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Bernanke's Speech Decrypted

Tyler Durden's picture


Bernanke's splendiferous defense of all things holy and Central-Bank-like this afternoon has a little for everyone - if you spent the time to listen/read his entire lecture. For those who did not, perhaps the following word-cloud sums up his perspective - and its odd subliminal messaging. The words Gold and Standard appear more times than Central and Bank; the words Policy and Economy are almost equal in number and very close together in this 'randomized' word-cloud; Collateral and Essential appear infrequently but oddly proximate when the random hand of Worldle is applied; the Dollar got its rightful tiny mention; and the Inflation-Deflation debate will rage on - as Inflation slightly outnumbered Deflation but the randomizer did its job and strangely placed Inflation next to Bad and Deflation next to Great. There was no mention of Oz, The PPT, Unicorns, Beard-Trimmer, Ron Paul, or Those-Bloody-Bears-On-YouTube, though the words Panic and Panics were somewhat surprisingly frequently uttered.

Source: Wordle


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Wed, 03/21/2012 - 00:20 | Link to Comment dark pools of soros
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Ron Paul was pretty smooth on Leno just now

Wed, 03/21/2012 - 01:35 | Link to Comment THECOMINGDEPRESSION

Ron was GREAT! Bernanke stuttured and was nervous tallking about the GOLD standard, anyone notice the ummmmmms?

Wed, 03/21/2012 - 04:16 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture



If someday I had to take a Fed-Ed college course I should automatically put into a genius class due to ZH affiliation.

Wed, 03/21/2012 - 05:37 | Link to Comment RafterManFMJ
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Hopefully the course will be part of a history unit.

Wed, 03/21/2012 - 07:29 | Link to Comment GetZeeGold
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Of's tradition.


Wed, 03/21/2012 - 06:38 | Link to Comment neidermeyer
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We have received your paperwork and you are pre-enrolled in re-education camp Jeckyl Island , please pack only personal effects such as glasses, all other needs will be provided by us. Our agents will assist you onto the bus momentarily.

Wed, 03/21/2012 - 10:23 | Link to Comment ChacoFunFact
ChacoFunFact's picture

Gold backed currency is not the solution.

 A Gold Standard would be an unmitigated disaster. It will lead to an excruciating deflation. Deflation is a horror for debtors, who see their debts and the interest they pay over them grow worse in real terms. And since everybody is complaining of debt so much, we might reconsider making it worse with deflation.

Winston Churchill, who was involved in the reinstatement of the Gold Standard in Britain in the twenties testified to the House of Commons in 1935, when the deflation of the Great Depression had made Gold untenable:
Look at the enormously increased volume of commodities which have to be created in order to pay off the same mortgage debt or loan.
Minor fluctuation might well be ignored, but I say quite seriously that this monetary convulsion has now reached a pitch where I am persuaded that the producers of new wealth will not tolerate indefinitely so hideous an oppression. . . . I therefore point to this evil, and to the search for the method’s of remedying it as the first, second and third of all the problems which should command and rivet our thoughts.

Deflation destroys the economy, because people have an incentive to hoard cash, instead of using it for production and consumption.

The Banking Fraternity is well aware of the disastrous deflation that Gold promotes. For instance, the Protocols say in their financial program (Protocol 20): You are aware that the gold standard has been the ruin of the States which adopted it, for it has not been able to satisfy the demands for money, the more so that we have removed gold from circulation as far as possible.‘”

--Real Currencies




Here’s how we do it.  The US government, not the fed, issues Debt Free “US notes”, that are legal tender.  The US Treasury then buys back all its pre-existing bonds in the open market with these debt-free notes.  Then they raise the reserve requirement at hometown banks at exactly the same time.  This will remove fractional reserve banking.  The amount of “US notes” in circulation should be held in a tight band where the amount is allowed to increase or decrease as a function of population or similar transparent standard. 


When the US borrows from the Federal Reserve Bank the Federal Reserve Bank only issues money equivalent to the amount of principal requested.  The Fed doesn’t issue money to the Treasury for the interest payments the US government will owe.  So where does the government go to get this additional non printed money to make good on the interest?  By borrowing more.

