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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FEDbuster's picture

.308 match grade hollow points have value due to tradition (and the ability to reach out an "touch" someone at 800 yards).  Make sure you diversify your portfolio with beans, bullets and bullion.

Ponzi Unit's picture

Make that "buried bullion"?

DosZap's picture

You limited the range.............

LFMayor's picture

That's a tough shot beyond that.  I admire your optimism and possibly your skill, but think you might have a little bit more of one than the other ;0  

Zero Debt's picture

Ben should be on stage every day. Every time he speaks the once cute little gold bug is fed a little bit more fiat, growing into a ferocious gold monster.

dwilso39's picture

I working on a real time chart: he spoke from 10-12:30pm - gold increased about $15.36 during that time.


I'd like him to do appearances every day!

FEDbuster's picture

Ben does for gold prices, what Barry has done for gun sales. 

Mad Marv's picture

If he really believed this, his actions would be otherwise.

bonddude's picture

I don't know how RP didn't bust a gut on that.

Mongo's picture

He is as pshychotic as they come...

flacon's picture

Thank you for posting the video. That was CLASSIC! 

Temporalist's picture

I second that.  Thanks!

hazek's picture

I'm not the one who uploaded it, but you're welcome.

TheTmfreak's picture

Ahhh.. just as sweet as the first time I heard it. thanks! I've duely emailed this out for many to see.

RockyRacoon's picture

"The price of gold reflects many things...."  Ben Bernanke.

I'll add that the valuation of the dollar reflects only a few things.

There is a much shorter list of what the meaning of a weak dollar portends.

So, which is the better "asset"?

dark pools of soros's picture

I guess Paul will be asking soon 'so how long you think the dollar with last?'  since he can back it up by saying no fiat survives forever so it is a fair question.  But another one to avoid like the plague for the Bernak 

55 men's picture

You think he would give the same answer....Tradition? 

DosZap's picture

55 men,

No, he would say "It's the RESERVE currency of the World".

camoes's picture

Why not seashells?

morph's picture

Because there is no tradition linking seashells to wealth.

There are rarer things than Gold which have less value. 

An asset is only worth what someone else will pay for it. If everyone thinks gold is great than it is worth money. The same way paintings sell for millions. I personally wouldn't pay 10 bucks for paintings that sell for millions, except for the fact that I know I can probably sell it on to someone who would pay the earth to show how wealthy they are to others.

camoes's picture

I like seashells, they're pretty! I WANT CBs TO HOLD SEASHELLS!

morph's picture

Well if you can convince enough people that seashells are the thing to have then you'll make millions.

Millions still believe in God. Gold having value is relatively rational by comparison.

knukles's picture

They're not shiny enuf.

RockyRacoon's picture

Here's a checklist for you:

  • Transportable: Must not be bulky, too big or oddly shaped.
  • Divisible: You must be able to easily divide it into different sizes.
  • Storable: You must be able to easily store it.
  • Fungible: One piece of equal size and weight can be substituted for another.
  • Resilient: As your transporting, dividing and storing it it should not rust, melt or decay in any way as to lesson its value.
  • Measurable: Its weight should be unique to itself and easily verified.
  • High Unit Value: It should have a high value per unit of measure, transport or storage.
  • Desirable: It should be widely appealing and considered a luxury in and of itself.
  • Rare: It should be rare, but not too rare, in relation to all other things on earth.
  • Hard to Counterfeit: It should be extremely difficult to reproduce.
BigJim's picture

Beat me to it!

You must admit, though, it's hard to print seashells.

dark pools of soros's picture

so those japanese school girl used panties vending machines are really ATMs?

tarsubil's picture

He gave 10 characterists for sound money and your example has one of them: rare. This is just for the record. May God have mercy on your soul.

Temporalist's picture

Rocky just to add to Fungible: It is globally substituted and exchanged for like amounts. 

knukles's picture

Like used Japanese school girl panties.
The panties I mean.

And people think the Japs have a problem because of Fuckushittinme.

Humanity is doomed.
There is no veneer of civilization remaining.


camoes's picture



Hmmm silver rusts and decays, maybe that's why it won't be held by CBs?

smore's picture

Bitcoins?  Have you ever had a hard drive crash? Ever had a memory stick die on you?  Bitcoins are just bits, not quite as durable as metal, or diamonds...

smore's picture

How about "easy to get through a metal detector" ?

As we head into Armageddon, diamonds will rise in value too.

PlausibleDenial's picture

Umm, not so true.  Go to Papau, New Guinea and see their shell money.  They still use it as a means for exchange.  Even the IMF could not convince them to reduce the use of shell money.  I have some, but you could google for more info.

camoes's picture

But if they don't use shells at Wall Street, why do they keep playing the shell game with us?

LFMayor's picture

They don't have much indoor plumbing though. Or live past 55 years old. Not that either is a necessity, but both nice to have.

tarsubil's picture

Do these rarer things have similar characterists to gold (elemental, metal, non-toxic, non-reactive, et al)?

Long-John-Silver's picture

Crowded Beaches as people search for seashells would cause land shifts. Problems  such as Guam tipping over would happen all over the world.


LFMayor's picture

Good call, bringing that back to light.  But you know that these are the annoited and illustrious leaders you're villifying,  didn't you hear yesterday from King Putt himself that these matters are best left to professional politicians.  Tiny filthy peons like us need not understand.

LFMayor's picture

can't take credit for it, read it on another blog yesterday.  But I'm sure as hell going to spread it around!

Thisson's picture

That's funny, when Ron Paul asked GREENSPAN the same question in 2005 he got a COMPLETELY different answer:



Bay of Pigs's picture

That might be the dumbest and most ridiculous thing Bernanke has ever said.

Temporalist's picture

Here is where it all went wrong then.  Alan Greenspan on gold and gold standard: "So I think central banking, I believe, has learned the dangers of fiat money, and I think, as a consequence of that, we've behaved as though there are, indeed, real reserves underneath the system."

flacon's picture

I wonder where Alan Greenspan learned how to speak English. 

Cognitive Dissonance's picture

I'm always amazed how quickly Greenspan changed from speaking with a mouth full of marbles to being quite coherent. It began two minutes after his term with the Fed ended.

Strange coincidence, don't you think?

RockyRacoon's picture

Not really.   If he really is, in his heart of hearts, a Randian then his job is done.   He has done more than any other to bring the system down.

Since the bottom in gold in the first quarter of 2001...the U.S. dollar has lost almost 85% of its purchasing power vs. the yellow metal since then. I would think that the chart for every other currency on Planet Earth would bear a striking resemblance to this chart.

DoChenRollingBearing's picture

Nice Rocky, may have to add that one to my blog list.  I had not visited that link before.

+ $1570

RockyRacoon's picture

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