Wednesday, December 30, 2015

Gold Is Money

-Ron Paul
When I asked Ben Bernanke whether or not gold was money, he took a long pause and answered with an explicit “NO.” I followed up by asking him why central banks hold gold if it’s not money. Again, after a pause, he simply answered: “It was tradition.”

The truth is that neither he nor I can dictate whether gold, or any other item, is money. It’s the market that has made this decision for thousands of years. I can’t make gold be money and Bernanke, even with all his central banking friends, can’t prevent gold from being money.