Gold is better than money. It is always worth the same in dollars. So you buy it at $1600 an oz and it drops to $1,000. or less. So many people would say you lost money. That's just not true, gold is always worth what gold is worth. All it means is that whatever you could buy with $1600 at the time you paid that for gold, is the same amount you could buy for $1000 when gold is that price. Gold is a true market. It is not however an investment, just a hedge against the dollar. Drop the Fed. Someday we'll see them for what they are, an organized and legal crime syndicate who is not Federal and has questionable reserves... unless you count the printing presses.

Gold isn't monentized in the USA since 1933 when FDR signed the Gold
Reclamation Act, made holding Gold a criminal offense for anyone but
coin collectors like myself. This Statute created the building of the Gold
Depository at Fort Kox Kentucky with an armored calvary batallion to
guard it, thus securing the trading for Gold purchased rubber from the
areas invaded by the Japanese during WW2. Finaly, it required all the
Americans holding Gold bullion coins to sell their Gold to the U.S. Govt.
for $35 Silver dollars per Troy oz. Does anyone know why ? (clue is the
price of Gold. From 1789 through 1932 the Constitution established the
monentary value of Gold at $20 Silver, oz for oz, by ratio ). The answer
to the question is that because there was no FDIC and SEC to regulate
against crim bank fraud, and crim insider trading fraud, our changing
monentary system was wide open to extreme financial/credit abuses
worse than the financial meltdown and bank bailout of 2008. The Fed
is owned by the Rothschilds who have owned all the major London
Banking houses for centuries, loooong before the American Revolution.
The Wall st investment bankers, Goldman Sachs, the Fed, and it's
Rothschild's owners are connected on both sides of the pond. Bankers
have always been attracted to the lure of Gold. Their insider traders
manipulated the Stock Market Crash to fleece millions of Americans
out of their savings invested in the Wall St Ponzi Scheme, which was
merely an extension of the Fed Ponzi Scheme. As a result, 40% of
all the Gold Bullion coins were hijacked, smuggled out of the USA.
and ended up in Rothschilds' owned Banks in Switzerland & France.

The real problem was in the nature of Gold per se. Gold is so beautiful,
exerts such an allure over so many people of perception, that traditionaly
citizens holding Gold reserved it for emergencies and saved it outside of
banks where it couldn't be audited for accounting. From 1929-1933, the
local banks outside NYC complained of too many Gold Notes, but too few
Gold coins. People usualy didn't trust Banks because there was no FDIC to
protect the security of their deposits from Bank Fraud or Armed Robbery.
Jobs were often payrolled, and new jobs created with Gold coins. So the
hijacking of 40% of the entire Treasury w/in 4 months was'nt noticed for
4 years because people would not be parted from their Gold any more than
you can part a true Westerner from his Henry rifle. It was Rothschilds'Fed/
Goldman Sachs/Wall st insider traders' hijacking of Americans' Gold money
that caused the extreme shorting of the money supply which caused the 10
year Great Depression & 35% unemployment. Once a bank panic was
created with people stampeding to withdraw their money before the banks
failed, the USA was ripe for martial law to keep order and prevent invasion..

As you can see in the Frank Capra/Jimmy Stewart movie: It's a wonderful
life, a bank holiday was declared to prevent the banks from failing, then
an Executive Order issued devaluing the U.S.dollar to 60 Copper cents.
The USA never recovered from this colossal Grand Larceny of the public
Treasury. The Fed which was created to step in and prevent Bank failure
stood by idly, watched, and did nothing because they were complicit. These
Banksters wanted the Great Depression of 1929-1939 to happen because
they knew it would take a military buildup and World War to restore the
economic equilibrium. The Rothschilds fomented WW1 in Europe then
bribed the U.S. to establish their Fed Trojan Horse here to loan them their
fiat currency to finance WW1. The French & English uberrich overlords in
those countries demanded Germany make War reparations IN GOLD to
settle the armistice. Germany made it's final WW1 reparations payment
settling the Userers debt before the end of 2010. You think credit cards are
tough to pay off ? It took Germany 90 years to payoff the debt they were
suckered into by their Rothschilds Fed. The USA still owes it's WW1, WW2,
Korean War, Vietnam War, Gulf War debt. By the time Hitler Bush jr.'s Piracy
R US regime came along, they had to raid the Social Security Trust Fund to
finance the current Iraqi & Afghanistani Wars.(The Bagdad central Gold
depository was looted of it's $20 Billion overnight in Sept.2006 in a scenario
scripted in the movie Kelly's Heros.) I doubt there's any Gold left in Ft. Knox.
If there is. it's likely Gold plated lead bars as Banksters only believe that Gold
is REAL money. King Cobra Bernanke IS grinning if you look closely enough.

