Wednesday, July 13, 2011

Ron Paul vs Bernanke: Why Do Central Banks Hold Gold?

Today Congressman Ron Paul questions Federal Reserve Chairman Ben Bernanke in a U.S. House Financial Services Committee Meeting shortly after reports surfaced that the Federal Reserve was preparing for a third round of quantitative easing.

Analysis in an article by Agustino Fontevecchia on his forbes blog says:
"The interesting exchange served as one of the few times Bernanke has been publicly pushed off his comfort zone by an elected official. Rep. Ron Paul brought up the issues that he’s famous for, namely, a sort of allegiance between the Fed and the nation’s most powerful institutions, the illusion of fiat money, and the gold standard. Bernanke, angered and bothered, had no option but to respond"
Great question by Ron Paul:
"why do central banks hold gold?"
Bernanke answers:
well, it's a tradition.
The campaign for liberty blog follows up on this with an interesting fact:

"central banks in developing countries have been diversifying out of paper money and into gold bullion."

Business insider says that the line from Bernanke's testimony this morning is getting some folks all atwitter (first time i see that word!!!) and asks the question:
"if not tradition, what exactly is the argument for gold having value?"
Blogger George Washington (nice name) on Zerohedge points out:
Fed Chairman Bernanke Says "Gold Is Not Money" ... But His Predecessor Alan Greenspan Disagrees
Another great blogpost and commentsection for those who follow this debate!

Bill Turner writes:
"In the twilight of his career, Paul is finally striking gold. Perhaps it is not in the vault of the Federal Reserve, but it is in the mainstream of the public's consciousness. How he spends his new fortune can shape the course of fiscal policy for the next generation of libertarian thinkers and politicians."

In the meantime Bachmann and Santorum are going nowhere and democrats are desperately trying to regroup around the supposed Obama doctrine. The theory that Bachmann is an anti-establishment candidate is false, I will write an article on that sometime. Ron Paul, Bachmann and Palin are on the rise since aprilbut, as New Hampshire Senator Judd Cregg says: Bachmann has a problem.

One cadidate has always been true: Ron Paul. Standing up to the Washington machine, guided by principal, watch the Ron Paul add, airing in Iowa:

Ron Paul on freedomwatch comments on Gold, Money and the Constitution: "Ben Bernanke was very blunt.

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