"Gold Is The Ultimate Money" says Ron Paul

GoldCore's picture

The mooted savings levy in Cyprus is a form of wealth confiscation on behalf of the EU which is making depositors throughout the Union nervous. There has been no dramatic increase in the demand for gold in recent days. However, this could be a ‘tipping point’ moment when savers realise that they are unsecured creditors of banks and their savings are not sacrosanct.


Dr. Ron Paul was interviewed by Fox after the U.S. Federal Reserve confirmed it will continue its QE program highlights the importance of gold as money.

On July 13, 2011, when Dr. Paul was a U.S. Congressman he asked U.S. Fed Chairman, Ben Bernanke, "Do you think gold is money?" and Bernanke replied, "No, it’s a precious metal."

Dr. Paul countered, “Even though it’s been used for 6,000 years?” But Bernanke denied gold was money and said, “No, it's an asset. Just like T-Bill's are not money.”

The Fox News interviewer then commented, “Cyprus has taught us that governments can confiscate money that you've earned or even paid taxes on. Rampant quantitative easing and price fixing by governments may prop up the stock markets but it doesn’t keep unemployment down. The U.S. Fed is going to continue its QE program which is good for gold.”

Gold in Euros, 2011-2013 – (Bloomberg)

If you think about refugees fleeing their country for safety do you think they use a government’s paper currency to help get them out? No it is money like gold that is used to help buy their freedom.

Dr. Ron Paul continues to believe that once the government destroys its currency it has to turn back to something it believes in like gold.

Gold in U.S. Dollars, 2011-2013 – (Bloomberg)

Therefore, Dr. Ron Paul feels a gold backed currency will be used in our economy again.

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Joe moneybags's picture

Sadly, Dr. Paul continually missed his opportunities to discuss the irresponsible (in my view) actions of the Fed with Bernanke by going off on his pet themes such as gold is money.  He only scored points against Bernanke with us gold bugs, and left the majority of the debate audience siding with Greenspan or Bernanke, who saw these Fed chiefs as pragmatic men, not bound by some economic religion. Dr. Paul is no kook, but by repeating the same tired mantra, which became the only soundbite the public remembered (even Tyler dredged it up for this article), he cast himself as an old Don Quijote, jousting with windmills.

markt61's picture

All of your comments re: inflation are spurious because in all of your conclusions improvements to manufacturing and supply have brought down prices( over the last 100 years) have not been factored in.

The key issue is normalcy bias has to checked at the door before any calculation. It still leaves gold with its current production inputs as the best guide to monetary valuation.

Audacity17's picture

Anything you can trade with is "money"  They can't print gold though.

stiler's picture



Not Whigs nor Tories they, nor this nor that,

Nor birds nor beasts, but just a kind of bat,--

A twilight animal, true to neither cause,

With Tory wings but Whiggish teeth and claws.


Ironmaan's picture


The dollar has lost over 90% of its value since 1913. The date which the FED was born.

orez65's picture

Read the following on every US Dollar denomination:

"This NOTE is legal tender for all debts public and private"

It is signed by two Government bureaucrats.

At this time I rather hold gold and or silver than NOTES, which soon will be worth close to 0.

I plan to pay several hundred thousand dollars worth of debt with a few gold coins.

Fuck Bernanke!!

LuchadorChumba's picture

Oye, that Ron Paul guy understands our powerful muscles! Most the luchadors in training here will have at least a bit of that shiny AU stuff.

Esta bien!

Our hands are firmly grasping the rope rings, we know that the chihuahua and pony show is just dos luchadors fighting for the same temporal prize, after all…we set the fight up in the first place. Expect the Eastern Luchador Club to pile drive the Western Luchador…although it could be a real long fight…so bring your saluditos and chili flavored popcorn.

Caviat: The Western societidad por Luchadors are very sore losers (they may sneak a nuclear habenero into their opponents chonies-or they may just put one in their own chomies and blame it on their ‘opponent’).

In the end, the Gold plated tungsten belt will likely go to the Luchador Chinga Flung Pu. Watch for the duality script to be played. Si, lots of the audience will be maimed and slaughtered in the process (hey, they chose to sit by the ring). Root for your fav fighter, but don’t convince yourself that its anything more than a scripted wrestling match. The owners in the VIP boxes have bet on both sides.

Volatility? Ah..si… if you’re looking at dollars, don’t vomit your carnitas if it goes to $800/oz (paper price – the physical stuff will have a wider spread…although not much if bought in pequeno quantities), and don’t have a stupid look on su cara, your face when it goes to $3k/oz. Carnival rides go up and down. Luchadors throw obstacles into the air and onto the ground. Viva el Luchador!


akak's picture

Tu debes conocer que el plural de "luchador" es "luchadores".

Ademas de eso, bien dicho!

Bastiat's picture

Next few days of pm action should be very interesting.

darteaus's picture

J.P. Morgan: "Gold is Money. Everything Else is Credit."


akak's picture

B.S. Bernanke: "Paper is Money.  Everything Else is Just Tradition."



