Ben Believes Gold Only Has Value Due To Tradition

Tyler Durden's picture

This happened earler:

From Brian Rogers of Fator Securities

ron paul just asked the bernank if he thought gold was money.  The bernank almost swallows his tongue, stares blankly for a few seconds and then says, “no.”

paul then asks why banks hold gold on their balance sheet?  why not diamonds?  the bernank says, “tradition, I suppose.”  so let me get this straight, banks hold billions of dollars of an asset that pays no interest or dividends on their balance sheet for reasons of "tradition".  nothing to do with anything else, just tradition.  uh, yea.  that must be it.

classic!  the bernank just revealed his fundamental adherence to fiat money and his massive misunderstanding of real money and economics.  BUY MORE GOLD AND SILVER immediately if not sooner!!!

We wonder what his answer would be as to why the dollar still has any value left: vampire blood?


This material was not prepared by Fator Securities LLC.. U.S. Persons seeking further information must contact Fator Securities LLC in New York at (646) 205-1160. This material shall not constitute an offer to sell or the solicitation of any offer to buy (may only be made at the time qualified participants are in receipt of the requisite documentation, e.g., confidential private offering memorandum describing the offering, related subscription agreement, etc.). Securities shall not be offered or sold in any jurisdiction in which such offer, solicitation or sale would be unlawful or until all applicable regulatory or legal requirements of such jurisdictions have been satisfied. This material is not intended for general public use or distribution and is intended for distribution only to appropriate investors. The opinions contained herein are based on personal judgments and estimates and are, therefore, subject to revision. Past performances are not indicative of future results.

 

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tmosley's picture

Let's tell him that all the other central bankers jumped off a of a bridge.

Scottj88's picture

The Ron Paul Revolution --

http://thehardrightedge.com/twilightzone/

Gold is Money....

Gold just made new highs in the euro/pound/canadian dollar/and now US Dollar....

Troublehoff's picture

Am I the only person on ZH who sometimes feels a little sorry for the Bernank?

He's quite obviously more comfortable as an academic, and he is forced into the brutal world of politics, and all these cringeworthy interogations.. and his voice wobbles, and I feel a little sorry for him.

Don't get me wrong, I HATE the money system.

hedgeless_horseman's picture

[CNBC]
Tradition, tradition! Tradition!
Tradition, tradition! Tradition!

[Chairman Bernank]
Who, day and night, must scramble to do the printing,
Feed the banks and trusts, say his daily lies?
And who has the right, as master of The Fed,
To have the final word in DC?

The Chairman, the Chairman! Tradition.
The Chairman, the Chairman! Tradition.

[Mama Frank]
Who must know the way to make a proper hearing,
A queer hearing, a kosher hearing?
Who must raise the debt and run the hearing,
So Chairman's free to cook the nation's books?

The Mama, the Mama! Tradition!
The Mama, the Mama! Tradition!

[Congressmen]
At three, we started Hebrew school. At ten, we learned to lie.
I hear they've picked a district for me. I hope it's pretty.

The Congressmen, the Congressmen! Tradition!
The Congressmen, the Congressmen! Tradition!

[Bankers]
And who does Mama owe for money and young dicks,
Preparing laws to bailout whoever The Chairman picks?

The Bankers, the Bankers! Tradition!
The Bankers, the Bankers! Tradition!

Manthong's picture

He who dies with the most barbarous relics wins.

idea_hamster's picture

Actually, I suspect it's the heirs of the person who dies with the most barbarous relics who are the real winners....

chumbawamba's picture

Certainly not, I have several boxes of 12GA slugs at the ready.

I am Chumbawamba.

MsCreant's picture

To bring this conversation full circle, make sure your kids know how to use them!

jerry_theking_lawler's picture

come on CW, you should divest your slugs and get OObuck....easier to hit your targets with the same devastating force.....

chumbawamba's picture

I'm saving the 00 for head shots on the NWO goons that come in and try to trample my vegetable garden.  With the IRS I'm aiming for the gut.  Evisceration.

