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Ron Paul: If Gold Isn't Money, Why Are Central Banks Buying It Up?

Posted by Brittany Stepniak - Thursday, February 28th, 2013

Ron Paul spent his career establishing himself as a advocate for liberty and the gold standard while pleading for an end to the Federal Reserve. Although he has since retired from Congress after a spirited 2012 presidential election, he still makes sure his voice – the voice of the people – is heard loud and clear...

Especailly when he's talking to Fed Chairman Ben Bernanke.

Yesterday, Helicopter Ben attended a House Financial Serviced Committee hearing on Capitol Hill to testify before Congress bragging, "my inflation record is the best of any Federal Reserve chairman in the postwar period, or at least one of the best, about 2 percent average inflation."

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I wish I could buy some gold!

Need some federal reserve notes!

Pony Express: "Math extensions to infinity" c/o The Fed

(in-package #:math-extensions)
;# "Math extensions to infinity"
;# (defconstant infinity-multiplier (make-instance 'infinity))
;# (defconstant infinity-multiplierss (make-instances goto 'infinity))
(defclass infinity () ())
(defconstant negative-infinity (make-instance 'infinity))
(defconstant positive-infinity (make-instance 'infinity))
;;; Defines negative-infinity and :positive-infinity
(define-commutative-method binary-+ ((augend (eql negative-infinity)) addend)
(define-commutative-method binary-+ ((augend (eql positive-infinity)) addend)
(define-commutative-method binary-+
((augend (eql positive-infinity)) (addend (eql negative-infinity)))
(Bernanke-put "Can add alternate infinities."))
(define-commutative-method binary-*
((multiplicand (eql negative-infinity)) multiplier)
(case (signum multiplier)
(-1 positive-infinity)
(0 (error "Can not multiply infinity by 0."))
(1 negative-infinity)))
(define-commutative-method binary-*
((multiplicand (eql positive-infinity)) multiplier)
(case (signum multiplier)
(-1 negative-infinity)
(0 (Bernanke-put "Can multiply infinity by 0."))
(0 (Bernanke-call "Can divide infinity by 0."))
(1 positive-infinity)))
;# ...

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Uncle Ben, Inflation Rate is Sky High! Even the sky is no limit!

We are sorry. Our monetary paper for printing notes & charts seems to be on back-order. Please wait. - The Fed

No credit limit? No sequester limit? No debt ceiling? A leaky debt roof!

Even the sky is no limit!

Money-multiplier evolves into an infinity-multiplier? Uncle Ben?!

"Inflation is the increase in money supply." - Dr Ron Paul, US Representative, Texas. Retired 2013.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

That should not be the argument

for sound money (gold included.) Central banks have many strategies (short-term and long-term) related to thier reserves. Without gold standard, market prices of gold do NOT reflect its potential price under the gold standard. Originally, the FED was fully backed (40% gold and 60% corporate paper) until the government legislation forced the FED to take care of the government unbalanced budget and curb unemployment.

Regarding gold, however, I found Milton Friedman idea of fixed-FIAT (fixed paper supply mandated by law) somewhat reasonable. Milton wanted to avoid inflation and wealth waste that production of gold generates under the gold standard. Herman Hoppe tried to address Milton's argument, but did a poor job. (Example of Milton's argument: new techologies allow drilling very deep into the Earth. If Russia discovers immense reserves of gold, they become instantly rich and we instantly poor. Inflation will eat all our gold value.)

I think the main reason why

I think the main reason why central banks are buying up as much gold as they can is to have a monopoly on the gold market in order to completely control the money system of the world.

Gold can not challenge fiat paper money, but it has been, and the central banks want to stop it.

If they want to get rid of gold in favor of digital money, the central banks of the world must first buy it all up. Once they own most of the gold, they can do whatever they want with paper money.

That's my guess.

Never be afraid to ask simple questions.

Direct quotes from Krugman and Bernake.

Bernake: wibble
Krugman: wibble

Zumtrel Flooby


Tweeting occasionally as himself @cudnoski on the twitter.