Wed, 03/21/2012 - 11:55 | Link to Comment lineskis
lineskis's picture

Unless debt is forgiven...

Wed, 03/21/2012 - 05:37 | Link to Comment DrStrangelove
DrStrangelove's picture

Biggest zerohedge style forreign Paul supporter... Stellaconcepts... by far





MUST WATCH!!!!!!!!!!!



STELLACONCEPTS in the building yall

Wed, 03/21/2012 - 07:03 | Link to Comment GetZeeGold
GetZeeGold's picture



Some burned out Aussie stoner calling for silver $25,


Evidently he was passed out the last time silver was at $25.


Wed, 03/21/2012 - 00:22 | Link to Comment Temporalist
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Wed, 03/21/2012 - 00:26 | Link to Comment non_anon
non_anon's picture

yeah, I've been depressed since 2008

Wed, 03/21/2012 - 01:17 | Link to Comment LowProfile
LowProfile's picture

Ah the first of the seven stages.  Been there.  Recently just made it all the way to "acceptance".

Now I'm just happy, puttering around, getting the compound kitted out...

Wed, 03/21/2012 - 04:21 | Link to Comment The Big Ching-aso
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Decrypted.    I think somebody should be put into a crypt.

Wed, 03/21/2012 - 00:26 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I'm not about to try and pine at length in the wake of what is Zh's outstanding breakdown of The Bernank's blathering bullshit, but just did want to mention how absolutely hilarious it was that one of The Bernank's central claims in his propaganda today was that economic/business cycle and banking system crises have been greater in terms of depth and duration during times when the gold standard was used, compared to when it wasn't.

I won't even get into his intentionally leaving out the fact that government safety nets such as FDIC (and many other programs) were in place at times when the gold standard had been abandoned, but just want to say that if anyone doubts that Bernanke is a psychopath and/or sociopath (given my opinion that there's no way he's less than very intelligent), today's speech was the conclusive proof that he's either or both.

Wed, 03/21/2012 - 01:14 | Link to Comment r00t61
r00t61's picture

No, I don't think he's either. 

He's just another ivory-tower academic, knee-deep in his equations and theories.  He's surrounded by other academics and policy wonks who think like he does.  It's groupthink and social norming taken to the nth degree.  There's nothing sinister there.  Just a lot of micro-intelligent, macro-incompetent alchemists.  Probably the same type of brain processes that concluded that the Titanic could never sink, that the Maginot Line was an unbeatable military strategy, that the sun revolved around the earth, that bloodletting/leeching was a useful medical procedure, that the O-ring design on the space shuttle was an acceptable flight risk.

It's not premeditated malice, only blind hubris.

Dimon, Blankfein, et. al, seem much more sociopathic to me.  Especially Hank Paulson.

Wed, 03/21/2012 - 01:22 | Link to Comment LowProfile
LowProfile's picture

Those we consider as smart people can still be co-opted, unprincipled, and make stupid mistakes...

Guess we need to raise the bar on what constitutes "smart".

Wed, 03/21/2012 - 02:17 | Link to Comment Ignatius
Ignatius's picture

Is it an accident then, or perhaps a stupid mistake, that every new dollar coming into the system comes in as an asset to the banks and a liability to everyone else?  Did he even mention debt and the debt level, or its exponential growth?

Gold is a wealth reserve asset.  That is gold's power.  That is gold's job -- securely store excess purchasing power.

Attacking the limitations of the gold exchange standard as the Bernank did is a diversion from the more important fact that all money comes in as a debt to the private bankers.  This is the privilege that he is protecting.  Governments will always issue excess tickets and undermine any set price in a gold exchange system.  That is human nature and that is the history.  That is the beginning of the confidence con... to first gain your confidence.

Wed, 03/21/2012 - 10:35 | Link to Comment Alea Iactaest
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Wed, 03/21/2012 - 02:05 | Link to Comment TruthInSunshine
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According to the DSM-IV, The Bernank arguably meets 4 of the criteria to be deemed sociopathic, whereas only 3 criteria need be met (and he definitely meets 3).

