Ron Paul Learned Gold Is No Longer Money

Even though gold has been used as money for over 6000 years Ron Paul learned today from the Fed Chairman, Ben Bernanke, that gold is an asset. Ron Paul (R-Tx) was asking Bernanke why the injection of $5 trillion dollars did little to help main street. Paul pointed out that, “You could’ve given every single person in this country $17,000.” Instead all that cash went to bad assets to boost “the banks and big corporations.” Bernanke says the Federal Reserve has spent no money and is instead a “profit center.” He went on to explain the history of the Fed which Paul stopped by interrupting Bernanke. Paul explained, “you say it’s not spending money, well it’s money out of thin air, you put it into the market and you hold assets, and the assets aren’t, you know they are diminishing in value when you buy up bad assets.” Then he asked, “When you wake up in the morning, do you think about the price of gold.” This threw Bernanke off a bit to which he finally stated that he didn’t believe gold is money, “it’s an asset.” The only reason banks hold it is because “it’s a tradition.”