My point to using History is motivated only to remind y'all History always
repeats itself because humans are too ignorant to learn from it's mistakes.
It was the lack of post WW2 demobilization and the subsequent constant
military buildup that caused President Eisenhaur to warn us of the menace
to society the M.I.C. endangers us with. That speech ran a close parallel to
President Jackson's 1830s speech against the Fed prototype. And Lincoln's
speech denouncing Douglas' wanting to make the USA: " the Slaver Terror
of the world " As President Ted. Roosevelt's speech against J.D Rockefeller's
Big Oil Monopoly/ Corporations. Noone recalls their speeches either. But as
we're now on the event horizon of another Great Depression worse than the
20th century foxes caused. The coming Great Depression that will realize the
collapse of the U.S. FRS notes. And martial law to guarantee your rations of
gasoline, food, water, medicine, tobacco...It might be a good idea to think on
this. The History channel's series Life After Humans has detailed why all we've
built up will disintegrate w/in 300 years after we're gone. Humans won't likely
be here after 2100. The Earth & Nature will see to that. Hyperhurricanes,
extreme drought, famine, floods are coming while we're " debating " why.

But the St. Gaudens $20 Gold coins President T.Roosevelt commisioned
to be minted will litter the jungles & deserts of the Earth. Why ? Because
all the Gold you'll ever see has survived 11 Billion yrs.Water won't dissolve
it. Air won't burn it with rust. Acid won't dissolve it. Even a thermonuclear
detonation won't destroy it. You likely never knew that Gold is not of this
Earth, originaly, that it can't be created by humans either. And nothing
has all it's unique qualities & uses. Is Gold money ? My God. Sure you
can't take it with you. And water & food & shelter are more important. But
Gold is the King of all the various monies. That's why people prospect for
it, collect it, and save it. It won't save your life. But it will save a sense of
stability. Aren't you tired of the roller coaster ride of boom & bust cycles
Fed Banksters have suckered the USA into over the past 98 years ? How
many times do we have to be played for their fools before we wake up ?
It's precisely the central Banks who are buying up Gold with their Ponzi
Scheme scipt like there's no tommorrow. Of course Bernanke know's it's
money. It doesn't have to be monentized any more to still be money. Savvy
people will always accept it as money because it's super special.You don't
have to make Money your God to understand when God created humans
He created an inherent need to use money to regulate, order the lives of,
and hopefuly to make humans responsible, if not to civilize humans too.
Money is heavy- even gravely important. It's no wonder it took the realy
heavy atomic elements to remind people of that very salient fact. Only the
inhabitants of the boneyards of the world don't need REAL money. Too
many of them are the Patriots who died to maintain our way of life. As
Jefferson said: " The tree of Liberty has to be watered from time to time
with the blood of Patriots to remind us Liberty isn't free " I don't doubt the
free masons who wrote the Constitution guaranteeing us precious metal
money knew more than we've forgotten. Counterfeiters were executed then.

Gold is absolutely money, just not one that will work for our society anymore. Most of that is the product of pure mathematics, though. As the supply of above-ground gold stock does not anymore increase at the same rate as population growth, going to a gold-based money system would be constantly deflationary.

Gold is not money because you can't just print up more gold if you run out.

That said, it isn't immune to be overvalued like anything else. It has a lot of uses, but when speculators can cause a bubble in the market it get overpriced. If the economy were to collapse tommorrow, I'd much rather have a clean mountain stream in my backyard than a 1,000 gold bars.

Gold is not money. It is a commodity, like all commodities that are traded in exchange for another commodity. The value of gold is just as dependent on perception as paper money. If I value you goat, and goats go for 1 oz of gold, but you would not accept anything less than 2 oz, your goat is worth 2 oz of gold. Tomorrow when I come to meet your price and you raise it to 3 oz and I really need that goat so I pay your price, that is inflation. Paper is a means to a more convenient form of representing value, just as a credit card represents value.

