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ben bernanke market signal

The Bernank Says To Ron Paul That Gold Is Not Money

by Trace Mayer, J.D. on July 13, 2011 · 6 comments

Reading time: 1 – 2 minutes

This has to be one of the most ironic and ignorant statement I have heard come out of Washington. The tail risk is with people like Bernanke running the Federal Reserve, Trichet running the ECB, the eurocrats trying to run the rating agencies and politicians trying to design everyone else’s lifestyle.

It appears that despite a fairly short consolidation that the next gold upleg has started. The gold 50dma is $1,522.03 and the 200dma is $1,423.69. The silver 50dma is $36.06 and the 200dma is $32.24.

During this upleg that will likely last until November before a correction or consolidation may see gold run to $1,800 and silver to the $55-60 range. It will be important to see the activity over the next week or so to determine whether the strength will stay. If the monetary metals pull back slightly and continue their usual summer consolidation then it will help the 200dma continue to rise which will lay a stronger base for the autumn and winter rally.

 

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6 comments

ABOUT THE AUTHOR: Trace Mayer, J.D., author of The Great Credit Contraction holds a degree in Accounting, a law degree and studies the Austrian school of economics. He works as an entrepreneur, investor, journalist and monetary scientist. Follow him on Twitter. This is merely one article of 241 by .
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{ 6 comments… read them below or add one }

1 Henry July 15, 2011 at 9:28 pm

I’m no Bernanke supporter. But he is telling the truth when he says that gold is not “money”. Gold is gold, no more and no less. Gold can be used as “money” as can anything else that a person is willing to except in trade. There never will be a thing called “money”.

Henry

2 Van Prince July 24, 2011 at 9:15 pm

If we replaced paper money with PM, wouldn’t this limit economic activity? Wouldn’t economic activity be limited to the amount of PM available/in circulation? Wouldn’t this limit/decrease the general standard of living? How does this work?

3 Matt K. September 17, 2011 at 6:37 pm

The 2 comments above are SPOT ON.

Gold is NOT money, in that money is just a CONCEPT. Anything can be used to TRACK who owes what and where. You can use PAPER, ROCKS, SEA Shells… it does not matter what you use.

In the age of computers ‘money’ has become nothing more than ‘digits’ which exist only are electrons !

The argue of ‘pegging’ ‘money’ to Gold is that it is harder to counterfiet Gold than simply printing money.

See how it works now?

Money is a concept made up by humans. So, the idea you can ‘make money’ is NOT the point. The point should be that money only REPRESENTS intangible and tangible goods and services.

Money is the SYMBOL only. Just like the equator is not a line you can use to wrap a gift with… the equator is just a CONCEPT.

Money is just a measurement, no different from inches, meters or any other form.

4 Anita September 19, 2011 at 5:09 pm

In 5000 years of history, nothing significant could ever change the universal value of gold.

5 David H. September 26, 2011 at 2:31 pm

Ron Paul has been after the Fed Chairmen for a long time! The other day I was watching videos of both Alan Greenspan and Ben Bernanke testifying in congress. When it was Ron Paul’s turn to question them, he goes for the neck. He told Greenspan once that he highly advised him to get a new profession. His line about virtually nothing backing the fiat money, seems to be a consistent position of his.

6 Trace Mayer, J.D. September 26, 2011 at 6:28 pm

David H., Yes, Ron Paul has been very consistent about currency and legal tender. That is why he ran for Congress decades ago.

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