Bernanke says gold standard wouldn't solve problems … Federal Reserve Chairman Ben Bernanke on Tuesday took aim at proponents of the gold standard, saying that such a system handicaps the government's ability to address economic conditions. Bernanke spoke in the first of a series of four public lectures at George Washington University that is the central bank's latest effort to counter a raft of negative public sentiment that has arisen from its handling of the financial crisis. The former Princeton economics professor delivers a second lecture on Thursday and two more next week. – Reuters
Dominant Social Theme: Take your gold standard and shove it.
Free-Market Analysis: Ben Bernanke has come out forcefully against what may be seen as a burgeoning support for a monetary gold standard in the financial community and among the alternative media. This is newsworthy, because it begins to show what the power elite REALLY thinks about a gold standard.
The power elite that wants to create world government certainly DOES want a universal money. But, what it likely doesn't want is a money that is available to anyone who can dig it up.
We know this is anathema to the power elite because they spend considerable time and energy shutting the door to methodologies of money generation that are NOT controlled by them.
Whether it is Wall Street itself or a myriad of other monetary and financial activities, the elites make it difficult to generate capital in ways that are not supervised by their agents and enforcement officials whenever they can.
The elites do this via mercantilism, by controlling governments and creating laws that support their own enterprises at the expense of others. They then create support for these manipulations via dominant social themes.
These dominant social themes are fear-based promotions that frighten middle classes into giving up power and wealth to facilities that provide global governance. The goal of the elites seems to be a new world order with a new money and a universal government. There are indications that the elites wish to cull the larger human population dramatically as part of this evolution (see Georgia Guidestones).
While some in the alternative media community have claimed with increasing fervor that the elites DO want a universal gold standard, this has never been commensurate with the way the elites operate.
The powers-that-be have been fighting for fiat money (under their control) for centuries. Beginning with European and British central banking perhaps 500 years ago, the elites have been steadily moving away from commodity-based money and toward pure paper that is easy to print and easy to inflate.
The most significant movement to oppose the elites' affection for paper money has been the Austrian, free-market economic movement with its emphasis on "honest money" – a full-fledged, one-to-one gold standard.
In the past decade, however, as the Austrian movement has gained considerable popularity and clout, the preferred position on money seems to have evolved to one of monetary competition, which this modest paper (the Daily Bell) favors.
Money is what people make of it, and while we believe that societies at least in part would settle on some sort of private, fractional gold and silver standard, it is only through the free market itself (monetary competition) that a utile and useful monetary standard can be ascertained.
It is surely not the advantage of central banking generally to face monetary competition, as the only thing that keeps central banks in business is their monopoly control of money production.
Central banks – especially the Federal Reserve – are private in one sense and public in another. This is the way the elites work in fact. They use mercantilism, the conflation of private goals with public mandates, in order to cement control of society.
By ensuring their own goals and desires are enshrined into law, elites make their success mandatory and criminalize its failure. Thus, a private money-making machine like the Federal Reserve has been enshrined into law.
Congress passed an enabling act for the Fed in 1913 and subjects the Fed to considerable scrutiny while also controlling, along with the president, the appointment of its head. Without Congress, there IS no Fed, and this is true around the world. Everywhere you go, central banks have gained the willing or unwilling support of the governments they supposedly support.
Of course, in reality, central banks are apparently controlled by a handful of dynastic families that use the hundreds of trillions within their control to push the world toward global governance.
It is not in their best interest, of course, for these families and their enablers and associates to give up fiat money. At best, these families may wish to subject the world to an ARTIFICIAL gold standard controlled by THEM. But a free-market gold standard is not something that is in their interest.
We know this because the US itself was on a gold and silver standard once upon a time before the Civil War. Certain sophists and wily ones will make the argument that a gold standard especially is sought by the elites, but we know this is not true because the elites destabilized the US gold and silver standard and, in fact, fought a US war in the mid-1800s to implement paper money.
The argument is that the elites control all the gold (they don't) and therefore any gold standard will inevitably be controlled by them. But if this were truly the case, why did the elites evidently and obviously create a war (between the states) to implement paper money?
In fact, within the context of a private marketplace, it is impossible to sustain a monopoly. It is sophistry to maintain that people, freely trading, will support a monopoly not to their liking. The only way an elite can control the market for gold and exercise continued Money Power is via mercantilism and the continued control of government. A free market in gold and silver would deal death to their designs.
Money power fears terribly a free market in gold and silver. All their patiently hoarded metals would go for naught. They could spend every bit of it trying to manipulate fee markets and at the end would have nothing to show for it but an empty checkbook and frustrated connivances. For this reason, the "war between the states" was prosecuted. Money Power needed to regain control of money in the colonies.
Some will maintain that the war was about freeing the slaves, but anyone who looks closely at the historical record will likely come to the conclusion that the New York/European banking establishment was behind the Civil War and that its real goal was to minimize US exceptionalism and reduce the power of the republican experiment as regarded both free money and a free society.
The elites have been fighting FOR monopoly fiat money ever since. It is no coincidence that some 150 central banks now occupy most of the world's countries, when there were but a tiny handful 100 years ago. The elites have sought forcefully to emplace private/public central banks throughout the world and have succeeded in doing so.
It makes no sense, then, that the elites would now wish to revert to a free-market gold standard, much less to a gold and silver standard. Such gold and silver standards have been popular throughout history.
