Ron Paul vs Ben Bernanke: Is Gold Money?

  • Gold still has to have a demand side to determine its value. Just like the USD. How would you ever have enough reserves to back a currency with such a large money supply? 60k an oz for gold what would determine the price of that?

  • there’s no such thing as ‘not enough gold’. Its as silly as saying there is not enough trees for paper money.

    there is little gold in the market at $600/oz. There will be lots of gold in the market at 60000/oz. It is all a function of price.

  • why?

  • and if that happens then I want my securities to be considered a currency, I want goods sold to be a currency rather than an asset.

  • Correct. This is pretty much the prevailing wisdom people who are infatuated with Ron Paul seem to have never heard. You are not guaranteed a dollar that will increase in value over time. I don’t know the exact numbers but there’s something like 8 trillion dollars worth of gold; 165k metric tons being produced at 2.5k metric tons a year. There is simply not enough gold to back a currency that represents such a large population. Paul suggests gold should be a separate currency non taxed,

  • lol ya you’re right. Ron Paul really gets at the heart of the issues. He’s not just scapegoating and skimming the surface of the problem. When he says things like 5.1 trillion didn’t go the consumer it went to the banks, corporations, and buying toxic assets you know he has no ulterior motives. Because 5.1 trillion in added deficit went straight to corporations banks and toxic assets. What is so complicated about this? It’s not economics its pandering.


  • most-basic my ass, ya twat

  • We shouldn’t back the dollar with gold. The gold supply is limited and can’t grow as fast as the economy needs to grow. So it would put a crimp on growing our economy and prosperity. It would cause recessions and depressions and high unemployment. Most money today is digital, entries in spreadsheets.

  • Lincoln used a fiat money, the greenbacks, to fight the civil war. The banks wanted 25 – 35% to lend the government money. So, effectively, Lincoln said, “No thanks, I’ll print my own.” It
    was debt free money and it functioned well. A cause of the Revolution was that the colonies were using paper money and were prospering. Then the King decreed the colonies must use silver and gold. That caused a depression.

  • Gold is not money. Money is what the government says it is and what you have to pay your taxes with, and what you have to use in exchanges of money for goods and services. Our
    government has a fiat money system. It is not backed by gold. So, gold is not money.
    And gold historically was not always the money routinely used. The English used wooden sticks for over 400 years as money.

  • “Give me control over a nations currency, and I care not who makes its laws”






  • Yes most basic concepts.

  • lol okay

  • I better clarify the Gold thing too, so you don’t think I was serious about that as well. The amount of gold mined per year is roughly 2500 metric tons.

  • Yes that was a joke. Also he attended Harvard, he taught at the business school for Stanford, and economics at Princeton.