PS: Yes, his intials are in fact "B.S.".  One of fate's little ironies, wouldn't you say?

fourchan's picture

lol i did not know that

slightlyskeptical's picture

Gold is trading at 77 times the price in 1912

Prices in general have risen an average of 30 times.

That would make gold overvalued by at least double in terms of inflation.Any price over 700 is purely fear premium

All the money being printed is replacing one debt with another. We are actually still in money destruction mode.

Gold is the biggest bubble of all in my opinion.

TrulyStupid's picture

Pre World War I, a good Cuban cigar cost about 5 cents: price of gold was 19 USD per oz.


Price of a Cohibas Churchill today: $ 18.49... a roughly 36,000. per cent increase.

Gold should cost 7200.00 oz if indexed to cigar price inflation (CPI).


little buddy buys the dips's picture

LOL....okay, whatever....i think the bigger bubble is the one around your head...

Lordflin's picture

Well... I don't know how many ways you can be called an idiot... but there is a very creative readership here...

Silver is right at overhead resistance, 29.30... gold is bumping up against 1620. A breach of either of these will take out upside stops. Meanwhile, Bernank is threatening to quit, and TPTB seem to be after Lagarde... will those same powers continue their supression efforts against the metal... probably... although even such as these are going to want a chair when the music stops. Perhaps Sinclair was right on this... more often than not is... On top of everything banks in Cyprus are on the verge of default, with no life support in sight... except, perhaps, a fire sale to the Russians...

It would be hard to picture a more bullish environment for the metals... but for you my suggestion would be throw everything you have into Facebook... it is definitely the wave of the future...

btw... didn't down flag you... what's the point?

Agstacker's picture

IMO silver is cheap, I pick up as much as I can afford to.

Toolshed's picture

Your analysis is so faulty it's beyond pathetic. You must work for a Wall St. bank.

Cleg1's picture

Your mother buried a coffee can in your backyard in 1970. If you dug it up today, which would rather she had have placed in it? $35 dollars in greenbacks or a one once gold coin?


Swarmee's picture

How about, your mother buried a can In your yard in 1963. Would you rather it contained $35 in paper bills or $35 face value in US quarters?

I think that is even more telling since the face denomination is identical, but your point on the gold value is well taken.

Price stability is being achieved by the Fed only if you consider acceleration at or near zero to be "stability", but clearly the velocity of value decay is non-zero. Most people spending real money would not consider constantly declining purchasing power to be stable. Why this mincing of terms is allowed by our representatives I cannot understand. The moment the bernank claims he is meeting his mandate he should be shown a chart of the purchasing power of the USD over his term and summarily removed from his post, at minimum. 1st and 4th amendment violations no doubt being performed against posts here keep the suggestion civil. And yes, that would be the 'chilling effect' in practice.

Quinvarius's picture

In 1912 oil was .95 cents a barrel.  Seems like your inflation guesstimate is wrong.

therover's picture

Prices of what, and how is that 'price' calculated ? 

Reason I ask is you state in 'terms of inflation'. Are you talking about the CPI or REAL inflation on things people use everyday or want to pay for in the future to better their lives or those of their children (like higher education costs for instance). 


The CPI is a total joke, and how it's rigged is frightening, yet few people know how that thing is calculated and how it's manipulated. If more people knew about that fucked up number and how it's used to derive other 'economic figures' and talking points in the MSM,  their heads would spin. 

ebworthen's picture

Federal Reserve and the Income Tax instituted 1913.

Value of dollar -97% since, so Gold is undervalued.


slightlyskeptical's picture

That would be consistent with inflation. $1/33 = $.03

$20.67 (1912 gold price) X 33 = $682.11 proper price of gold in dollar terms


ebworthen's picture

You are forgetting that the real value of the dollar considering the level of debt and M2 is really 1/3 what it appears to be.

It will be worth 1/6th what it is now when it loses reserve currency status.

6 X $682.11 = $4,092.66/ounce Gold real value.

HondaFullOfSilver's picture

Fine - except that it costs $1000-1200/oz to pull it out of the ground..  $1000 + $682 = About the current price

I like gold, but I really really like Silver.  I think I should have gone long solder...  Gold is a great store of value..  Silver keeps the world together..


Shell Game's picture

"Because gold is honest money, it is disliked by dishonest men."  ~ Ron Paul, A Case For Gold

akak's picture

"Because central banksters are dishonest bastards, they are disliked by honest men."

- Akak, The Case for Lynching

Shell Game's picture

LOL  +1


...added to my Reading/To do list.

Honey Badger's picture

In 1912 A gallon of gas was 7 cents.

In 2012 a gallon of gas is $3.50—$4.50.


In 1912 a loaf of bread cost 5 cents.

In 2012 a loaf of bread cost $375—$5.00.


In 1912 a quart of milk cost 9 cents.

In 2012 a gallon of milk cost $2.75—$3.50


In 1912 a dozen eggs cost 34 cents.

