Wednesday, July 13, 2011

Fwd: Gold is not money :)


From: larry.r.trout

'Paul: Do you think gold is money?

Bernanke: (pregnant pause) No.

It's not money?

It's a precious metal.

Even if it has been money for 6,000 years, somebody reversed that and eliminated that economic law?

Well, it's an asset. Would you say Treasury bills are money? I don't think they're money either, but they're a financial asset.

Why do central banks hold it?

Well, it's a form of reserves.

Why don't they hold diamonds?

Well it's tradition -- long-term tradition.

Well, some people still think it's money.'

http://www.theatlantic.com/business/archive/2011/07/bernanke-to-ron-paul-gold-isnt-money/241903/

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