Bernanke Flip-Flops: Will Be Keynote Speaker At Blockchain Conference

Echoing his predecessor Greenspan's shift to the 'dark side' (fully supportive of a gold standard after leaving office), former Fed Chair Bernanke now appears to be full-heartedly supportive of cryptocurrencies having warned in 2015 of "serious problems" with bitcoin due to its "instability" and "anonymity."

As CoinTelegraph reports, in an interesting turn of events, former chairman of the Federal Reserve Ben Bernanke, will be the keynote speaker at a Blockchain and banking conference in October hosted by Ripple.

Bernanke is an interesting call for the keynote speaker as he has criticized cryptocurrencies in the past... (via Qz.com)

[Bitcoin]'s interesting from a technological point of view. We’re in a world where the payments system is evolving quickly and new approaches to managing payments are proliferating, and some of the ideas around bitcoin will no doubt be useful in doing that.

 

But I think bitcoin itself has some serious problems. The first is that it hasn’t shown to be a stable source of value. Its price has been highly volatile and it hasn’t yet established itself as a widely accepted transactions medium.

 

But the real serious problem that it has is it’s anonymity, which is a feature, and is also a bug, in that it has become in some cases a vehicle for illicit transactions, drug selling or terrorist financing or whatever. And you know, governments are not happy to let that activity happen, so I suspect that there will be oversight of transactions done in bitcoin or similar currencies and that will reduce the appeal.

But flip-flopping former Fed Chairs is nothing new once they leave office...

The gold standard was operating at its peak in the late 19th and early 20th centuries, a period of extraordinary global prosperity, characterised by firming productivity growth and very little inflation.

 

But today, there is a widespread view that the 19th century gold standard didn’t work. I think that’s like wearing the wrong size shoes and saying the shoes are uncomfortable! It wasn’t the gold standard that failed; it was politics. World War I disabled the fixed exchange rate parities and no country wanted to be exposed to the humiliation of having a lesser exchange rate against the US dollar than it enjoyed in 1913.

 

Britain, for example, chose to return to the gold standard in 1925 at the same exchange rate it had in 1913 relative to the US dollar (US$4.86 per pound sterling). That was a monumental error by Winston Churchill, then Chancellor of the Exchequer. It induced a severe deflation for Britain in the late 1920s, and the Bank of England had to default in 1931. It wasn’t the gold standard that wasn’t functioning; it was these pre-war parities that didn’t work. All wanted to return to pre-war exchange rate parities, which, given the different degree of war and economic destruction from country to country, rendered this desire, in general, wholly unrealistic.

 

Today, going back on to the gold standard would be perceived as an act of desperation. But if the gold standard were in place today we would not have reached the situation in which we now find ourselves. We cannot afford to spend on infrastructure in the way that we should. The US sorely needs it, and it would pay for itself eventually in the form of a better economic environment (infrastructure). But few of such benefits would be reflected in private cash flow to repay debt. Much such infrastructure would have to be funded with government debt. We are already in danger of seeing the ratio of federal debt to GDP edging toward triple digits. We would never have reached this position of extreme indebtedness were we on the gold standard, because the gold standard is a way of ensuring that fiscal policy never gets out of line.

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Bernanke represents another major player in the world of traditional money and investing who is now a champion of digital currencies.

Comments

3LockBox Looney Sun, 08/27/2017 - 14:52 Permalink

Let's review some of the claims:"It is totally anonymous.""The bankers and the Fed hate it.""It will save us and give us back our freedom.""It can not be tracked.""It is limited and can not be made out of thin air."And if you want to question or consider any of these "factual statements" you are just full of "FUD".Use that new buzz word and any "trivial claim" is simply not worth discussing or investigating.Shoot when my clients start asking me questions about any claims I am going to say they are simply full of "FUD". My closing percentage will now be 100%. Wish I could of found the "FUD" buzz word years ago!

In reply to by Looney

Pinto Currency BlindMonkey Sun, 08/27/2017 - 15:08 Permalink

Cryptos hacked:http://www.zerohedge.com/news/2017-07-22/pippa-malmgren-talks-bitcoin-refugee-crisis-and-plunge-protection-team"... But the reason it matters is because of the speed at which you can process information. We now have quantum computers. The Chinese apparently have the fastest. There is D-wave out of British Columbia, but basically you can break a block chain password or a Bitcoin password in like less than a minute if you have a quantum computer. The question is who is going to have them, and the answer is mainly governments but big corporations are buying them like crazy. Volkswagen just bought one. We are going to see major corporations buying that computer power. ..." 