The fallacy that gold never suffers from inflation is BS

Lapis lazuli was considered more valuable than gold or silver at one time. I think the potential of the American people is a good thing to bank on, and that metal with limited usage is a fickle basis for barter. Our economy could collapse due to the idiots we hired to manage the country, but the only way gold will be a viable currency is if our corporate overlords decide to go back to that archaic and ridiculous system. I could mention as well that I think the Stock Market is one of the most illogical financial institutions possible. To have a system that fluctuates in value daily for various lame reasons, doesn't make a lot of sense. Bubbles are created to sucker in new money. Why did companies like Sears suffer when the dotcoms failed? Sorry to get off track, but I really hate the Stock market.

I have a friend who lived in Burma. She lived through 3 currency revaluations, and that paper was only good for fuel and TP afterward.

North Korea just did the same thing a year or two ago. You could trade 100 old bills for 1 new bill, but only up to like 600 of the new currency.

They bought up gold and jewels as soon as they made the money, and they were in a form that was easily swallowed because those motherfuckers take all they can from you, and you had to smuggle your wealth with you if you try to leave that shit hole of a country.

If the dollar fails, kind bud will be an excellent currency.

“Gold and silver are money. Everything else is credit" - J.P. Morgan

If gold were money, I'd be able to plop down a bit of it in order to buy bread at the supermarket.

Now gold, on the other hand can be bought for a lot of money, and I suspect that some of that value is artificially inflated due to fear-mongering hype spewed by certain right-wing apocalyptic pundits...

Hi is right gold isnt money because money isnt money its worthless.

I'd like to see Bernanke be right for once, that would be special.

I suspect, if I were to take a bar of gold to the local grocery store, they would not accept it as payment for my groceries.

I haven't seen any evidence that Bernanke is being ridiculed globally, and I think the context of his statement is accurate. Money is a thing that is traded for goods and services. Gold is a passe form of money, and while it may be used in some places as currency, it has little meaning in the US. The current problem is non-regulation of financial institutions. This allows the money changers to determine the value of our lives. The Fed could stand more oversight, but the dollar is a fine example of what money is. Use gold for your teeth and jewelry, gild your car with it, eat it on your pizza, but don't make it the basis of our currency. Another poser for me is if a gold company that sees gold as such a great investment, why don't they just keep it and roll around in their huge profits each day. Instead, they trade it for dollars.

riddle me this all you gold pushers out there:

If the US does in fact fall into "total economic collapse", with the spread of anarchy and the demolition of the rule of law, and you really needed to trade some of your excess stuff away, would you genuinely be happy trading real, useful commodities for a sack of shinny, soft metal? I would laugh at anyone trying to push gold in that scenario. So does gold honestly have any real objective value? absolutely not.

The only reason it's been used for so long as currency is because our ancestors were dumb, religious fanatics, and were willing to trade food, water and other supplies just to get a piece of this attractive shinny hunk of earth that they really had no use for.

Just wait until the precious metals bubble pops.

Monetary policy is a distraction. The problem is fiscal policy.

Gold is for losers...that being said, Bernanke is a laughing stock for many many reasons this being only one

Gold is not money. Its value is currently artificially inflated. People who have it are trying to convince others it will be valuable when the economy collapses. This is so more people will buy it and drive up the price. Gold is a currency based on fear and has no value to me. Try investing in clean water, sustainable food and firearms if you are so scared.

"this $1.5 trillion alone would multiply into $15 trillion once it circulates through the U.S. economy and if Bernanke on top of that unleashes any additional quantitative easing, it will just about guarantee hyperinflation."

Bernanke is stupid, but this specific statement is even dumber.

First off, in order for 1.5 trillion to turn into 15 trillion any bank that received any of that money would need to, immediately, loan out ALL of the money they received. And even then, the inflation would only be theoretical unless the loans started getting swapped around as currency. Only then would it become actual.

Secondly, be very, very, very skeptical of anyone who warns you about "hyperinflation." It's only really happened a few times in history, the most famous case being Germany after WWI in the early 20's. And, contrary to popular opinion, that was not caused by the German government printing money to pay off their debts (that only caused about 10-20 times inflation). The million dollars for a loaf of bread hyperinflation was caused by the Ruhr industrial region shutting down for six months in protest of the French occupation. That's when shit got out of control.