Common people can ascertain manipulation by checking the ratio between gold and silver. It's a good way to figure out the manipulations of a given power elite. It is not in the self-interest of central bankers to impose a credible, private market gold standard (or gold and silver) standard, and it is not surprising that Bernanke would come out against such an idea. Here's some more from the article excerpted above:
"Since the gold standard determines the money supply, there is not much scope for the central bank to use monetary policy to stabilize the economy," Bernanke said. "Under a gold standard, typically the money supply goes up and interest rates go down in a period of strong economic activity – so that's the reverse of what a central bank would normally do today."
Embodied by Texas congressman and Republican presidential hopeful Ron Paul, a loud minority advocates the closure of the central bank and a return to a gold standard where every dollar issued must be backed with equivalent reserves of precious metal.
Most economists credit the Fed for acting forcefully by lowering interest rates aggressively once it realized the magnitude of the 2007-2009 crisis. But policymakers, including Bernanke, have been chided for downplaying the housing downturn in its early stages and for turning a blind eye to flaws in the regulatory system that laid the groundwork for the boom and bust.
Some Fed critics argue that the central bank's ultra-easy monetary stance – it has held overnight interest rates near zero since late-2008 and has bought $2.3 trillion in bonds – is paving the way for future inflation.
In the above excerpt we can see the tremendous power that a central bank exercises through its monopoly manipulation of fiat money. Bernanke has "held" short rates near zero since 2007 while injecting trillions into the larger banking economy.
Of course this is nothing but a kind of price fixing. Bernanke is "fixing" the volume and price of money. In doing so, he is presiding over a tremendous wealth transfer from people who earn money to those who haven't earned it and likely won't handle it as well.
Central banking is nothing but price fixing, and price fixing never works. The dollar has depreciated some 95-99 percent since the inception of the Federal Reserve in 1913, and today, given that the Fed has injected literally tens of trillions more into the banking economy, it is very likely that the dollar reserve system is on its way out.
The power elite knows this, of course. The current growing, worldwide depression is of its own design and making as it is a direct result of central banking – the facility, worldwide, that prints too much causing first euphorias and booms and then busts.
The elites evidently and obviously want to supplant national currencies with one international one, perhaps the infamous SDRs supervised by the International Monetary Fund. But in doing so you can be sure the elites don't intend to let the markets themselves control money.
Bernanke would seem to be sending a clear message about that. However, we note that he seems to think he has to do so, and this is probably due to the success that educators like Congressman Ron Paul have had when it comes to money.
Fiat money, Greenbackerism and other inflation-oriented manipulations have been thoroughly vetted in the alternative media and no doubt these discussions have been examined at length by the powers-that-be.
Bernanke's caution about a private-market gold standard is a kind of warning squeak from the power elite that never deigned to address these issues before. That Bernanke, who works directly or indirectly for the top central banking families, has had to issue a statement on the subject is evidence that a great change in taking place in the historical monetary discussion.
Of course, as proponents of what we call the Internet Reformation, we are not surprised. We have long held that the Internet would focus attention on these previously abstruse issues and begin to undermine most if not all of the dominant social themes that the elites use to control people and move the world toward global governance.
Within this context, Bernanke's statements can be seen as further evidence that even the basic memes of the elite are under attack. They must be most uncomfortable now for Bernanke to make this statement.
They must, metaphorically, be making such statements between gritted teeth. It is NOT something they wish to do. They wish to treat monopoly fiat central banking as a GIVEN, something that is never to be commented because it is natural as breathing.
Only it is not. And the billions of words now expended on the subject of this illegitimate and destructive monetary system are likely, finally, having an effect on the powers-that-be. Not even the top powers of the world can keep an entirely illegitimate system in place.
There is, in fact, no place in the world for a system that allows a handful of people to print up to US$50 trillion on a whim to support their cronies while the rest of the world is struggling to get by on a dollar or two a day.
Since entering office in 2006, Bernanke has taken several steps to make the central bank more transparent, including holding quarterly news conferences and publishing policymakers' own projections for the path of interest rates.
This statement toward the end of the article profoundly misses the point, of course. The elites' staggering monetary manipulation has played out over the Internet in the past decade, and its profound IMMORALITY is public knowledge. More transparency is the LAST thing the system needs.
We have been arguing for a long time that many of elite memes are dying or dead thanks to the Internet and central banking may be chief among them. This squeak of agony from Bernanke is further proof that the top powers feel a need to protect central banking and to challenge its detractors.
The trouble is that central banking came in with assurances that it would modify monetary manias and ensure the system stayed solvent and steady for the benefit of the average person. As it has done none of that and has been exposed as horribly unjust and even genocidal system anyway, it is difficult to see how the elites intend to defend it going forward.
The alternative, in fact, is some sort of PUBLIC gold standard or global monetary standard controlled by the elites who have set up the current system. Bernanke's comments can also be seen as paving the way for a further evolution within the context of these parameters. But the LAST thing the elites want is a private gold standard or private money generally.
Ironically, unless they can gain significant control over the Internet, private monetary standards may indeed be in their future, which would jeopardize the entire program of global governance as their funding sources would dry up.
This will likely be the final battle of the Internet Reformation in our view – the struggle by the elites to move away from the failing and exposed central banking system toward another system ALSO controlled by them. Whether they can pull it off remains to be seen. The world's economy would seem to hang in the balance.