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Bernanke was like a deer in the headlights when asked if gold was money. Loved it!

Thanks for the post.
I was watching this on Bloomberg this morning. He sure did seem fidgety in that chair when congressman Paul was asking him those questions.

Gold is not money! HA! Just goes to show you that he is an idiot and he has no clue what to do now.

He looked pretty uncomfortable when Ron Paul stated to him that with all the extra money they printed up on QE1 and 2, they could of given every single person in this country $17,000, I think he phrased it in the question of "Would that money be better spent by a consumer?" or something to that effect.

Thanks Mr. Paul.
 

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I was watching this on Bloomberg this morning. He sure did seem fidgety in that chair when congressman Paul was asking him those questions.

Gold is not money! HA! Just goes to show you that he is an idiot and he has no clue what to do now.

He looked pretty uncomfortable when Ron Paul stated to him that with all the extra money they printed up on QE1 and 2, they could of given every single person in this country $17,000, I think he phrased it in the question of "Would that money be better spent by a consumer?" or something to that effect.

Thanks Mr. Paul.
I think it would have been a lot better for us in terms of jobs. But longer term, it wouldn't have done anything. We would be back at the trough a year later, just like Greece.
 

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The thing is.. it didn't create any jobs. It was a huge waste of money. Besides, the banks have a lot of QE money in their vaults and due to their fractional lending standards, those trillions will hit double and triple digits in the trillions once they start the multiplier effect.
 

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Article One of the United States Constitution:thumb:

Article 1 Section 10.1 forbids the States from making anything but gold or silver a legal tender.:D:

Section Ten sets limits on states, reserving certain powers exclusively to the Congress. States are prohibited from coining money or making anything other than gold or silver coin legal tender for payment of debts and are prohibited from entering into treaties or alliances, although compacts with other states are allowed with the permission of Congress.

http://en.wikipedia.org/wiki/Article_One_of_the_United_States_Constitution

Bernanke is a fool:confused:
 

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I kind of think he's right, gold is not money, money has no real value, gold has at least some industrial uses but it is only a commodity, you can't eat or drink the stuff, you can’t burn the stuff, there aren’t many tools I can think of to make with it. I know I'll get slammed for this but, say for instance we sold our reserve now or when it doubles in price, it wouldn't even come close to covering our debt. If we hold on to it till after TSHTF who's going to be able buy it from us? China? Don’t think so. Use it to up our foreign military so we can take commodities when we need to, we do it now, I’ll care even less that we do it, if my kids might go hungry. We'll need food, who produces more food than us? We need to stop giving it away. If a third world country wants our wheat, how about trading for it? Or earning it? They could lease their land for it, we‘ll make better use of it anyway? We need to bring back the manufacturing jobs. No B.S. stuff like video games and iphones, useful things, things that we'll need post-SHTF, how about affordable solar panels, wind generation systems, water collection/filtration systems. Instead of worrying about gold and baseball players, plant fruit tree's and bushes along the highways, or instead of that green grass stuff they put out to cover bare spots, couldn't it be an indigenous strain of wheat, I don’t care that it might not be the tastiest, but that it is hardy, maybe soybeans or sunflowers will work, whatever as long as it keeps Americans from starving. How about keeping our water clean for drinking, by keeping big business from screwing up rivers lakes and the ocean, and if they do screw it up, pay for it, you break it you buy, it except you can’t keep it. If you cant afford the clean up, your company belongs to the US government. I can already hear the trolls "I'll keep my gold when you come looking for bla bla bla I’ll shoot you" Whatever. All I’m saying is Diversify! If and when TSHTF I'm going to have a surplus of many useful thing for trade, water/filtration, food, spices, guns/ammo, knives, nails, jars, alcohol from my still, shovels, propane, don't get me wrong I have gold and silver but they were bought long ago and are buried and are almost forgotten, they are only a part of everything I have prepped for if and when TSHTF.
 

