Ben Bernanke who today was testifying in front of a Congressional Committee made the assertion that gold is not money during an exchange with Congressman Ron Paul.
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He even went as far to say that central banks only hold gold because of tradition. Of course, both of these statements are completely absurd because gold has been recognized as a form of money for thousands of years and is still today recognized as a storer of value. The reason why the gold price keeps going up is because people recognize it as something that will maintain value in the face of economic uncertainty.
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Central banks hold gold because it represents real wealth where as monetary units like Euros, Dollars, Yen and other currency systems are nothing more than an illusionary concept that is only based on the premise of people’s confidence. These currencies are either printed or created on computer systems as digital credits and are not backed by any real financial asset.
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Regardless of what you think about gold or other precious metals, it is a historical fact that gold has maintained its value for thousands of years and for Bernanke not to recognize this very simple concept is more proof that his agenda is only to promote confidence in an otherwise broken system.
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Most people don’t understand how the central banking systems of the world work and this is why Bernanke and other assorted central banker bozos can get away with making insane statements such as the ones Bernanke made today.
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The reason why governments around the world maintain huge piles of debt on their books is because the system is designed to facilitate that exact phenomenon. The central banks of the world create money out of nothing and loan that money at interest to governments who give them bonds or debt in exchange.
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This forces the people into perpetual debt enslavement as the governments implement draconian taxes on the population to pay the interest they now owe back to the central bank. This system is nothing more than a pryamid scheme much like the types of scams that people like Bernie Madoff and other white collar criminals have run.
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http://www.youtube.com/watch?feature=player_embedded&v=2NJnL10vZ1Y
