The Bernank Says To Ron Paul That Gold Is Not Money

http://www.runtogold.com

Ben Bernanke, chairman of the Federal Reserve, tells Congressman Ron Paul that he thinks gold is not money.

http://www.runtogold.com/2011/07/bernanke-gold-not-money/

Category:

News & Politics

Tags:

• Bernanke
• ron paul
• gold
• silver
• federal reserve
• money
• currency
• economy

[NatedogJr]

...Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.

4. A "standard of deferred payment" is an accepted way to settle a debt – a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts.

[NatedogJr]

(c) A specific weight, or measure, or size to be verifiably countable. For instance, coins are often milled with a reeded edge, so that any removal of material from the coin (lowering its commodity value) will be easy to detect.

3. To act as a store of value, a money must be able to be reliably saved, stored, and retrieved – and be predictably usable as a medium of exchange when it is retrieved. he value of the money must also remain stable over time.....

[NatedogJr]

2. To function as a 'unit of account', whatever is being used as money must be:

(a)Divisible into smaller units without loss of value; precious metals can be coined from bars, or melted down into bars again. (b) Fungibility: the property of a good or a commodity whose individual units are capable of mutual substitution. For example, if someone lends another person a $10 bill, it does not matter if they are given back the same $10 bill or a different one, since currency is fungible.

[NatedogJr]

Any kind of object or secure verifiable record that fulfills these functions can serve as money. When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the 'double coincidence of wants' problem.

[NatedogJr]

Literally, Gold is an element with the symbol "Au". It is a transition metal.

Gold is money. Money, by definition, is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context.

The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past, a standard of deferred payment......