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I kind of think he's right, gold is not money, money has no real value, gold has at least some industrial uses but it is only a commodity, you can't eat or drink the stuff, you can’t burn the stuff, there aren’t many tools I can think of to make with it. I know I'll get slammed for this but, say for instance we sold our reserve now or when it doubles in price, it wouldn't even come close to covering our debt. If we hold on to it till after TSHTF who's going to be able buy it from us? China? Don’t think so. Use it to up our foreign military so we can take commodities when we need to, we do it now, I’ll care even less that we do it, if my kids might go hungry. We'll need food, who produces more food than us? We need to stop giving it away. If a third world country wants our wheat, how about trading for it? Or earning it? They could lease their land for it, we‘ll make better use of it anyway? We need to bring back the manufacturing jobs. No B.S. stuff like video games and iphones, useful things, things that we'll need post-SHTF, how about affordable solar panels, wind generation systems, water collection/filtration systems. Instead of worrying about gold and baseball players, plant fruit tree's and bushes along the highways, or instead of that green grass stuff they put out to cover bare spots, couldn't it be an indigenous strain of wheat, I don’t care that it might not be the tastiest, but that it is hardy, maybe soybeans or sunflowers will work, whatever as long as it keeps Americans from starving. How about keeping our water clean for drinking, by keeping big business from screwing up rivers lakes and the ocean, and if they do screw it up, pay for it, you break it you buy, it except you can’t keep it. If you cant afford the clean up, your company belongs to the US government. I can already hear the trolls "I'll keep my gold when you come looking for bla bla bla I’ll shoot you" Whatever. All I’m saying is Diversify! If and when TSHTF I'm going to have a surplus of many useful thing for trade, water/filtration, food, spices, guns/ammo, knives, nails, jars, alcohol from my still, shovels, propane, don't get me wrong I have gold and silver but they were bought long ago and are buried and are almost forgotten, they are only a part of everything I have prepped for if and when TSHTF.
If somebody reads that "paragraph" please summarize.
 

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I kind of think he's right, gold is not money, money has no real value, gold has at least some industrial uses but it is only a commodity, you can't eat or drink the stuff, you can’t burn the stuff, there aren’t many tools I can think of to make with it. I know I'll get slammed for this but, say for instance we sold our reserve now or when it doubles in price, it wouldn't even come close to covering our debt. If we hold on to it till after TSHTF who's going to be able buy it from us? China? Don’t think so. Use it to up our foreign military so we can take commodities when we need to, we do it now, I’ll care even less that we do it, if my kids might go hungry. We'll need food, who produces more food than us? We need to stop giving it away. If a third world country wants our wheat, how about trading for it? Or earning it? They could lease their land for it, we‘ll make better use of it anyway? We need to bring back the manufacturing jobs. No B.S. stuff like video games and iphones, useful things, things that we'll need post-SHTF, how about affordable solar panels, wind generation systems, water collection/filtration systems. Instead of worrying about gold and baseball players, plant fruit tree's and bushes along the highways, or instead of that green grass stuff they put out to cover bare spots, couldn't it be an indigenous strain of wheat, I don’t care that it might not be the tastiest, but that it is hardy, maybe soybeans or sunflowers will work, whatever as long as it keeps Americans from starving. How about keeping our water clean for drinking, by keeping big business from screwing up rivers lakes and the ocean, and if they do screw it up, pay for it, you break it you buy, it except you can’t keep it. If you cant afford the clean up, your company belongs to the US government. I can already hear the trolls "I'll keep my gold when you come looking for bla bla bla I’ll shoot you" Whatever. All I’m saying is Diversify! If and when TSHTF I'm going to have a surplus of many useful thing for trade, water/filtration, food, spices, guns/ammo, knives, nails, jars, alcohol from my still, shovels, propane, don't get me wrong I have gold and silver but they were bought long ago and are buried and are almost forgotten, they are only a part of everything I have prepped for if and when TSHTF.
If it is not money, why do we have it parked in Fort Knox with orders to shoot anyone trying to take it? I mean, it has no use right? Why do Banks hold it?