Wed, 03/21/2012 - 06:48 | Link to Comment neidermeyer
neidermeyer's picture

that the O-ring design on the space shuttle was an acceptable flight risk.

It's not premeditated malice, only blind hubris.


The shuttle booster sections were originally supposed to have a seal containing asbestos ... both our shuttle disasters were caused directly by the EPA ... disaster #1 due to crappy butyl O rings rather than a rolled/folded asbestos fabric , disaster#2 caused by foam using non-cfc propellant ... never had ANY foam problems with the old CFC stuff. Blind Hubris is right ... why pay engineers if you're going to proclaim it's "going to be MY WAY no matter what the consequences because I know CFC's are evil..."

Thu, 03/22/2012 - 19:18 | Link to Comment mkkby
mkkby's picture

Except he works for a private corporation owned by the banks.  Nothing sinister?  Perhaps.  But certainly nothing one millimeter outside their interests.  Ever.

Wed, 03/21/2012 - 00:24 | Link to Comment Scalaris
Wed, 03/21/2012 - 01:17 | Link to Comment Hard1
Hard1's picture

Actually the bedtime story says the following, which the FED is clearly failing to do

During a panic, central banks should

lend freely

against good assets

at a penalty interest rate (to discourage excessive use)


Wed, 03/21/2012 - 10:19 | Link to Comment Son of Loki
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The bedtime story says the CB is a "government agency" and it is actually a private bank I thought owned by private bankers.

Wed, 03/21/2012 - 00:27 | Link to Comment Rusty.Shackleford
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gold is bad, uuuuuuummmmmmmmkkkkkkk

Wed, 03/21/2012 - 00:31 | Link to Comment AllThatGlitters
AllThatGlitters's picture

Look carefully and you will see a clear hidden message:


First Came Gold


Get Gold

Wed, 03/21/2012 - 00:39 | Link to Comment sitenine
sitenine's picture

That's fantastic!  Thank you

Wed, 03/21/2012 - 06:29 | Link to Comment LongSoupLine
LongSoupLine's picture

A deeper message is the word "bank" being pregnant with the word "end"...wonder when it will give birth?

Mon, 06/18/2012 - 07:12 | Link to Comment l.hauri
l.hauri's picture

it is good that finally you made it. cloud storage

Wed, 03/21/2012 - 01:12 | Link to Comment Unprepared
Unprepared's picture

... and deeper message: End Bank NOW

Wed, 03/21/2012 - 01:13 | Link to Comment indygo55
indygo55's picture

And "People might panic".


Wed, 03/21/2012 - 01:33 | Link to Comment sitenine
sitenine's picture

I put it all together, and I came up with this:


first came gold

collateral essentially

dollar still short-term

cash institutions

fixed world

crisis monetary

war long

inflation bad

recession also

people might panic

exchange currency

get gold

end bank now

Wed, 03/21/2012 - 01:42 | Link to Comment Uber Vandal
Uber Vandal's picture

Giving this a closer look, I came up with:



Think Depression

Unemployment Called Good

Gold Price

Pay Well Failed


Wed, 03/21/2012 - 10:41 | Link to Comment Alea Iactaest
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Wed, 03/21/2012 - 10:21 | Link to Comment Son of Loki
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If you play his speech backwards, he says, " is dead..."

I thought it was supposed to say, "Paul is dead"?

Wed, 03/21/2012 - 00:37 | Link to Comment sitenine
sitenine's picture

Bernanke claims to have good assets in exchange for those loans he talks about.  I found that point to be quite laughable.  Solid FED balance sheet?  Toxic maybe?

Wed, 03/21/2012 - 01:13 | Link to Comment xtop23
xtop23's picture

Mark to market then ya fucker !!! 

Wed, 03/21/2012 - 01:25 | Link to Comment LowProfile
LowProfile's picture

Well, if you revalue a certain item on the Treasury's balance sheet upwards ~$50k per unit...  No problem!