In reply to by BlindMonkey

VD (not verified) Pinto Currency Sun, 08/27/2017 - 15:19 Permalink

Bernanke is simply getting as many crypto-muppets into Tulipcoin to send their FRN's to ZERO and clear some of that M2. Deep State has quantum computers that can hack blockchain any time they want. how stupid do you have to be to buy Tulipcoin?

In reply to by Pinto Currency

Advoc8tr Pinto Currency Sun, 08/27/2017 - 16:11 Permalink

LOL  ... the blind leading the blind.Quantum computers can't do brute force attacks (which is what the "quote by idiot" claims).   look it up ffs.Further more the blockchain does not have passwords ... it has public and private cryptographic keys.What it indicates is that we are winning ... they are starting to jump ship to avoid being nobodys when their system fails and the world keeps humming along without them. The efficiency of P2P is making them irelevant.

In reply to by Pinto Currency

Save_America1st Advoc8tr Sun, 08/27/2017 - 16:30 Permalink

The Bernanke says:  the first problem is that bitcoin "hasn't shown be a stable source of value." okay, try to explain (in honest and truthful facts, if you can, you psychopath) how the dollar is now worth about 98% LESS than in 1913 since the FedRes central bankster/gangster system was created and since it was unpegged from the gold standard???  Please explain how that shows stability and value over time?  I dare you.BTW...just heard a little tidbit about the cost today to mine 1 total BTC....about 1500 dollars in energy cost.  And it's only going to get more expensive to do so as the last several million of them will be harder and harder to get.It's so not too late to start buying small amounts of BTC and some others of your choice now, folks.  You don't have to buy a whole fucking BTC.  Just open an account and get a digital wallet and buy 100 bucks at a time.  Or 50, or 20...it's doesn't matter...it's so fractional that you can buy very small amounts and you are now using another way to get your fiat out of the bankster system and preserving (or greatly increasing) it's value over time.The dollar is dead, bitchez.   It's all zombie bucks now. So he who gets the most out of the system first will preserve the most value after the collapse compared to those who waited longer or stashed away less.  It's very simple. And don't forget your phyzz Ag and Au, bitchez!!!  ;-)   

In reply to by Advoc8tr

Creative_Destruct Save_America1st Sun, 08/27/2017 - 21:22 Permalink

"We would never have reached this position of extreme indebtedness were we on the gold standard, because the gold standard is a way of ensuring that fiscal policy never gets out of line."Thank you Captain Obvious!Even an IYI has brief moments of intellectual honesty and clarity.And, yes, critcizing BitCoin for not having "shown to be a stable source of value" in light of the Fed's 98% debasement of the dollar is like a snail calling a fish slimy.  

In reply to by Save_America1st

3LockBox 3LockBox Sun, 08/27/2017 - 14:59 Permalink

Wonder if these Central banks printed any of their unlimited FIAT to pump the cryptos...Gains for all! You can't lose! Wave of the future! Get in now before it is too late! Those chains? Don't mind those! You will be stinking rich! Oh the bag holders at the end? Screw those suckers! Lets make some quick cash and control humanity!

In reply to by 3LockBox

grizfish Looney Sun, 08/27/2017 - 15:44 Permalink

Doesn't matter.  You can beg from the privacy of your own computer, anywhere.The great thing about it is that it can go up or down with a single keystroke.  Not like the Zimbabwe Dollar where it cost a million $Z to make a zillion $Z bill.  After the crash you can buy gazillions of them for nothing and store them away from the banksters in your own hard drive.

In reply to by Looney

GodHelpAmerica (not verified) Sun, 08/27/2017 - 14:41 Permalink

Central bankers herding ignorant and myopic "free-money libertarians" into totalitarian control over their money.

GodHelpAmerica (not verified) Sun, 08/27/2017 - 14:42 Permalink

Bernanke's positive endorsements are alarm bells ringing for imminent failure.

eltxamo GodHelpAmerica (not verified) Sun, 08/27/2017 - 20:26 Permalink

on the opposite. crypto will save the world for inflation. soon everyone will get universal basic income in $ and Euros and the smart people will invest in crypto. the dumb will spend it and keep working. but there will be no inflation. gold will still be a game between central banks but crypto is for the people not the corporations althought i see a few investment funds and pension funds getting in. quick be faster than them.!

In reply to by GodHelpAmerica (not verified)

Soul Glow Sun, 08/27/2017 - 14:45 Permalink

I haz so many coins Im rich!  I haz bitcoin, whoppercoin, wallmartcoin, and soon Ill haz Bernankcoin!  Were all goin to be rich off the coins!