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The Profound Misunderstanding of America’s Leaders

Written on Monday, July 18, 2011 by

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Ben-Bernanke

Gold isn’t money? How could America get to this point we asked in astonishment upon hearing the Chairman of the Federal Reserve proclaim, “Gold isn’t Money.”

No wonder our leaders in Washington misspend our money. They don’t even understand what it is.

For those of you without a dictionary nearby, let’s start with the Webster’s definition, which says money is “something generally accepted as a medium of exchange, a measure of value, or a means of payment.”

The Webster’s definition even though inadequate still captures the essence. Money is a store of value that was created to facilitate barter or trade. It was a store of value because a farmer would accept it in exchange for his potatoes today, and next week he could spend an equivalent value to buy a pair of overalls.

If anyone reading this column doesn’t believe that gold is a good store of value, we will happily exchange your gold for some of Ben Bernanke’s Federal Reserve Notes. And that is exactly what owners of Federal Reserve Notes have been doing the world over. As a result, since 2001 the cost of Gold in Federal Reserve Notes has exploded from 300 notes per ounce of Gold to 1500 notes per ounce of Gold. That is a five times increase in ten years.

This is a signal that people, businesses and governments now believe that the ounce of Gold is greatly preferred as a store of value to Federal Reserve Notes.

But the people’s preference for Gold and Silver over pieces of paper with a printed promise is, as Rep. Ron Paul told Ben Bernanke in the same hearing, “at least 5000 years old.”

Money is an English word first used in the 14th Century. It has been in common usage since that time. The origins are relatively simple. Webster’s again tells us the word “is derived from the Middle English moneye, from Anglo-French moneie, from Latin moneta or mint… from Moneta, epithet of Juno; from the fact that the Romans coined money in the temple of Juno Moneta.”

Students of history can tell you that all along, the best money in history has been gold and silver. This is why the Founding Fathers expressly gave Congress the right to “coin money.”

Since 1971 the link between Gold and the US Dollar has been broken. And since that time we have seen unprecedented destruction of the value of the dollar through inflation. We are old enough to remember penny candy and gasoline at 33 cent per gallon. In the 1970′s, Publishers Clearing House gave away the “ultimate mansion” –and the value was $100,000 dollars.

Inflation is an ideal way for countries to tax their populations both rich and poor without admitting that they have raised taxes. Inflation is in particular a means to tax the poor and elderly on fixed or limited incomes. The most vulnerable are most effected by inflation.

The more cynical of the recent decisions made by these leaders is to actually redefine our countries measure of inflation, the consumer price index or CPI. They are so cyclical that they believe we won’t notice prices going up a whopping 9 percent a year– when they report CPI of less than half the true measure.

So we guarantee you, that an academic as schooled in economics as our Federal Reserve Chairman is, Bernanke understands that Gold is money. But he, like the rest of the Washington establishment, prefer lie to our faces about definitions. This way, they can avoid lying to us about how they have fleeced the nation to the point of our near insolvency.

©2011 Floyd and Mary Beth Brown. The Browns are bestselling authors and speakers. To comment on this column, e-mail browns@caglecartoons.com. Together they write a national weekly column distributed exclusively by Cagle Cartoons newspaper syndicate. Floyd is also president of the Western Center for Journalism. For more info call Cari Dawson Bartley at 800 696 7561 or e-mail cari@cagle.com.

This column has been edited by the author. Representations of fact and opinions are solely those of the author.

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  • http://http/aol.com sean murry

    They would screw up a one car funeral

  • jdtjd

    The fed is just the lap dog of O’messup

  • wayne

    Amen to that.

  • warren reynolds

    Urge congress to audit the fed….

    • http://yahoo.com tod

      All you have to do is Vote for Ron and Rand Paul and the Fed would be Audited.

  • tweety

    Our government is the most dysfunctional in all the world. Incredible that this mess has been allowed to go unnoticed.

  • Sal

    A bunch of dimwits, they actually think we’re that stupid.

  • http://rebelforiam.com m. sharpe

    We were warned to ‘take heed, lets no man deceive You’. Deception is mild trickery over time. Most don’t even realize that it is happening.Today,stack 1,600.00 one dollar bills against one 10z. gold eagle and most Americans would take the worthless paper. That is what deception and mis-education will do.

  • am2sweet

    Get rid of the Federal Reserve since they are nothing but crooks. They refused to show the gold to congressmen and I think it’s because they don’t have the gold anymore. They have either spent it or moved it to another country where we woudn’t have access to it. And I think most of the ‘gold’ sold off TV commercials is just getting some paper saying you own this much gold, but if you wanted the tangable gold in your hand you probably couldn’t get it. Another ponzi scheme, selling what they don’t have.

  • Johnf1234

    bernanke has the MISREPRESENTATION of the
    word money……….
    Gold and Silver were the standards in the old days.. It was until FDR started the federal reserve, that is when they enacted paper money, which is worthless compared to Gold and Silver…
    These idiots want you to believe the wrong
    ….. Paper money replaced gold only because it was forced

    • FlaJim

      Close, John. What FDR changed was the wording on paper currency that it could be redeemed in gold on demand. Gold was still the standard, allegedly, although no one really knows how the currency was manipulated with the connivance of the Fed.

      It was Nixon who took us off the gold standard, allowing the dollar to float and making it worth no more than an IOU. After instituting wage and price controls, normally an extreme wartime measure, the dollar floated very low for a while and a good amount of our gold reserves were spent redeeming dollars held abroad to bolster it.

      The regime today doesn’t give a dam since it’s populated by idealogues dedicated to the decimation of the US economy.

    • Byron

      Sorry it was Woodrow Wilson in 1913. Still a commie bast-rd.

  • CJB

    We have “leaders?” I thought we were supposed to have “public servants.” At any rate, the crunch IS coming but nobody can say when.

  • John

    Its obvious our fed chief doesn’t even know what constitutes money and value.I am beginning to think the fed reserve is really unnecessary to our country.Cut it out, save a bundle of money and go back to the gold standard.

  • http://patriotupdate.com Raymond

    They do understand.
    What they’re doing is calculated
    and evil.

    • Mike James

      calculated. cold. callous.

  • Mulewright

    The blatent ignorance, even on this forum, of what actualy happened oover the years is appaling.
    Shut your un-informed mouths untill you do the readdily available research as to the “correct” way that this travisty happened.
    Plus, learn how to use “spell check” before you post on here.
    The lack thereof makes it appear that you are what you appear to be……

    • Sharon

      Mulewright

      If you practised what you preached you wouldn’t have spelled “over”, oover, now would you ?

      Hypocrite !

  • Howard-the Banger Club

    Stop being so pick e. Now there I spelled a word wrong. God says “Pray for all in authority” (1 Timothy 2:1-2) So—-PRAY. If you don’t agree with me argue with God as He said it, not me. And, if you don’t believe in God that’s your loss. Let’s move forward to 2012 and clean out the White House starting at the top. Governor Rick Perry, President and Congressman Allen West, VP. Both are smart, moral men who believe in the Constitution and are for we the people. Go to their web site and learn more.

  • Mike James

    These leaders, for the most part, are not stupid… they are in the pocket of all the powers-to-be who wanna destroy America… some of these congressmen and the like, are total idiots, but for the most part, they ARE bought and sold daily… It was once said that ‘a smart politician is one when he realizes that he’s bought, he stays bought’…