Wed, 03/21/2012 - 01:49 | Link to Comment xtop23
xtop23's picture

A house in Iceland and a lodge in Switzerland, as well as a plane to shuttle between the two, would be lovely. I think I could stomach that very well indeed tyvm :)

Wed, 03/21/2012 - 00:37 | Link to Comment hangemhigh77
hangemhigh77's picture

Everything Berstooopid said is just a friggin INSULT to my intelligence. This guy is a friggin IDIOT.  How fuckin' DUMB does this guy think we are?  All you have to do is be able to read and you KNOW everything this IDIOT said is all BULLSHIT.  Harvard, Yale, Princeton, are they teaching these assholes at these institutions of higher learning?  I mean everyone who gradutaes from these schools seems to be a fucking lying thieving scumbag.  I would say you could get a guy who's been in prison for 20 years for gang rape, mutilating old ladies and murder and put him together with a graduate from Princeton and you wouldn't be able to tell the difference.

Wed, 03/21/2012 - 00:42 | Link to Comment stacking12321
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Everything Berstooopid said is just a friggin INSULT to my intelligence.

to what intelligence are you referring?

i detect none

Wed, 03/21/2012 - 07:49 | Link to Comment hangemhigh77
hangemhigh77's picture

Then the only assumption that can be made is that your head, containing whatever gray matter still firing any electrical impulses, must be firmly wedged between your butt cheeks.

Wed, 03/21/2012 - 01:52 | Link to Comment Seditious Blasphemer
Seditious Blasphemer's picture


Harvard, Yale, Princeton, are they teaching these assholes at these institutions of higher learning? I mean everyone who gradutaes from these schools seems to be a fucking lying thieving scumbag.


Self evident facts and answers are self evident and clearly not a coincidence. Also, the fact that the CFR really has had and does have its agents in every last part of the government of the United States of Prozacistan means that while we endlessly analyze the reality we face, they are creating the next reality for us to endlessly analyze, etc., ad infinitum. I refer you to my latest must read, " Battle Hymn: Revelations of the Sinister Plan for a New World Order".



Wed, 03/21/2012 - 05:35 | Link to Comment zKeyserSoze
zKeyserSoze's picture

it is biggest heist in history - need perp walks of bankers and govt officials

Wed, 03/21/2012 - 00:37 | Link to Comment Clashfan
Clashfan's picture

Every cheap hood strikes a bargain with the world.

Wed, 03/21/2012 - 00:44 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

And the USA Goverment allow these Criminals to terrorize their citizens...?

Make me fucking puke.

Wed, 03/21/2012 - 07:32 | Link to Comment bigkahuna
bigkahuna's picture

the US gov't operates at the behest of these criminals.

Wed, 03/21/2012 - 00:45 | Link to Comment urbanelf
urbanelf's picture

I've become more inclined to think that, in spite of Bernanke's nervous demeanor, he isn't really all that nervous.  He's just a crappy speaker with some weird mannerisms who's relatively confident about his stupid beliefs. 

Wed, 03/21/2012 - 00:48 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

The Non Federal "Federal Reserve" are terrorist.

Plain and simple

People even know where they do thier dirty deeds from,and allow it,with the blessing of the President.


Wed, 03/21/2012 - 00:51 | Link to Comment sitenine
sitenine's picture

I wish I was taking that class.  Oh, I would fail it to be certain, but I would get to tell Ben just a little something about reality.  That would feel very good.

Wed, 03/21/2012 - 00:57 | Link to Comment gwar5
gwar5's picture

The FED propaganda campaign makes me think Ron Paul has been effective. Having multiple countries move away from the USD on nearly a daily basis can't be good for Ben either. Noticed Bernanke's "lectures" to those poor students steers way clear of squids and gold confiscations. They are just a federal agency and here to help.

Wed, 03/21/2012 - 01:34 | Link to Comment nothing can go wrogn
nothing can go wrogn's picture

I also think it shows the success of OWS. Almost every time I saw photos or footage from OWS. Someone was walking by with an "End The Fed" sign. Although uncoordinated, that was extremely effective propadanda. Three simple words...repeated over and over and over. You may not even know what the Fed is, but you know it should be ended. Madison Avenue would shit themselves for a marketing campaign like that.

