investigators of 9/11. PROSECUTE the prosecutors. EXPOSE the cover-up.
There are few things in this life that make me happier
Than seeing old Ben squirm. He better get his résumé freshened up, because his place of employment isn't long for this world.
Tu ne cede malis sed contra audentior ito
In Other News...
Vampire rails against garlic.
Don't insult vampires. Garlic
Don't insult vampires. Garlic is more valuable than paper or a few key strokes in cyberspace.
Why does Alex Jones insert a "submit to fear" subliminal message in his movies?
George Selgin is a free
George Selgin is a free banking advocate. Not a gold bug, but his article debunking a previous anti-gold argument was very enlightening.
One quote I especially liked was in reference to growing economies and the idea that the supply of gold would not be able to keep up:
"Mr. Porter here overlooks another relevant episode in economic history. This episode is known as "the 19th century."
I have to wonder what he would say about Bernanke's arguments:
http://www.freebanking.org/2011/11/10/stupid-arguments-again...
The amount of gold
isn't so important. An ounce of gold is divisible into extremely tiny fractions. For example, gold could be priced by the microgram (there are roughly 30 million micrograms in an ounce of gold). People seem to think we'd have to walk around with a purse full of gold coins if we were on the gold standard. Well, no. We'd use checks and credit/debit cards and paper money the way we do now, except it would all be backed by gold. What ails this country most is a massive, collective failure of the imagination.
the options.
1. we could BOMB africa! take all their gold. that's the american way!
2. we could STEAL the gold from Americans! OH WAIT... 1933
3. the ol' printin' press, since we're too jealous to give up our monopoly on money.
my diy adventure blog: dickdoesit.blogpsot.com
Convincing people the naked emperor is finely dressed
I think Brnanke and the central banksters might actually be being forced to counter argue a gold standard because many are waking up to the ills of THE FED. Look, even if there were perfect, incorruptible humans running THE FED it would be a bad idea. But the people are startimg to sense that they are being cheated; they realize the Fed is simply the single best special interest lobbyin firm ever devised. Gold may have some flaws, but it has HONEST flaws, prefictable flaws. Better still its flaws affect everyone, not just the lumpen masses...the elite get no free ride.
The Doc's growing recognition, the ongoung ills in the evonomy, the rising inflation (check your juice and lemonade containers...mine are now 59 oz instead of 64!!) are all conspuring to make people wuestion the wisdom and utility of a central bank to everyone eho isnt a banker.
The elite yried to ignore and deride the gold standard. But now they are forced to attack it. But by attacking it they bring more attention to the issue. Economists may be swayed by Bernanke, but people not so brainwashed by years of official indoctrination will more easily see through the lies. At least, i hope so...
Elites (or so called ones, thereof) are like Fish
...
the head is first to start rotting.
My name's pronounced like "see real". Its root is "Lord".
"The demand of a great people is always at the scale of its most serious misfortunes." --De Gaulle
http://Laissez-Faire.Me/Liberty
Oh, and needless to say, but just in case...
I have never considered men like Ron Paul be part of the "elites".
Men like him are even above them elites.
These men make history of the Greater Good, like the founders. They do have human flaws, but they transcend those.
The elites, on the other hand (just my own theory) are doomed to get rotten eventually. That's mankind to me:
elites MAY be good to some extent or to some point in time.
Afterwards... Look where we are now.
It took 100+ years to those "elites".
My name's pronounced like "see real". Its root is "Lord".
"The demand of a great people is always at the scale of its most serious misfortunes." --De Gaulle
http://Laissez-Faire.Me/Liberty
The professor Hasn't Done His Homework.
http://www.bgs.ac.uk/mineralsuk/statistics/worldStatistics.html
. This is according to one of the most reliable sources of global gold production data, the British Geological Survey’s World Mineral Publication, that reported seven countries—#1. China, #2. USA, #3. Australia, #4. Russia, #5. South Africa, #6. Peru, and #7. Indonesia—produce more than 100,000 kilograms of gold annually, which equals 60% of world mine production.
beesting
Bernanke : "... and that is a lot of effort and work"
OP :
You almost got me dead choking...
Such a confession from a man who DESTROYS any hope in future, honest work!
Yes, Mr Bernanke, you obviously don't like work. You don't even care about what money represents and is used for trading work.
You are such a GREAT student of the THIEVES who were your predecessors... actually you are passing your masters, your name will stay in history books as the greatest champion of COUNTERFEIT of all times.
I am speechless on how dare you not RESIGN, each time, when you get to know your interviewer will be that man, named Ron Paul, who KNOWS what you are doing.
Yes, continue giving lectures on your pseudo ALIBI of the SERVILE ZEALOUS THIEF of your bureaucratic MASTER, that you are.
Continue lecturing.
Till you can.
My name's pronounced like "see real". Its root is "Lord".
"The demand of a great people is always at the scale of its most serious misfortunes." --De Gaulle
http://Laissez-Faire.Me/Liberty
Let's tear up those comments!
Let's tear up those comments! I just did it.
Lol...."I mean, if you want
Lol....
"I mean, if you want a sound currency, we gotta go to Africa and dig it up! Can you believe that? When we got a printing press in the basement!"
Eff that guy
It comes down to 2 simple things in my mind
1. There has not been smooth sailing since the creation of the fed, at all. In fact we are still dealing with the recession brought on by the housing crisis
2. The fed didn't see, from recent transcripts released recently, as well as there actions that largely brought on the recession, the actual recession coming. Ron Paul did and warned of it years beforehand. He warned of a rejection of the dollar....which is coming.
If Ron wasn't right and the fed actually did what it was supposed to do, somehow, then it may be a different story but it isn't.
I feel filthy just from
I feel filthy just from having read that drivel. The comment section is particularly disgusting. Evidently, people think money based on nothing is much more cosmopolitan... Fools.
The human race divides politically into those who want people to be controlled and those who have no such desire. - Heinlein