Paul: Do you think gold is money?
It’s not money?
It’s a precious metal.
Even if it has been money for 6,000 years, somebody reversed that and eliminated that economic law?
Well, it’s an asset. Would you say Treasury bills are money? I don’t think they’re money either, but they’re a financial asset.
Why do central banks hold it?
Well, it’s a form of reserves.
Why don’t they hold diamonds?
Well it’s tradition — long-term tradition.
Well, some people still think it’s money.
What is Money?
Money is a medium of exchange.
Money is a unit of account.
Money is a store of value.
Gold and silver have been used more as money, by more people, for longer periods, throughout history than any other form of money ever devised my man.
Perhaps Bernanke should read the Article 1 Section 10 of the U.S. Constitution.
Read Manufactured Prosperity to learn more about what money is and how the Federal Reserve has been instrumental in destroying it.