It's money, Bernanke is just worried folks will realize his fiat currency is worthless and folks will want to go back to a gold standard.
 

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Definition: money

Part of Speech Definition
Noun 1. The most common medium of exchange; functions as legal tender; "we tried to collect the money he owed us".[Wordnet]
2. Wealth reckoned in terms of money; "all his money is in real estate".[Wordnet]
3. The official currency issued by a government or national bank; "he changed his money into francs".[Wordnet]
4. A piece of metal, as gold, silver, copper, etc., coined, or stamped, and issued by the sovereign authority as a medium of exchange in financial transactions between citizens and with government; also, any number of such pieces; coin.[Websters]
5. Any written or stamped promise, certificate, or order, as a government note, a bank note, a certificate of deposit, etc., which is payable in standard coined money and is lawfully current in lieu of it; in a comprehensive sense, any currency usually and lawfully employed in buying and selling.[Websters]
6. In general, wealth; property; as, he has much money in land, or in stocks; to make, or lose, money.[Websters].

a lot of people here will tell you that the U.S. Greenback is worthless paper, then if paper = money, and gold = money, gold = worthless. If you accept monopoly money for services it will have value. like bitcoins they are a virtual money with no phisical form but people trade them for money, gold and services, and just look at how thats working out. if thats a form of money then so is gold or even baseball cards or comic books.
 

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Definition: money

Part of Speech Definition
Noun 1. The most common medium of exchange; functions as legal tender; "we tried to collect the money he owed us".[Wordnet]
2. Wealth reckoned in terms of money; "all his money is in real estate".[Wordnet]
3. The official currency issued by a government or national bank; "he changed his money into francs".[Wordnet]
4. A piece of metal, as gold, silver, copper, etc., coined, or stamped, and issued by the sovereign authority as a medium of exchange in financial transactions between citizens and with government; also, any number of such pieces; coin.[Websters]
5. Any written or stamped promise, certificate, or order, as a government note, a bank note, a certificate of deposit, etc., which is payable in standard coined money and is lawfully current in lieu of it; in a comprehensive sense, any currency usually and lawfully employed in buying and selling.[Websters]
6. In general, wealth; property; as, he has much money in land, or in stocks; to make, or lose, money.[Websters].

a lot of people here will tell you that the U.S. Greenback is worthless paper, then if paper = money, and gold = money, gold = worthless. If you accept monopoly money for services it will have value. like bitcoins they are a virtual money with no phisical form but people trade them for money, gold and services, and just look at how thats working out. if thats a form of money then so is gold or even baseball cards or comic books.
In 1913 gold sold for $18.92 per ounce. Now it's over $1,580. What's that say about your 'money'?

It now takes $1 to buy what $0.02 bought in 1913. All fiat currencies return to their true value, zero. The US dollar has about 2 years to go. It's going to be interesting for sure. The real problem began when the dollar was unpegged from gold.

Gold and silver as money go back to the beginning of civilization. No paper currency has lasted much more than a human lifetime. If you use the search function you will find a video link called "Bread for gold in Zimbabwe" or something like that. It's been posted so many times it should be a sticky.

Also, I can take an ounce of gold anywhere in the world and will be accepted as money. It knows no borders, religion or culture.
 

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What do you mean "your money"? you must have missed my earlier post. I don't back money in any form, I keep It, I have it, just like gold and silver, but I don’t believe in it. I think it is a store of value that follows rules, it seems that the rules that are ripe for change. If you’re all stocked and ready to go when TSHTF that’s great, buy gold and silver, but putting all of your eggs in one basket is a bad idea in anything. The "Bread for gold in Zimbabwe" is exactly what I'm talking about, how much bread do you think can you make for the $1,580 a toz would cost you, and how many loaves will that toz get you after TSHTF. If you were to store the ingredients and fuel to make that bread for lets say 15 yrs, and knowing that at anytime in between in case of an emergency you could break that out and feed your family some bread, instead of paying a tenth gram for a loaf or whatever the price is. It makes the gold is money thing a moot point. Thousands of years ago some people used giant stone coins as money, what’s that mean to modern people like us. Or how about the value of goats to nomads in modern Mongolia. Take a kilo bar of gold to them or some tribe in New Guinea and see how far that gets you. How much will they‘re lives change if TSHTF very little. Now if I had to bug out and had no warning, I have BO bags for my family with some PMs for trade, also I could easily get to and take more along or come back to it without much worry that it would be found. But it’s not the end game for me.
 