Sending the Bernank out there isn't going to counter that. In fact it could backfire. His PR campaign may actually spark more people to look deeper in to what the fed really is. That will lead them to the Internet, and sites like Zerohedge. People will be handing around copies of The Creature from Jekyll Island. This whole "End The Fed" thing could go from a respectable snowball to an avalanche.

It should be remembered that the Fed was started in a secret meeting, with people using code names. Now they want to go out to all the college campuses and tell everyone what they do? WTF?

Wed, 03/21/2012 - 03:46 | Link to Comment Wakanda
Wakanda's picture

They are on a path of self destruction.  They deeply despise themselves because of the misery they cause and at a deep level they truly want to fail.

They are not quite sure how to do it without completely destroying themselves and the people they enslave. 

This is not going to end well, but it will end soon...

Wed, 03/21/2012 - 07:31 | Link to Comment chubbar
chubbar's picture

It occurs to me that the FED may have had a "born on date" to it and it was always intended to be dismantled in order for what comes next. It may be that is what the PTB are jockeying for right now, a world central bank to control everything. So it can't be just a call to end the FED but rather a return to a sound monetary system and away from this private franchise system whereby rich families decide who to bribe with our money in order to further their interests in controlling us and keeping us their serfs.

Wed, 03/21/2012 - 07:39 | Link to Comment bigkahuna
bigkahuna's picture

I believe you may be right. I have been thinking that the fed has been extending it's debt tentacles into the euro in order to gain some type of "foot hold". 

I am not sure if we Americans are going to work up the courage to ever stop them either. Ron Paul is running for election, but it seems most people are an obamabot or republibot. We are electing people to office that are leading to our, and the world's demise.

Wed, 03/21/2012 - 01:10 | Link to Comment putaipan
putaipan's picture

whooee. i've either been hanging around here too much. i've developed a "beautiful mind" or..... i can  finally read  a chart !


we need important financial economic prices.

reserve bank set serious next war values.

england may pay next global century now.

long time failed reason  going one way .

central short term stil think- depression today.

take fact: u.s got much lender stock.

bank policy failing, see: 19th century talk.

depositer resort called unemployment.

economy good tool, go back exchange  problems.

currency states : bad inflation/lost money.

federal country talking, FED attack congress institution.

many cash institutions also market recession.

system loans 'want'.

gold get first united crisis around president.

like first problem- monetary crisis.

price stability = people might panics,

like standard monetary banking countries panic.


hey he's a LOT easier to understand than allen 'annie's bitch' greenspan was. perfectly clear to me. kind of like he's telegraphing it right into my brain

but, you know- it's kinda wierd. the word 'debt' didn't really pop-up much. go figure .


Wed, 03/21/2012 - 01:05 | Link to Comment DavidPierre
DavidPierre's picture

Who Benefited?

Insider trading 9/11 ... the facts laid bare

By Lars Schall

March 20, 2012 "Asia Times"

Wed, 03/21/2012 - 01:45 | Link to Comment gwar5
gwar5's picture

It was fairly common knowledge and reported right after 9/11 that there was unusual prior trading.  It was attributed at the time to Al-Qaeda cashing in on what they knew was going to happen.

Wed, 03/21/2012 - 05:18 | Link to Comment Jendrzejczyk
Jendrzejczyk's picture

The PROMIS software story goes really deep. Loads of fun reading for the conspiracy minded among us.

Wed, 03/21/2012 - 07:47 | Link to Comment bigkahuna
bigkahuna's picture

everyone is conspiracy minded, some people choose to buy the MSM/politician conspiracy, others choose to investigate for themselves and form their own conspiracy theory.

I say this to people who call me a conspiracy theorist and it always results in one of those "that does not compute" looks.


Wed, 03/21/2012 - 01:06 | Link to Comment Vlad Tepid
Vlad Tepid's picture

Bullish for hot air.