- Chumblez.

nope-1004's picture

Every representative was calm, talking with purpose, not shaking, showing no nervousness.

Benocide, on the other hand, dogded questions.  Voice trembling, mumbling and stumbling over very simple questions, not complicated policy issues.

This, coming from the monetary 'chairman', as he answers questions about what should be done to restore consumer confidence in the marketplace.

Well, perhaps looking in the mirror might yield some answers.

Benocide gives us all NO confidence.  When Paul asked "Do you think Gold is money", I could feel a world-wide gasp, as time stood still for a moment.

Benocide confirmed he's a liar.

 

Atomizer's picture

When Paul asked "Do you think Gold is money", I could feel a world-wide gasp, as time stood still for a moment.

Berank had a chirping cricket moment!

Pladizow's picture

The silent sound of anal leakage!

eureka's picture

On behalf of US Empire & its proud hegemon-nationalist citizens, some of who post here.

zenith191's picture

Pladizow, you really must tell me where you got those delightful boobies. I need a higher resolution photo so I can pin it up as a poster on my wall! *drool*

 

smore's picture

I think the technical term is "puffies".  That might help your search for a higher res sample.

Smiddywesson's picture

Hmmmm?  Oh, I'm sorry, did you say something?  I was mezmerized by your avitar.

Thomas's picture

He really did not say what the headline suggests. He says they hold gold because of tradition. They do not hold Toyota Camrys but that is not the same as saying they are of no value. With that said, however, there is some fibbing. When asked if he is printing money he says, "No. We are creating reserves in the banking system." He is correct: printing requires ink and paper, and he is not consuming ink and paper. Thus, he is not lying but he is a liar.

goldfish1's picture

Excellent distinction between "printing money" and "creating reserves".

TheTmfreak's picture

I very distinctly noticed this when he said this. I was like what the hell are the reserves then? Its not money created out of thing air.... but its something made.... that purchases things..... of value.... and they can make it.... out of thin air....

old naughty's picture

he is not speaking to us (and there are plenty to believe him until too late...), so he is not lying but a liar, to us. :-p

SeverinSlade's picture

Correct.

Digital money creation is not the same as printing new dollars.

It's actually smart for the Fed to not print it.  Digital money creation is essentially free.  We already know inflation is even showing its ugly head at the Fed's printing presses. 

camaro68ss's picture

A Transitory Tradition Bitchez! 

Hard1's picture

The transitory tradition is the USD!

I Am The Unknown Comic's picture

WOW!!!  Fanfreakingtastic!!!  Please put that up on youtube somehow!

AgShaman's picture

Ha!

Yeah....cause then it will get 25 or 30 views.

A nice little one minute break for Bieber fans to catch their wind

fiddler_on_the_roof's picture

Good one. Hence my moniker "Fiddler_on_the_roof".

Tradition : wisdom of our forefathers. Any society that trhows away their tradition will lose it's way.

Tradition, Tradition.....

Michael's picture

Everything that comes out of the Bernank's mouth, the opposite is the actual truth.  Bernanke is Opposite Man. He's so easy to read, not like the Mystro Alan Greenspan.

I curse Bernanke  to here this song playing over and over in his head 24/7/365 till the day he dies.

Fiddler on the roof - Tradition ( with subtitles )

http://www.youtube.com/watch?v=gRdfX7ut8gw

voshnishki's picture

LOL should have thought about that before committing perjury.

TheTmfreak's picture

Forced? No. He could quit any day. No questions asked, he has asked for the flogging. Some people praise him for his "ability to work through it."

I'll give him enough credit I guess that he can take a fucking whopping, for shitty policies. However, thats his fault. He could have just stayed in the halls of academia.

RockyRacoon's picture

One cannot shame nor embarrass a psychopath.

smore's picture

Come on, he is obviously ashamed and embarrassed, and that makes it clear that he is NOT a psychopath.

NotApplicable's picture

Nobody forced him anywhere. He volunteered to lead the destruction.

