Ron Paul questions Ben Bernanke about his secret meetings with other central bankers. What have they been talking about? Is the dollar finished and is there a new world currency on the agenda? What role is gold going to play, if any? Bernanke, while remaining evasive about the details of his meetings, denies the rumors and asserts that the dollar is not dead.
Ron Paul: The Austrian free market economists had predicted all these problems would come, and they were certainly correct in everything that they said. Of course they’re not very satisfied including myself with the so-called solutions, because it looks like we’re spending a lot of energy and a lot of money trying to patch a system together that is unworkable.
So we have Congress spending a lot of money, we have Treasury very much involved in trying to pick and choose which worthless asset that we’re going to buy, and of course the Federal Reserve is involved in injecting trillions of dollars that nobody seems to be keeping track of.
But what we’re failing to do I think is to recognize that the system no longer works, but I can understand why we do this because if Congress couldn’t do this and if the Fed couldn’t do this and Treasury couldn’t do this, it would make us all irrelevant. And instead of looking at the causes of this, and then finding the solutions aren’t going to be found here, we have to make ourselves feel pretty important.
But I think there’s another reason we think we’re pretty important, it’s because in a way our interference in the market corrections that tried to come about since 1971 seem to work. I mean, the failure was established in 1971 with a system that had no way of automatically correcting the balance of payment and the current account deficits.
And that’s where the problems have been, and economists – whether they were left or right or middle – over the last several decades have always said, this current account deficit is a big problem. And now it’s totally out of hand. So here we are struggling with all these rules and shifting back and forth and really getting nowhere.
My question is directed toward, when we come to the full realization that the system is unworkable, what are we going to do, what have you thought about doing, and already we see talk in the newspapers. We see articles about a new international world reserve currency, and to me that’s pretty important, because the fiat dollar reserve system is not going to work anymore, and that’s the information that we have to accept and decide what we’re going to do in the future.
Also, this is not new in history. Currencies have failed, financial systems have failed, and generally, to restore the confidence that everybody is talking about, they usually have to go back to a currency with integrity to it, rather than just fiat money.
And, you know, the stages is there. It’s not impossible, already the central banks of the world still own 15% of all the gold that was ever mined in all of history. So they hold on to this gold for some reason, and therefore something has to give, or are we going to keep trying to waste more money and time patching this system together.
Just last week there was a report that Iran purchased 75 billion dollars worth of gold, took their reserves out of Europe, bought gold and put it in Asia. So is that a sign of the times, is that moving on?
My question is, in your meetings, and you had a meeting just recently with other central bankers, does this thought come up about a new international world reserve currency, and if so, does the subject of gold ever come up?
How do you restore the confidence? Have you recently had conversations with any central banker, and is there a move on to replace the dollar system, because the dollar system is essentially declared dead, because it’s not working, but this indeed was predictable because of these tremendous imbalances that were never allowed to be corrected, and they were always patched up. We always came in. We’d spend, we’d inflate, we would run up deficits, and since ’71 we’ve been able to correct these problems.
Could you tell me what kind of conversations you’ve had regarding a new reserve currency?
Ben Bernanke: Yes, Congressman. I don’t think the dollar system is dead. I think the dollar remains the premier international currency. We’ve seen a good deal of appreciation in the dollar recently during the crisis precicely because there’s been a lot of interest in the safe haven and the liquidity of dollar markets.
And the Federal Reserve has been engaged in swap agreements to make sure there’s enough dollar liquidity in other countries because the need for dollars is so strong. So I think the dollar system remains quite strong.
I do agree with you very much on one point, which is about the current accounts. The current account imbalances have proved to a very serious problem. It was in fact the large capital inflows in those current accounts which created a lot of the financial imbalances we saw and have led to some of the problems we are seeing, and one of the silver linings in this huge grey cloud is that we’re seeing some improvement and greater balance in our current account deficits.
Ron Paul: But does the subject of a new regime ever come up?
Ben Bernanke: No, it doesn’t.
Ron Paul: And does the subject of gold ever come up in any of your conversations?
Ben Bernanke: Only in terms of the sales that the central banks are planning.
Ron Paul later released the following comments:
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[...] Ron Paul questions Ben Bernanke about World Currency Ron Paul questions Ben Bernanke about his secret meetings with other central bankers. What have… [...]
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THIS FEDERAL RESERVE SYSTEM NEEDS TO BE DISMANTLED AND THE PEOPLE NEED TO CHARGED FOR TREASON AGAINST THE U.S. COMSTITUTION. THANK YOU DR.RON PAUL FOR STANDING UP AND BEING AN AMERICAN
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The dollar system is not dead, but it is being killed by our own government. First $700B (sorry $840B), second almost all beurocracts admit that there will be much more “bailout”. I have heard up to $8T (unsubstantiated).
This will cause inflation to run rampant and our glorious government to come to the rescue by instituting a new money system. One, by the way that will be compatible with a Euro system in both value and law (outside of the US Constitution). This will pave the way for a newer global currency managed by a global “Fed”.