Wed, 03/21/2012 - 01:10 | Link to Comment xtop23
xtop23's picture

Wenzel did a pretty fair job of chopping The Chairsatan's speech to pieces regarding Gold on EPJ

( Economic Policy Journal for those not familiar )

Wed, 03/21/2012 - 01:53 | Link to Comment Aquarius
Aquarius's picture

Bernanke is wrong: The World is a Gold Standard set by Universal Principles, a priori. If Mr Bernanke believes what he says, which I doubt, then we all must be very afraid; very afraid indeed.

And there is now nothing he can do about reforming Economic Theory as he is fully  committed, that is, except abuse it further - which will just make things far worse and delay the inevitable.

He would be startled if he had the vaults of the Fort Knox opened for all to see, transparently, as to the supposed Gold Bullion reserves held therein:

I propose that if indeed a public audit showed all Gold was intact, there would be a global sense of euphoria and relief; a new platform of global growth and development would be experienced without more banker bailouts.

However, I suspect that if the audit found major deficiency in Gold quantity and standard, brought about by elite looting, the Gold Price and Demand would go to hysterical new heights. Such is the human bond betweeen man and Gold and the Nature of the physics of Life upon Earth.

Here is a must read piece by Geoff Davies of Australia on the state of the Profession of the Economists:

Here is my own piece written some time back:


And for your information: 'of Money' 


In my search to define ‘money” I have found that it seems to originate from the term ‘tributary’ being the definition etymological of small watercourse flowing under the attraction of gravity to larger water courses; from the small to the largest flow the waters, whereas this was to become the practice of paying off kings and rulers larger than oneself – that is to say, the paying of ‘tribute’.

In other words, here were the origins of the protection racket, of course, nuanced, refined and made efficient for the centralization and collection of the collective Labour Hour whereby, dynamic recursive scamming is under consensual franchise by those of the chain.

The whole global monetary system is designed to enrich a few by capturing the whole and it is indeed criminally unstable. And at worst, it controls our education systems so as to keep the game alive.

However, despite the recent disingenuous statement from Mr Bernanke on Gold, it is Gold’s value that never changes, as it is all other values that change, in spiral variation, in comparison to Gold. Gold is the only natural Universal Standard known to man. Yet few can see and thus we are condemned by our invalid criminal but consensual paradigms.



With Mr Bernanke and his fellow Economists in charge of the World today, we had better ask for the help of all the Gods, for that which cometh, for it is clear that our whole global monetary system is a racket of recursive looting which brings unnecessary suffering to the many and which is being sustained for the pleasure of the very few.


Wed, 03/21/2012 - 02:46 | Link to Comment kookaburralaugh
kookaburralaugh's picture

Hi all- newbie here on ZH...

Kookaburra laugh:

"Proponents,like Rep. Ron Paul (R-Texas), argue that a gold standard maintains the value of the dollar, under the premise that paper money is inherently inflationary. Bernanke dismissed this, arguing that while the argument may hold for long-run price stability it is not valid on a year-to-year basis. A gold standard, Bernanke said, also stops the central bank from being able to respond to booms and busts through monetary policy.

Such a standard is not practical though, Bernanke continued, as there is not enough gold in the world to achieve a global gold standard without tremendous cost (though that would undoubtedly be a boon for miners like Barrick Gold or Goldcorp). "

Ha ha ha! Correct! That's why they didn't want a Gold Standard... because you can't financially "engineer" gold... and if there was a Gold Standard there would be no need for Central Banks and the Central Bernank would be out of a job. For all the discussions and opinions about whether PMs are good investments or not, I'd much rather have some than not...

Laughing all the way to the... hang on; I was about to say 'bank'...

Wed, 03/21/2012 - 01:25 | Link to Comment gwar5
gwar5's picture

...... in his lecture notes he says people kept taking their gold out of banks when there was a problem. Exactly. It was theirs, not the money changers. 

Wed, 03/21/2012 - 01:33 | Link to Comment putaipan
putaipan's picture

just imagining the lecture with the sound of "clink clink, clink,clink ...ring" coming from the back row of the class

Wed, 03/21/2012 - 01:59 | Link to Comment ebworthen
ebworthen's picture

Images of Uncle Scrooge swimming in his vault of gold...