I bring this up for two reasons. One, the amount of money you need to "print" to be hyper-inflated is ludicrous, like in the hundreds of trillions in the United States. Second, inflation is not really a problem, at all, so long as wages, loans and prices accommodate the shift in supply. Literally nothing changes so long as that happens.

Always remember, money is just an abstract representation of the ACTUAL fucking economy. The damage inflation causes is in the disruption of loans and the confusion of prices and wages. But if the actual economy collapses, as in people who make things and provide services, that's what will REALLY gets you hyper-inflation, because your money no longer represents anything valuable.

People who bitch about inflation always use this bugbear, but really, they're just rich assholes who are scared about their investments not being as valuable.

The real danger in any economy is DEFLATION, because those cause defaults and, subsequently, depressions. Unlike hyper-inflation, deflationary spirals are very easy to accomplish and far more dangerous.

So, in that limited sense, Bernanke is right. If you have to choose inflation or deflation, choose inflation every time. Deflation is damn dangerous.

In order for something to be money it has to be inherently valuable.
And of finite quantity. Ie, the demand must always outpace the supply.
Gold fits those qualifications admirably, as does Silver, Copper too.
(The Government used 38% Silver in nickles from 1942 through 1945
so that it could melt them, and recycle the valuable metal, which had
always been the practice.) But other commodities can and often have
functioned as money. Salt has been used as money in Africa, hence
the word salary from saline. Hemp has been used in barter to spare
the spending of British, French, Spanish coins in the American colonies.
Hemp has so many uses it's inherently very valuable though it can be
grown cheaply. Because MJ is always medicinal, in places where it's
been transported to where it wouldn't grow, it's been used as money
in trade because it's essential to maintaining health from disease. My
point is it's people who make money what it is. The more prudent the
person, the less likely they'll be to waste any resource, money or not.
Technicly anything that has value is money regardless of whether
it's been monentized or not. Gold was demonentized because it was
in such high demand that during the stock market crash of 1929,
40% of the 22kt Gold bullion coins were hijacked, and exported to
Rothschilds owned French and Swiss Banks. I saw that for myself
when I spent the Winter of 1979 in Geneva. Gold backing their
currency makes them so prosperous their banks resemble clothing
stores with display windows. Try to find that anywhere here in the USA.

.

In my high school civics class in 1960, Mr. Rule began by saying, "Money is bread and milk and eggs." Money, that is, the paper fiat stuff we carry around, is not money. It's debt. Money, true money, is something with tangible value whether it's bread, milk and eggs or gold. Commodities, if they are officially used in some manner to give value to printed money are, in-as-much they can have a definable value, money. Use of these items without a paper (or representative other material like, say, sea shells) substitute, is the basis for bartering. The value of money, in whatever form, is determined by the parties exchanging for goods. This is why, despite the consternation of Liberals of whom I am one, Ron Paul is right that to abandon the gold standard in favor of unsecured fiat currency backed by debt, leaves us totally vulnerable to banks, etc., who control the value of currency for their own benefit rather than ours. Only when our financial system becomes stable by establishing the value of currency with a finite backing of gold, silver, platinum or other measurable permanent substance agreed upon universally, will the value of money and the price of goods and services stabilize. The existence of the "Federal Reserve", a misnomer for a consortium of private banks, is anathema to this concept. The constitution grants the power to print and value currency to the U.S. Congress who unfortunately, delegated that privilege to "Federal" Reserve in 1913 at the behest of the rich and the apparent indifference of most everyone else (sound familiar?). Until we abolish and restructure the present system, we have nothing but more of the same to expect in years to come--if we survive that long.

technically Bernanke is correct. Its not like you can walk into your grocery store and buy groceries with gold coins anymore. People put too much value in crap in my opinion whether it the dollar or gold coins

While I would never argue that gold was and is 'money', I have to point out that the NIA is a couple steps ahead of themselves in calling for imminent hyperinflation. Hyperinflation may very well come to America's shores in our lifetimes, but not before another round of grindingly devastating (debt) deflation that brings the country to its knees.

History does not lie and Bernanke should brush up on a little history.