In 2012 a dozen eggs cost $3.00—$5.00


In 1912 a medium priced home cost $2,750

In 2012 a medium priced home ranges between $250.000 and $550.000

granolageek's picture

I don't know where you live, but I don't want to. Every one of you prices is at least 10% over what I see around here, and the house is 20% higher.


Also, in 1907 gold was at generational lows in purchasing power due to the inflation from the Klondike gold production, which is another reason for it to rise faster against the dollar than other commodities. (Yes, you can have inflation on the gold standard...)

SAT 800's picture

In significant fractions of the year 2012, a 1912 dime, which is 90%Silver, could be sold for $3.14; which in many states, for a sigficiant number of months in that year, would actually buy a gallon of gasolene. This is a remarkable fact; it bears thinking about.

slightlyskeptical's picture

But Gas was only a nickel in 1912, so silver has still gone up twice as fast as gas. Comprende?

SAT 800's picture

Google gives as a reference a price study from a major University; it says the price of gasolene in 1912 was 18 to 20 cents a gallon. Comprende?

therover's picture

No comprende....silver did not go up...the dollars purchasing power went down.

Ya gotta change your thought process.

granolageek's picture

uh, but silver went up less than gold. They can't both be magic.

Swarmee's picture

Other factors in play, hard to account for them all. As an example one might, I say might, be that silver is in many cases mined as a byproduct of other materials like copper. Demand for copper has certainly increased since the turn of the previous century, hence more copper mining leads to more silver production, increased supply vs gold. I'm just guessing here but industrial supply and demand for gold vs silver has changed radically since 1900, best example is creation of the computer market since then.

Bastiat's picture

Then pile on a big short--push out your chips, son.

dumpster's picture

slightly skeptal

gold is overvalued .. what did you pay for your training diapers .. another clueless 25 year old in drag and trying to push his rock through a pin prick


Only two things are infinite, the universe and human stupidity, and I’m not sure about the former.
–Albert Einstein

slightlyskeptical's picture

Diapers? The cost of cotton is up about only 2 times since 1912. On that basis gold is overvalued by about 35 times based on the price of cotton.


johnQpublic's picture

where can you get cotton diapers besides 1912?

Peter Pan's picture

The Dow hit a low of 42 points in 1904. Therefore it has increased by a factor of 350 times. I suggest that is your real bubble or else gold needs to climb by around a factor of 4 to match the DOW.

SAT 800's picture

Cherry picked data. It's how you get global warming; cherry pick the data points. hard to believe you're serious.

slightlyskeptical's picture

All I know is that day in and day out, all I hear fom ZH is that Gold is the inflation proxy. That over any point of time gold will be able to buy the same amount of goods. I show evidence that in fact gold has gone up by more than 2 times the amount of inflation over the last 100 years. When i say it is overvalued on that basis, a basis that is constantly affirmed by ZH as a whole, I get torpedoed.

There is also a ton of talk of bubbes, I think we have bubbles in every asset class. As always, the surest sign of a bubble is broad denial when the truth is brought to the table.

Serfdom Highway's picture

Productivity accounts for much of the difference you're citing and doesn't herald a gold bubble.  With a real money like gold, we would expect prices to fall over time as increases in productivity and more competition drive down costs and economic profits.  Gold should buy more of stuff like gasoline, cotton diapers, food, etc., today than it did 100 years ago. 

Changes in quality are also relevant to the discussion.

Bananamerican's picture

"There is also a ton of talk of bubbes, I think we have bubbles in every asset class"

if Gold is in a "Bubble" it is well camoflagued 

nofluer's picture

Point of information... would that be real world inflation or (FED) stated inflation or "Core" inflation?

You're talking apples, bananas, and turnips there...

slightlyskeptical's picture

I am just talking price lists from 1912 for a variety of items.

For example bacon was $.15/lb in 1912. I paid $3.89 for a pound last night. That would put bacon up 27 times compared to gold being up 77 times.

BigJim's picture

 ...For example bacon was $.15/lb in 1912. I paid $3.89 for a pound last night. That would put bacon up 27 times compared to gold being up 77 times..

I see. And was that $3.89 / lb bacon you just bought hand-smoked, organically raised, dry bacon, such as you would have had back in 1912?

No. I thought not. The costs of raising, slaughtering and processing pigs have plummeted with time because of factory farming methods. The 'bacon' you bought was factory farmed, chemically cured, water-injected shit that only resembles the bacon everyone got to eat back in 1912.

Nice try troll, but go fuck yourself.

TrulyStupid's picture

Don't forget that farming is one of the most subsidized and undertaxed industries out there and its biggest input cost .. energy..as well. Price support from government didn't really come into being until Roosevelt, then WWll and went berserk beginning with Reagan's supply side economics. Supply side economics is so ingrained in our thinking that its never even challenged or even acknowledged.

Central planning by central banks picking winners and losers is called capitalism in the MSM and accepted as such by the majority of sheeple.