Wed, 03/21/2012 - 01:57 | Link to Comment ebworthen
ebworthen's picture

I'm telling you, the Gorilla is going to crush Gold and Silver somehow - outright confiscation or a taxation scheme.

I hope the Gorilla does not do this, but the PM's are the enemy of fiat manipulation so...

Wed, 03/21/2012 - 02:47 | Link to Comment Jacks Cold Sweat
Jacks Cold Sweat's picture

Uhmm. I heard gold plunged -20,3 % , is that true?

Wed, 03/21/2012 - 03:04 | Link to Comment kookaburralaugh
kookaburralaugh's picture

For anyone who may be vaguely interested in the recent (last 1000 yrs or so) history of money, and the origin of sayings such as 'good money' and 'bad money', this book might be enjoyable if you can find a copy (I bought mine years ago as a remainder):


Wed, 03/21/2012 - 04:00 | Link to Comment cnhedge
cnhedge's picture

they say gold standard is evil.

Wed, 03/21/2012 - 05:53 | Link to Comment akak
akak's picture

I say Chinese spammers and trolls are evil.

Wed, 03/21/2012 - 06:15 | Link to Comment Catullus
Catullus's picture

My favorite part is when someone argues that the Gold Standard is impractical.  That there's not enough gold in the world for transactions to take place. 

Even under a gold standard, there's still a need for transaction clearing and that clearing can occur in an electronic forum.  No one is going to be paying for a loaf of bread with gold shavings.  They have in the past 40 years paid with silver coins or copper coins.  It's not like the 1960s were so much different than now. 

It's weakest argument one can make about the gold standard.  There world is not more "complex".  That's code for "I can't imagine how it would work, so it's impractical."

Wed, 03/21/2012 - 08:40 | Link to Comment Quinvarius
Quinvarius's picture

Agreed.  There is enough gold to back the currency.  It is just priced wrong.  A situation which will be rectified through violent market action.

Wed, 03/21/2012 - 08:43 | Link to Comment Ghordius
Ghordius's picture

Agreed, though I can imagine a long steady walk up there...

Wed, 03/21/2012 - 08:56 | Link to Comment AnAnonymous
AnAnonymous's picture

Yes, sure.

For things to happen with hard currency, the exchange requires to be in physical.

With a gold standard, or a currency backed by gold, it gives room to swaps, meaning that part of supposed effects of hard currency, are negated.

But hey, it just requires to take a look at the past so I concurr, it needs to avoid getting in the fabled past sort of things.

Wed, 03/21/2012 - 08:38 | Link to Comment Quinvarius
Quinvarius's picture

I like the "o" in gold.  "first came".

Wed, 03/21/2012 - 08:50 | Link to Comment miker
miker's picture

What's so surprising.  A gold standard of any sort would crash the system?  No more inflationary spending.  No more inflationary economy.  What happens to all the debt? 

Bernanke is not stupid or evil.  He's just trying to keep the balls in the air.  Same as Geithner.  Again, I keep saying that all that they are doing (much of which we don't know about) only shows how deadly serious the game is. 

Be prepared.

Wed, 03/21/2012 - 09:10 | Link to Comment Quinvarius
Quinvarius's picture

Before Greece imploded, they had a chance to let gold run up to where Greece would have been solvent, along with everyone else.  Gold as an asset to balance debt would have made everyone solvent.  That is gold's role.  But they chose not to do that.  When Greece went belly up, they chose to let the whole system die of arrogance and bad debt.  To me that means, there no longer an upwards price target on gold because they refuse to use it correctly.  They have chosen more unbacked money printing.  Gold will go to infinity vs current paper and the economies of the West will die of Central Banker ignorance--And if you doubt they are ignorant, watch Bernanke's lecture described here.

There was always an easy way out.  Watching the central bankers squirm and cheerlead is like watching some noob with all his money in a bankrupt penny stock not dumping it.  The game is over.  They let the first domino fall.  I have stuck a fork in it.  The path is set in stone and it will be hyperinflation. 