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What do you mean "your money"? you must have missed my earlier post. I don't back money in any form, I keep It, I have it, just like gold and silver, but I don’t believe in it. I think it is a store of value that follows rules, it seems that the rules that are ripe for change. If you’re all stocked and ready to go when TSHTF that’s great, buy gold and silver, but putting all of your eggs in one basket is a bad idea in anything. The "Bread for gold in Zimbabwe" is exactly what I'm talking about, how much bread do you think can you make for the $1,580 a toz would cost you, and how many loaves will that toz get you after TSHTF. If you were to store the ingredients and fuel to make that bread for lets say 15 yrs, and knowing that at anytime in between in case of an emergency you could break that out and feed your family some bread, instead of paying a tenth gram for a loaf or whatever the price is. It makes the gold is money thing a moot point. Thousands of years ago some people used giant stone coins as money, what’s that mean to modern people like us. Or how about the value of goats to nomads in modern Mongolia. Take a kilo bar of gold to them or some tribe in New Guinea and see how far that gets you. How much will they‘re lives change if TSHTF very little. Now if I had to bug out and had no warning, I have BO bags for my family with some PMs for trade, also I could easily get to and take more along or come back to it without much worry that it would be found. But it’s not the end game for me.
There's quite a few holes in your argument here that I'll point out for you. First it is your money as you are a citizen of the USA, but that's not really the point, it's the devaluing of the fiat against a real and known thing valued by people all over the world. You really must go into the history of money to truly appreciate what PM's represent. Second, you missed the point of the gold for bread thing because you fail to understand what it is that Zimbabwe has gone through, as a nation of people. Do some research on the subject and it will make you cry. Zimbabwe was once the jewel and bread basket of Africa.

Realise please, that there are very few people in the world with the ability to be able to store large amounts of food (years worth). You may not realise, but most people in this world live from day to day. They are hardly able to feed themselves enough to stay healthy let alone think about storing years worth of grain just in case TSHTF.

Taking a few exceptions and making an argument with them is childish at best, but you're not a child are you, so what then - ignorant? You know what I meant but couldn't agree with me so had to stoop to the lowest form of wit, sarcasm. I can still take my gold to either Mongolia or PNG and convert it into the local currency, you won't be able to do that with US dollars in the not too distant future.

We here on SB are all well aware of the sea shells as money, sticks as money etc. We also know that when a fiat currency is debased to the point where it triggers hyper-inflation, PM's preserve your wealth in a way nothing else can. The seriousness of what is currently going on in the financial world is not to be underestimated, we are on the verge of some major events that will likely change the way we all live forever. You don't have to believe me, it will all happen in due time.
 

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I think Dondlego and others are just splitting hairs on definitions is all.

mon·ey
1. A current medium of exchange in the form of coins and banknotes; coins and banknotes collectively.

cur·ren·cy
1. A system of money in general use in a particular country.

wealth
1. An abundance of valuable possessions or money.

com·mod·i·ty
1. A raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

So I think Bernanke is just giving the literal definition that 'gold is not money, as defined by the dictionary'... My silver eagles are money, but only worth $1 currency face value.

The real question is "does gold have VALUE"... and of course the answer is a resounding "YES" and even Bernanke couldn't dispute that. Even "does gold have value within the monetary system" could be answered yes and no.

Technically, gold is a commodity. Once it becomes stamped into an eagle with a $ symbol put on it, it becomes money in the states. But of course we all know that is bull****. It obviously can and does have intrinsic value as money, even in raw or simple form.
 
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