Yuk!
Thanks,
k
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“The dollar system is dead”. Is this not incorrect as of late? Not just incorrect but flat out wrong?
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I for one think the economy is their way to get the banks to be owned by the Big G.Also to bring on One World Gov.This is the way it looks to me.Use fear of loss of money in the market and their you go buy them out.You are starting to see America being taken over by the NWO.But we cannot stop spreading the truth.No matter what it cost.These people are evil in the worst way.
Thank you,Ron Paul for taking a stand against them.
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Well I for one am heeding Dr. Paul’s advise and will convert at least 3/4 of what I have saved in the last 20 years to gold. I refuse to let secretive, incompetent bastards like Benanke leave me to twist in the wind! Don’t know how much gold security I can attain with 30K, but I sure as the sunrise am going to accept solid advise when it’s free for the taking. God Bless you Dr. Paul, you’re the only ethical and honest man in Congress!
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Go get ‘um Ron! But a word to the wise… history has shown more than once in either proof or speculations that speaking against these powerfull central banking systems can be hazardous to your health. Threatening and exposing the financially corrupt and elite is always a dangerous notion but still should be done at all risks.
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Although, I have to point out that there is a lot of subjective information and unsubstantiated information that will require a great amount of research. But, great reference material.
Thanks,
kev
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I didn’t look back as to who suggested to research the Zeitgeist movie(s), but thank you.
What an absolute eye opener!
Thanks,
kev
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The solution to the crisis, even now after many missteps, is to spend $10 bln to hire 10,000 new bankruptcy judges and their support staff. The purpose of bankruptcy is to create a fresh start by cleaning the slate of problems of an unfortunate or irresponsible past, and it does so without rewarding irresponsible behavior. We need to restore the rule of law, rather than reinventing government.
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bw thanks for the reply.I like you was convinced last year to buy metal for my retirement (Im 45)so I picked up tons of copper @ $3.00 a pound.I believed that I should have the actual metal and also believed gold had been pushed for a year in every publication around so it was over-sold.Well if the dollar crashes like I believe is comming I will be O.K.as long as someone wants copper.But these are things that no-one can pridict.And since all the mining is on hold,it seems I am not the only one holding an unwanted asset.If I could find actual gold at a reasonable price I would by some,but no more then 10% of my wealth.Most of my time and$ is spent growing crops and tools..But the anallegy that 1 once of gold has always bought a fine suit speaks for itself.I just fear a different future. thanks
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http://www.john-f-kennedy.net/executiveorder11110.htm
President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy’s order gave the Treasury the power “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.” This meant that for every ounce of silver in the U.S. Treasury’s vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. The ramifications of this bill are enormous.I think this order is still in effect,not sure.
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Amero was a reference to a new gold-backed standard – sorry, I wasn’t talking about Fiat.
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Thanks, Nick. Just trying to get a better view of the big picture. So, in theory, Britain goes bankrupt if the Fed doesn’t lower interest rates after WWI?
Also, it appears that changes in gold supply could create huge swings in the currency for better or worse. Assume Fort Knox stores tons of gold in their coffers if we move to a gold-backed international standard. What happens if Iran nukes Fort Knox? Gold and therefore the “Amero” goes through the rough, right? What’s the downside?
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I’m not a master historian so I don’t know if they would have gone bankrupt, but I assume they would have went through a rescission. They certainly stopped being the world’s economic leader because they spent too much.
If the gold supply goes down then basic economics tell us that the price is going to go up. I’m not sure why the “Amero” or any other kind of fiat money would go up though. Fiat money that is not tied to any gold-standard will ultimately go down in value because you can just make more of it to dodge recessions.
By the way, I think Iran would probably bomb something else, like Israel!
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Were we not already on a gold-standard when the Great Depression occurred? I thought that was why we abandoned it in the first place.
I have a hard time with Paul’s economic message sometimes, because it is extremely difficult to find counter-points. Are people ignoring him or just can’t refute him?
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No, we were not entirely on the gold-standard. Gold was still tied to money, but the Federal Reserve used its power to lower interest rates below market value in order to help Great Britain out of their deflation problems. This had a ripple effect through-out our economy causing the disaster.
There’s counter-points, but they are all bad. I suggest reading through mises.org to learn more about Austrian theory economics.
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Nick…you may want to call 1-800-686-2237 ext. 129 if you are interested in hard gold or silver. These guys have the best prices on coins according to what I have found. They are also one of Alex Jones talk radio show sponsors so you can be sure they are legitimate. As you may or may not know, stay away from paper ownership of gold, silver or anything else paper for a back up. They will screw us all out of everything less than hard gold and silver in our possession. Watch out for Obama and his cronies as well as the totally corrupt congress to put an 80 or 90% capitol gains tax on gold and silver to discourage us from buying it. However, and probably as you know, there are always ways around thug laws like that. If you are not familiar with Alex Jones Radio show at http://www.infowars.com and http://www.prisonplanet.com be sure to listen as much as possible. Alex Jones sounds a little wild and unbelievable at first but after listening to him this past year, he has always been right on the money and tells his listeners how to document everything he says if they want to check it out for themselves. His info. is real time factual first class information that everyone needs to know and respond to.