Wed, 03/21/2012 - 08:59 | Link to Comment riphowardkatz
riphowardkatz's picture

It is a little known fact that not only does Bernanke do his own grocery shopping he also has been shaping his own beard with a flobee that he purchased on a whim one late night after some serious Great Depression studying.

Wed, 03/21/2012 - 09:20 | Link to Comment oogs66
oogs66's picture

why was he so focused on gold and the gold standard?

Wed, 03/21/2012 - 11:34 | Link to Comment Boxed Merlot
Boxed Merlot's picture

US=#1 @ 8100 tonnes

Germany=#2 @ 3400 tonnes

IMF=#3 @ 3200 tonnes

Italy and France= #4 and 5 @ 2450 tonnes


When the reset occurs, the proportions will likely remain, it's just the denomination of the reserve currency the partners agree on.

Gold is the wealth of nations.

Wed, 03/21/2012 - 09:37 | Link to Comment Aquarius
Aquarius's picture

Central bankers are the most active buyers of Gold in the World by tonnage - but people are buying more by numbers - if the news reports are to believed

Wed, 03/21/2012 - 09:54 | Link to Comment Son of Loki
Son of Loki's picture

Pink Slime not mentioned once by Ben?


Safeway to Stop Selling 'Pink Slime' Textured Beef

Wed, 03/21/2012 - 10:46 | Link to Comment hawks5999
hawks5999's picture

Think depression today

Wed, 03/21/2012 - 21:34 | Link to Comment blindman
blindman's picture

barbaric (adj.) late 15c., "uncultured, uncivilized, unpolished," from Fr. barbarique (15c.), from L. barbaricus "foreign, strange, outlandish," from Gk. barbarikos "like a foreigner," from barbaros "foreign, rude" (see barbarian). Meaning "pertaining to barbarians" is from 1660s.
barbarian mid-14c. (adj.), from M.L. barbarinus (cf. O.Fr. barbarin "Berber, pagan, Saracen, barbarian"), from L. barbaria "foreign country," from Gk. barbaros "foreign, strange, ignorant," from PIE root *barbar- echoic of unintelligible speech of foreigners (cf. Skt. barbara- "stammering," also "non-Aryan"). Greek barbaroi (n.) meant "all that are not Greek," but especially the Medes and Persians. Originally not entirely pejorative, its sense darkened after the Persian wars. The Romans (technically themselves barbaroi) took up the word and applied it to tribes or nations which had no Greek or Roman accomplishments. The noun is from late 14c., "person speaking a language different from one's own," also (c.1400) "native of the Barbary coast;" meaning "rude, wild person" is from 1610s.
Barbary c.1300, "foreign lands" (especially non-Christian lands), from L. barbaria (see barbarian). Meaning "Saracens living in coastal North Africa" is attested from 1590s, via Fr. (O.Fr. barbarie), from Arabic Barbar, Berber, ancient Arabic name for the inhabitants of N.Africa beyond Egypt. Perhaps a native name, perhaps an Arabic word, from barbara "to babble confusedly," but this might be ultimately from Gk. barbaria. "The actual relations (if any) of the Arabic and Gr[eek] words cannot be settled; but in European langs. barbaria, Barbarie, Barbary, have from the first been treated as identical with L. barbaria, Byzantine Gr[eek] barbaria land of barbarians" [OED].
relic early 13c., "body part or other object from a holy person," from O.Fr. relique (11c.), from L.L. reliquiæ (pl.) "remains of a martyr," from L., "remains, remnants," noun use of fem. pl. of reliquus "remaining, that which remains," from re- "back" + root of linquere "to leave" (see relinquish). Sense of "remains, ruins" is from early 14c. Old English used reliquias, directly from Latin.
barbaric relic. there ya go.
the holy remains of something the greeks and italians do not comprehend,
also, this lack of comprehension is not restricted to the mediterraneans?

Thu, 03/22/2012 - 06:59 | Link to Comment frederic
frederic's picture

Sorry, slightly off topic : is there software that produces those artistic graphs of words of different sizes or is this a manual operation (is there a typical name for such a graph of words). Thanks

Sun, 07/15/2012 - 15:29 | Link to Comment adnan202
adnan202's picture

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