Gold Isn’t Money? Say What?

by Floyd and Mary Beth Brown

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 5,000 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 mintae 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.

About Floyd Brown

Floyd Brown is a political innovator, writer and speaker. Time magazine wrote: “Brown has a stature among devoted conservatives that almost matches his physical heft (6 ft. 6 in. and 240 lbs.)”. Floyd has written for publications as diverse as the San Francisco Chronicle, the Washington Times, and His latest book is Killing Wealth/Freeing Wealth, published in 2010 by WND Books. Floyd writes a weekly syndicated column about politics, culture and the economy with his wife, Mary Beth Brown. Floyd also is chairman of the Western Center for Journalism
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13 Responses to Gold Isn’t Money? Say What?

  1. Martin K Keene says:

    The following is excerpted from ” The Roosevelt Myth” by Mr John T. Flynn.
    Mr Al Smith, on the FDR New Deal Democrats and FDR’s arbitrarily adjusting first the price of gold and then silver; “They are creating “baloney dollars” with this new trick.” He asked why the Democratic party is fated to be the party of greenbackers, paper money printers, free silverites, currency managers, rubber dollar manufacturers, and crackpots.
    Question bears repeating today!!!!! If you haven’t already read the aforementioned you should. I first read “As We Go Marching” also written by John T. Flynn. Next up on my list is the highly recommended “New Deal or Raw Deal?” by Burton W. Folsom, Jr.
    “It’s Deja Vous all over again” Yogi Berra.

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  3. G. Gordon Liddy Radio Show: Joe Farah Interviews Susan Daniels (Private Investigator)- Obama’s Stolen Connecticut Social Security Number « CDR Kerchner’s Blog.

    CDR Charles Kerchner (Ret).

  4. Donna says:

    This is TOTALLY EXTREME arrogance on Bernanke’s part to say GOLD is not money! It has to have something behind the dollar to give it WORTH! Just saying it is a dollar paper means nothing when you compare it from country to country..Where is the standard. He is saying WE ARE THE GOLD when we offer NOTHING as backing up the DOLLAR! Basically, other countries are going to say “WE are THEIVES and have stolen from them” and they will be correct!! WE have to GET RID OF OUR GOVERNMENT!! They are soooooOOOO CORRUPT!!

  5. Trapper56 says:

    Sweetness and Light’s article ( -revolution-was-1938) puts everything in perspective when it comes to traitorous presidential action. FDR was the most vile and dictatorial president with the most corrupt cabinet and congress we’ve seen until now with BHO in charge. As a matter of fact, I believe the current president and Senate are trying their best to emulate FDR’s New Deal.
    If you can’t get the article on the above website, Google up Garet Garrett and look for “THE REVOLUTION WAS 1938″. It is scary reading and makes one (at least me) see what we’re really up against. Garrett was a journalist, novelist, libertarian and anti-New Dealer.

  6. James C. Ferris says:

    The Federsl Reserve has alway been corrupt since it was first formed the dollar has lost Ninety-Eight percent of its value. It need to be abolished now and the money system should be given to Ron Paul since he is the only one true enough to handle it.

  7. James Sharp says:

    So, Mr. Bernanke…gold is not money? But “money” IS???

    This guy needs to go!

  8. John says:

    i would let the bernank to read this part of the constitution – Section 10

  9. rebecca fusco says:

    if gold isn’t money, then what is fort knox all about?

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