As for watching him flounder, it's one of the few things that give me hope, as it displays the cracks in the facade, as opposed to Greenspin, who would just launch into theoretical gibberish, and would never answer a question directly, if at all.

Raymond Reason's picture

He might not be leading.  There is a theory that the Fed takes it's directives from the Treasury through the operation of the low profile Exchange Stabilization Fund.  The men behind the curtain. 

It's compelling, but....don't know.  

http://www.youtube.com/watch?v=2ssrcD5GdPQ

NotApplicable's picture

Yes, of course. I really meant lead, as in cheer-lead, but with puppet strings.

It is obvious there is no way that he actually does anything, as they only need him to fill out a suit while sitting in a chair.

DosZap's picture

Ahhh, Greenspin................

Here's his latest most IGNORANT statement made in my lifetime.

http://www.businessinsider.com/alan-greenspan-blames-the-us-economy-on-the-young-work-force-and-the-us-copying-china-2011-7?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+clusterstock+(ClusterStock)

The economy is in trouble because of our LAZY workers.

Who are now doing the job of THREE,just to keep theirs.

What a Buffoon.

AnAnonymous's picture

He's quite obviously more comfortable as an academic, and he is forced into the brutal world of politics, and all these cringeworthy interogations.. and his voice wobbles, and I feel a little sorry for him.

 

This guy is certainly not prepared to be hit by waves of stupidity as he is now when pseudo grilled by US politicians.

Gold is on bank balance sheet then it is money. Wonderful.

Welcome to the US world order.

DosZap's picture

Well,at least for once,he's made an honest statement.

I cannot believe he said it.

IF he goes missing, we will know why.

Shameful's picture

Sorry for him?  Why?  Trust me he will skate out of this just fine.  Gideon Gono is living in style, why should I expect any different for Zimbabwe Ben?  Hell can you point out the last time a maniacal central banker faced justice?  I can't imagine an easier job then just hitting the print button ala The Jetsons and getting fame and fortune for it.  No I feel sorry for the dumb cattle that will have their feed stolen from them because Zimbabwe Ben will price beer and pizza out of their reach.

THE DORK OF CORK's picture

Yes , I just can't hate the guy like I did Greenspan.

He seems really sorry for this mess - Bill Fleckenstein always gives the guy a break but BB was Greenspan's right hand man never the less.

 

dracos_ghost's picture

Am I the only person on ZH who sometimes feels a little sorry for the Bernank?

 

Yes, I believe you are :)

He should have stayed in academia with his unicorn and rainbow mental masturbations. If you want to run with the big dogs, suck it up. Reality rarely tracks theory.

People are trying to feed their families, not debate economic theories. His policies have not worked. Adapt and change to solve the problem -- instead he holds onto his PhD thesis for dear life. I don't know, does he think his textbook royalties are going to go down if he doesn't defend his theory to the end?

Herd Redirection Committee's picture

He is just serving his masters. 

When people ask me what I would do, or what my theory is, I tell them I believe in trial and error.  And one of the most important aspects of trial and error is knowing when 'trial' has had an error.  In other words, when the system has become FUBAR, that America can no longer be called either a capitalist economy (more like crony capitalism) nor a democracy (instead we have an corporatist oligarchy).

Scarlo's picture

I'm with ya, Troublehoff. Bernanke was brought into this because his credentials said he was the right one for the job (req'd debt deleveraging). But politics is an ugly place where skewering and grilling is part of the show.

It's a shame that soundbites don't have subtitles to educate the audience (eg. currency versus money).

akak's picture

The problem is, NOBODY is "the right man for the job", when the job consists of economic central planning.

Did not the fall of the USSR, and China's abandonment of rigid central planning, teach us anything?

Libertarian777's picture

China's cultural revolution taught us u can kill millions of peasants and still be revered as a great leader 60 years later.

Troublehoff's picture

Well, lets face it. The ponzi was irredeemable by the time the Bernank assumed power. Regardless of his stance (printing or not printing) people will be hurting.

...but it's true, what akak says about central planning, it's shite and it is the fractional reserve banking system that makes this clusterfuck possible