Bernanke is in front of House Financial Committee - link

[sailingaway]

MetroFax MetroFax
#econ Watch Ben Bernanke's Testimony To Congress Live, "Prepared To Respond If Stimulus Needed": Watch live the ... http://bit.ly/nIAhQ3

Benny's voice is shaking, at the moment.

He is fearmongering on 'deflation'

[sailingaway]

Hilarious retweet from Financial Committee:
FinancialCmte Financial Services
It did RT @FinancialCmte: .@RepRonPaul: I imagine my retirement from Congress may put a smile on Ben Bernanke's face.

[sailingaway]

And speaking of twitter, this is nice:


2012twit Election Analysis
by JustHearSay
Most retweeted #2012GOP past 24hrs @RepRonPaul 327 @RepPaulRyan 282 @THEHermanCain 119 @GovChristie 110 @MikeBloomberg 59 @timpawlenty 58

[sailingaway]

Ron is on NOW

[HOLLYWOOD]

RON is UP!

Calling out Bernake, Backus, and Barney Frank... BS stimulus, spending and inflation

[Revolution_Ready]

HAHAHAHA ....Ron Paul to Bernanke, DO you think gold is money????....... Bernanke......Ummm no?!?

[sailingaway]

Well, I hope people were watching. Ron tried a few things that didn't work (not bad, just B wouldn't take the bait) but he hit home pretty well I thought when he asked, if consumer spending is the issue, why is the Fed giving money to banks and wall street instead of to consumers?

and at one point he asked 'is gold money?' and there was a long awkward pause, then Bernanke said 'no.' So Ron said, "If gold isn't money, why do all central banks hold is as their reserves? Why not diamonds?" Another long awkward pause, and Bernanke says, "Tradition."

[Gumba of Liberty]

Ron: Why do you buy gold? Why not diamonds?

Ben: Uhhh Tradition

HAHA What a moron.

[HOLLYWOOD]

Well he did catch Bernake on a contradiction.

BERNANKE, "Well you are mistaken, saying the FEDERAL RESERVE had spent any money, you say $5 Trillion?... we've lent money, we have purchased securities, that's not buying, uh DISSIPATING...'

GOTCHA... uncle Ben quickly changed it to dissipating... then tangent to FED PROFITS for US governments.

[tsai3904]

YouTube:


http://www.youtube.com/watch?v=2NJnL10vZ1Y
http://www.youtube.com/watch?v=2NJnL10vZ1Y

[sailingaway]

I also liked that he interrupted Bernanke when Bernanke tried to filibuster.

"I'm sorry to interrupt.... but my time is running.... and you say there is no cost but since you print the money out of thin air...."

[Sweman]

Enlighten me. Why not diamonds?

[Gumba of Liberty]

Enlighten me. Why not diamonds?

Gold is liquid, meaning it is divisible. You can melt gold down and make small coins, large coins, bars, etc. Diamonds are the strongest substance known to man.

[Sweman]

Gold is liquid, meaning it is divisible. You can melt gold down and make small coins, large coins, bars, etc. Diamonds are the strongest substance known to man.
But if that is the reason, why can't nations keep their reservs in diamonds. If you have to move billions or millions you can do it with a bag of diamonds and even it out with gold. Sounds practical to me.

Your answer still leaves me with questions. Could the problem with diamonds have more to do with fluctuation of value?

[tsai3904]

Nations keep reserves in gold because it has historically been used as money and may be used as money again in the future. Just because Bernanke says they hold it for tradition doesn't mean that's the only reason.

[Sweman]

Nations keep reserves in gold because it has historically been used as money and may be used as money again in the future. Just because Bernanke says they hold it for tradition doesn't mean that's the only reason.
OK, but still I don't know why it's bad today to hold large reservs in diamonds. I think they traditionally have value too.

[Bern]

We have the technology to make diamonds. People still haven't found the Philosopher's Stone.

[A Son of Liberty]

But if that is the reason, why can't nations keep their reservs in diamonds. If you have to move billions or millions you can do it with a bag of diamonds and even it out with gold. Sounds practical to me.

Your answer still leaves me with questions. Could the problem with diamonds have more to do with fluctuation of value?

First, there can be variations in the quality of individual diamonds.

But, to your question, there is no reason why diamonds couldn't stand as a form of currency. That's up to the market to decide, ideally.

[Sweman]

We have the technology to make diamonds. People still haven't found the Philosopher's Stone.
Well, that explains it. Thanks.

[PermanentSleep]

LOLOLOLOLOLOLOLLOLOLOLOL @ Paul's smirk immediately after saying "eliminated that economic law" start at @5:10

[Sweman]

First, there can be variations in the quality of individual diamonds.

But, to your question, there is no reason why diamonds couldn't stand as a form of currency. That's up to the market to decide, ideally.
Yeah. My question actually was, why should't the market accept it as currency/safety? But then Bern reminded me of synthetical diamonds and the reasoning sort of fell apart.

[sailingaway]

But if that is the reason, why can't nations keep their reservs in diamonds. If you have to move billions or millions you can do it with a bag of diamonds and even it out with gold. Sounds practical to me.

Your answer still leaves me with questions. Could the problem with diamonds have more to do with fluctuation of value?

Probably nations could but a lot of factors go into the value of a diamond, and people on the street don't have the same faith in it because the average person can test weight etc of gold, but not 'quality and clarity and cut' of diamonds.....mostly, though, it is because people have ALWAYS considered gold money so it will trade as such, and diamonds don't. Call it 'tradition' or call it 'what works for thousands of years'. Gold is money.

[Sweman]

Probably nations could but a lot of factors go into the value of a diamond, and people on the street don't have the same faith in it because the average person can test weight etc of gold, but not 'quality and clarity and cut' of diamonds.....mostly, though, it is because people have ALWAYS considered gold money so it will trade as such, and diamonds don't. Call it 'tradition' or call it 'what works for thousands of years'. Gold is money.
So gold is simply more reliable as a keeper of value. I figured there was a trust issue there somewhere

[Napoleon's Shadow]

Diamonds are not as scarce as people think they are. DeBeers has warehouses full of diamonds. But they only release 1 diamond per 1 forcasted marriage each year to keep their artificial scarcity high.

[Dr.3D]

Diamonds are not as scarce as people think they are. DeBeers has warehouses full of diamonds. But they only release 1 diamond per 1 forcasted marriage each year to keep their artificial scarcity high.

I've heard that being said as well.

[Working Poor]

We have the technology to make diamonds. People still haven't found the Philosopher's Stone.

Because the Philosopher's Stone is the heart of a righteous man