The Real Reason Ben Bernanke Resists the Gold Standard

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So really what the problem was, with the depression era gold standard, was that it was a central bank gold standard. We don't need no stinkin' standard.
Rickards gets it wrong with the implied assumption that nit-wits in charge can be trusted to get the pricing right. Like it would have worked if they'd just priced it right. That will never happen. They'll never get it right. So nobody should be in charge. The only reason why anyone wants to be in charge is to lord over us, to price fix.
There must separation of economy and state. There must be separation of money and state. No legal tender laws!

Warren of AZ 6:25PM May 01, 2012

Good analysis of the global gold situation. Maybe Paul Krugman, the starry eyed "economist" who could only make faces and offer glib responses to Ron Paul's excellent comments on what the Fed has done to our money since it's inception in 1913, will read this and learn something. For extra credit, Krugman could read "Where Keynes Went Wrong". What were they thinking when they gave Krugman a Nobel prize?

Bill Clopton of CA 6:01PM May 01, 2012

100th Year Anniversary of Total Misery Needs to End the Federal Reserve! Good work by Dr. Ron Paul yesterday & previous encounters w/Krugman, Bernanke, & Keitner!
RonPaul2012.com REAL CHANGE WE DESPERATELY NEED! ONLY RON PAUL IS QUALIFIED!!!

LadyLiberty of MO 5:17PM May 01, 2012

who will be responsible to value the price of gold?
The market? can you within a gold standard value gold with debt(money)?
An institution like the FED? Even if they did it right, how is it possible for all future.
Who or what else?
Any mistake here would again be the begining of the end of any new kind of gold standard, even if you have started with a fair price.

harry 3:31PM May 01, 2012

Pundits have a lifetime of fodder for commentary to live off.
To further condense and simplify, it boils down to growth vs greed.
Who would prefer 1% - 2% in yearly growth compare to returns of 20% - 30% or more? Banksters want the leverage. The neighborhood potluck barbeque goers could easily live with slow growth.
A gold/silver standard, even if it was based on a nonredeemable concept would keep in check any run away growth-which is money/credit enlarging on a whim.
From those points, it just gets convoluted with wars, future development, power hungry politicians, dumb-downed voters, etc.

razzz of CA 2:35PM May 01, 2012

The secret bankers of the Fed manipulate the markets rather than regulate them...watch this video and it will explain that these secret bankers are nothing more than crooks...it is only a matter of time before the whole thing crashes down...just look at the unconstitutional bills being passed and you can see these crooks are preparing for the crash...
http://youtu.be/e-pNZukL5fY

hwt123 of NV 2:01PM May 01, 2012

Rickards identifies the real problem - namely that governments cannot be trusted to be honest about the quantity of currency they print measured against gold holdings. Can governments be trusted with anything? Ever?
So why again submit to another gold standard, when the outcome is clear and obvious? At some point the government will ignore any kind of restraint imposed by a gold-to-currency ratio and the currency over-printing mischief will continue.
Until Rickards promotes competing free market currencies, chosen by the market - his arguments should be considered a limited hangout in support of the criminal status quo.

tom larens 11:57AM May 01, 2012

Try thinking of it like this: Ben and his friends are deliberately working to destroy our nation's currency because then it will be easier for them to change our system of government and this will make it easier for their people to achieve dominance over us. I know that most people's initial response to this idea is absolute denial ("Oh, no. Nothing could be farther from the truth. Ben is just doing what he believes is necessary. These are good men. They're just wrong, that's all.") However, if you will entertain the possibility of this idea for several days, you will see that it makes more sense than to believe that the world's central bankers are merely stupid or inept. Consider that where there's smoke there's usually fire, and that where there is destruction, it is intentional malice.

Robert of TN 10:07AM May 01, 2012

Two comments. Germany returned to the gold standard with almost no gold after the hyperinflation experience of the 1920s. Second, it was not gold that caused the deflation but the fractional reserve banking system (read Rothbard's example work on the great depression- available for free on internet)

Frank H of NC 9:25AM May 01, 2012

This is an excellent analysis. Bernanke and company are guilty of the fallacy of attempting to find evidence to prove a predetermined conclusion. They dislike restrictions placed upon them by the gold standard so they make up arguments against it using irrelevant evidence.

Arthur of MD 1:33PM April 30, 2012