Is Gold Money? Well, Do You Trust Ben Shalom Bernanke? (Yes and NO)

By admin / October 03, 2013 / / Article Link

The metals have not gone nuts because of the extreme intervention by the Fed and the BOE and probably the BOJ. The intervention now is the most extreme that it's been in 13 years. But the end is near. 90-95% of the American public - by design - will never have the chance to buy gold or silver - it will move higher in price too quickly and retail investing patterns suggest they will refuse to chase the price. And given that 76% of the public lives from paycheck to paycheck they don't have money to buy gold/silver anyway - that's my prediction.

My comment above was in response to a discussion I was having with a colleague about the fact that most people in this country are completely clueless about what is really happening in this country in terms of the indisputable fact the U.S. is in a state of political and economic collapse. The extreme corruption and massive ongoing theft of wealth by corporate America - in collusion with the Federal Government - is symptomatic of this collapse. Unfortunately, Karl Marx predicted this about America back in the mid-1870's - a fact that I hate yo acknowledge because I despise socialism/communism.

So I thought it would be interesting to present the differing view on what gold is and what it represents between non-U.S. Central bank officials and our wonderful B.S. Bernanke. The following is an excerpt from the keynote speech given by the Director General of Italy's Central Bank to the audience at a London Bullion Marketing Association conference recently held in Italy (the Bank of Italy has the 4th largest gold reserve in the world - that is, if you assume the U.S. really has possession and legal claim to the gold it reports as owning):

During Banca d'Italia's keynote address Salvatore Rossi the director general told delegates how gold plays a key role in the central bank reserves:"Not only does it have the vital characteristic of allowing diversification, in particular when financial markets are highly integrated, in addition it is unique among assets in that it is not issued by any government or central bank, so its value cannot be influenced by political decisions or by the solvency of any institution," he said.

"These features, coupled with historic ... and psychological reasons, stand in favour of gold's importance as a component of central bank reserves," he said. "Gold underpins the independence of central banks in their ability to (act) as the ultimate bearer of domestic financial stability."

Now compare that statement to the remarks by BS Bernanke a couple years ago when he was being questioned by then Congressman Ron Paul while under oath - I've transcribed the salient section:

Ron Paul: Do you think gold is money?Bernanke: NoRP: Even if it has been money for 6 thousand years, somebody reversed that and eliminated that economic law?Bernanke: (pause) Well, it's an assetRP: Why do Central Banks hold it?Bernanke: Well, it's tradition

I don't know about anyone else, but I think it's quite fitting that the first two initials of Bernanke's full name are "B" and "S." I can't believe nobody has flagged that in 7 years of his Fed Chairmanship - because, if anything, Bernanke is certainly full of BullShit.