With all due respect, I think Dr. Paul missed an opportunity to invoke the US Constitution that states [Article 1, Section 10] "No State shall ... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; ..." One might argue that this is a restraint on the States rather than on the Federal Government, but it clearly recognizes gold (and silver) as money.

Allah....lol

Allah....lol

'Gold is not money'… except in Utah

with the 2011 enactment of the Utah Legal Tender Act

http://wp.me/pPkXP-vC

-sovereignthink

I loved it when Congressman Paul asks him why are you holding gold and not diamonds? Bernankes "Uh" moment was priceless. lol.. Then when he says "its traditional", he pretty much is confirming that gold is money.. nice job Dr. Paul! lol.. that was awesome!

Need a valid reference to this anecdotal observation...Exactly what is the name of this mysterious group, that which is specifically not named in Ron's stream of consciousness rant?

"There is still a free-market group that calculates the CPI the old fashioned way and they come up with a figure - in spite of all this weak economy - that prices have gone up 35%, 9.4% every year."

Reply from The Daily Bell

Good question ... There is Shadowstats ...

Historically Gold is money because it is concentrated wealth that can be easily moved when needed.......How else can you get out of dodge with your wealth intact?

"a boot stamping on a human face - forever"

"Do you hear laughter, Rameses?"

"It is my conclusion that the opposition may arise from a misunderstanding of the nature and function of Real Bills."

Your conclusion is spot on. The history of Real Bills in America has been all but erased. Yet, it was Real Bills which created the might of the U.S. economy. The Real Bills market was destroyed with the prohibition of gold ownership ordered by F.D.R. in 1933.

The only salvation for the U.S. economy and the American people is the return to a redeemable currency system. However, the total ignorance about the function and the nature of Real Bills are the greatest obstacle.

Generation after generation growing up with irredeemable currency and credit are entirely incapable to see Real Bills as "a promise you can take to the bank". They do not understand that the "credit" behind a Real Bill is furnished by the consumer and his urgent demand for the finished product.

People have to understand that an economy flourishes when business practices are based on honorable dealings recognized by long standing commercial law, as is represented by Real Bills Doctrine. This was the practice by which currencies were created in the American colonies and the Unted States from 1750 until 1935, and it built this country. Since then, people have been led to believe that only central banking and an army of contract and tort laywers can insure that an economy produces maximum benefits for society.

The inability to save an irredeemable central bank currency has rendered the population entirely dependent on government and the central bankers.

However, by its very premise, an irredeemable currency inevitably destructs in the long run with grave consequences for society. This now becoming more and more evident.

Today, people are so trained to look for their survival to government, that an alternative is hard for them to contemplate. The political propaganda coming from the media and the education establishment will never give a hint to the alternative represented by the redeemable currency system based on the use of Real Bills.

There is no greater advocate nor present day academic who explains the nature and function of Real Bills more clearly than Professor Fekete.

The readers can find him at Click to view link

@speedy. Thank you.

Prax

Conspiracy theory which is going to blow your brain out of skull:

The Anunnaki needed gold to heal their home planet's atmosphere.

So missin' gold from 9/11 and Forth Knox, Russia, Germany went to The Anunnaki!

Click to view link
Click to view link
Click to view link

"There were also the lands of Thule and Hyperborrea in the north, which are believed to be sunk below what is now the north pole." Compare to Thule Society which created NSDAP.
Click to view link

On a 1992 visit to Austria, the Dalai Lama specifically asked to see the Mountain, calling it 'a sleeping Dragon' and 'The Heartchakra of the World' (chakra refers to an energy center in eastern terminology).
Click to view link

You know stories of Erich von Daniken how gods were flyin here. And George W. Bush was talking to them: Fought in the Name of God

"I think many people use God as their justification for violent and aggressive actions," Bushman said. "Take the current conflict in Iraq as an example. Bush claims that God is on his side. Osama bin Laden claims that God, or Allah, is on his side."
Click to view link

George W. Bush also fought biblical war of Gog and Magog: "Incredibly, President George W. Bush told French President Jacques Chirac in early 2003 that Iraq must be invaded to thwart Gog and Magog, the Bible's satanic agents of the Apocalypse."
Click to view link

Conclusion: Our gold went to Anunnaki to save atmosphere of their planet.

"Why not - Loan - the money to The People, instead of to the bankers?"

Didn't you know? That's exactly what they did. They didn't loan any real value. The money sprang into existence as an obligation. The only thing that gives it value is the backstop that YOU are obligated to pay it off with real goods. You owe it. The recipients of the cash infusion will collect it from you. First when they spend it and end up with real property in exchange for it, then when it comes time to pay the 'interest' on it.

I first read about Real Bills in one of Professor Fekete's articles and how the international Real Bills market provides liquidity to complement the use of gold as a medium of exchange (in addition to its preeminent role as a store of value). It made a lot of sense to me intuitively and since then I have remained of the same mind.

It therefore came as a surprise to me to learn that the American Austrians opposed his proposal and I have seen some very closely reasoned opposition to it on this forum. It is my conclusion that the opposition may arise from a misunderstanding of the nature and function of Real Bills. Nevertheless I still believe it is a valuable contribution to the debate on what might replace the current monetary system and the question Dave Jr. posed is a very good example of the situations that would exist if there were no banking system at all.

Just another day of, life in The Wolf State.

The thing that got me was when Ron Paul asked, why not give the money to The People, instead of the bankers.

As I recall, The Ben Bernank replied along the lines of, We have lent money, not given it away.

Ok then:

If The People - if I - were given a loan with such sweet terms as the bankers received I could have bought a house or invested in a productive business and I - or The People - could have paid that loan back too and The People would have been much better off compared to enriching the bankers and their buddies.

Perhaps overall price increases would have been the same in both outcomes, or even less if The People received the money, it seems likely that productivity and employment would be improved? (Not so much housing though, those prices Need to fall)

Of course the best option was nothing should have been doled out.

At any rate, the question Ron Paul put forth seemed like it needed to be rephrased, "Why not - Loan - the money to The People, instead of to the bankers?"

I just wish more readers could express the function of Real Bills as well as you have in your post.

A redeemable currency system based on Real Bills represents positive value and allows people to save. The current irredeemable Fed central bank currency is monetized debt. It has a negative value, and it is totally unsuitable as a vehicle for ones savings.

If you watch the YouTube clip, you could definitely see Bernancke's trepidation about beings asked these questions. I sensed a fear on his part of being asked much more pointed questions than Representative Paul actually posed.

This is where Real Bills come into play. The supplier of their raw material would draw a Real Bill against them and they would have three months to hire their workers manufacture their goods and sell them before the Bill came due.

When they sell their goods they can draw a Bill against the merchant who buys the goods, sell the Bill in the market and pay their workers.

Their supplier in the meantime would have sold their Bill in the market and receive their payment for their wages.

This is I believe how the Real Bill market works and it fills the Bill for the scenario you have described.

I also believe this is a good illustration of the economic fact that wages are not drawn from capital.

http://youtu.be/gRdfX7ut8gw

QE1,QE2,QE3, Like Ben TOPOL'S Daughters, Tradition.