I found the following exchange fascinating. I am not a fan of Ben Bernanke. I don't know that much about Ron Paul, but I can tell you he knows his economic stuff. If you want to know my take on this whole financial mess and the current debt ceiling debacle, I don't blame Republicans, I don't blame Democrats- I Blame Ben. Heck- I might even have a Tee Shirt made "Blame Ben".
Bernanke's comment that we hold gold in reserve due to 'tradition' was an instant reminder of that awesome song from Fiddler on the Roof "Tradition". While I love the song, the whole point of it, is to recognize traditions have meaning FOR A REASON. Genreally speaking, our forefathers thought most of this stuff out pretty well.When we think we know better, and create a new game plan, we often invite unintentional misery into our lives. That is whats happened with our economic policies in the last 30 or so years. We've thrown the "Traditions" out the window and invited a whole heap of trouble into the system.
For any of you that haven't understood this point yet, we hold GOLD in bank reserves not for 'traditional' or 'sentimental' purposes. We hold Gold in reserve because GOLD = MONEY. In every country, in all times, around the world. Apparently the head of our Federal Reserve doesn't know this yet. Ron Paul knew the answer to the answer he posed to Ben Bernanke- he wanted to let the rest of the world hear it out loud- from the horses mouth.
And we wonder why we're in the trouble we're in...