Hope this helps you out.
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Anyone been following the advice of Ron Paul, Peter Schiff, and Jim Rogers by buying Gold? I was thinking about purchasing the actual coins since I don’t have enough money to invest with Euro Pac, but then I thought I should just buy the GLD stock through etrade. It’s only 13 dollars per trade and you can get a way better deal per ounce then you can buying an actual gold coin. Anyone else doing this?
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INFOWARS.COM AND PRISON PLANET.COM WITH ALEX JONES. I RECOMMEND LISTENING TO HIS LIVE RADIO SHOW AS MUCH AS YOUR ABLE TO. THE GUY ISN’T AS CRAZY AS ALOT OF US THOUGHT HE WAS.
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BW, you don’t get my point, only people give gold and silver value. If a farmer had a broken tractor and i needed food and had a tractor, that is real value. Gold is just like paper in that sense, people are giving it value. People us humans give gold value, but to the everyday person it really does not do much. People make it a medium. You need to think outside the box more to understand what I am saying.
Let’s say if an alien race came to earth because they needed to eat sea shells to survive, then those sea shells would be of great value to them, gold nothing. Gold and Silver are just substances of the earth. People give it value, and it could be that those with a lot of it give it value, just like the banks try and give the us dollar notes value. It’s all man made value not real value.
When some Jews tried to by thier lives by giving gold to the Nazi”s, it didn’t work, it had no value for them at that sad point in time. If a nazi soldier was going to stab a Jewish person in a room, what has more value a piece of gold or a sword made of sharp steel. Get my point???
People give gold and silver value, humans give it value as a medium of exchange, but it is just an earth substance that is not needed to sustain life. Food, Water, Shelter, etc… That is what is real value. Do you understand my point now????
IF you do not, then I am sorry.
Get my point???
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We get your point but you are missing THE point here. If you are going to have a monetary system it must have checks and balances. The only thing gold does is regulate the overspending and gives creditors something to “foreclose” on. It could be seashells, dolphin teeth whatever. The operation of a fiat currency has spawn a service economy of borrowers because there are no checks and balances. You cannot trust government to manage that.
Your point is true. Food, shelter and most importantly water are the essentials we all need, this is a discussion about how to maintain value in the money system. The means to acquire those essentials. Get my point? Get my point?
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Back in the 97-98 financial crisis, asia took a rather bad beating. Even with most of its economies have trade surpluses, each individual country currencies continues to be hammered mercilessly by the likes of Soros and his hordes of blood thirsty hedge fund vampires. Some took drastic steps (such as pegging and capital controls), some beg for aids from world banks, etc etc. Asia now is in better shape thanks to lessons learnt. But we are still not immuned to the disease of the BIG APPLE. Despite uncle sam’s dollar vitually worthless yet our currency depreciates against it. How is that so? How could our monies back up by the golf standards (to a certain extend) continues to fall?
I truly think its time the world shift its attention entirely off BIG APPLE.
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tHE RADIO STATION IN pHILADELPHIA sCOTT, IS wwdb. i BUY THE TIME AND i DO A ONE HOUR SHOW. eVERY tUESDAY AND tHURSDAY AT 9am. pEOPLE CAN LISTEN ONLINE AT WWDBAM.COM RON PAUL IS RIGHT ON THE MONEY. THE STATEMENT THAT RON PAUL UST OFFER A MESSAGE TO THE AVERAGE CITIZEN SO THEY UNDERSTAND WHAT IS HAPPENING HERE IS THE GOAL OF THE SHOW. I HOPE TO GO ON THE AIR 5 DAYS A WEEK FOR TWO HOURS EACH DAY TO DELIVER THIS MESSAGE. WHAT A BETTER PLACE FOR PEOPLE TO LEARN ABOUT THIS SUBJECT THAN PHILADELPHIA?ALL OF OUR FREEDOM LIES IN THE BALANCE OF THE AMERICAN PUBLIC UNDERSTANDING HOW SIMPLE THE SOLUTION REALLY IS. AGAIN THE VALUE OF A DOLLAR COIN TODAY MELTED FOR THE VALUE OF ITS METAL IS ONLY 3 CENTS TODAY. A SILVER DOLLAR PRE 1965 MELTED DOWN FOR ITS METAL (SILVER) CONTENT IS 7.91 (SEVEN DOLLARS AND 91 CENTS) THIS AIN’T ROCKET SCIENCE.
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Everyone is reading and watching movies and trying to decipher this mess, does anyone read the Bible? A one world government and money is inevitable. We just dont know when.
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The auto industry should take a new course. This could be a good start: http://www.keppemotor.com/index.php
Might anger some oil companies though
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