Friday, July 19, 2013

Bernanke: "Nobody Really Understands Gold Prices"

The "Chairman of the Federal Reserve" says he doesn't understand gold prices? WHAT??? Then why does the FED have gold in reserve in the first place? Last time Bernanke was asked, why the FED has gold, he said it was "tradition." This sounds like a circus to me? How can someone in Bernanke's position admit that he doesn't understand gold prices when gold is held in reserve by almost every Central Bank in the world and he's head of the most powerful Central Bank in the world. He also says that gold doesn't protect against inflation very well, and he did it with a straight face too? I don't know where he lives but over the past ten+ years my price of energy related products and food has gone up, BIG TIME! Gasoline was about $0.40/L ten years ago, now it's $1.35/L, a loaf of bread went from $0.75 to $2.25. Since gold has gone up in the past ten+ years from about $250 to $1,280, I would say that's a pretty damn good inflation hedge. Who is Bernanke trying to kid? Is this some kind of joke? What's really going on at the FED? How can any chairman of a Central Bank admit this and have any credibility in the future? Please wake me up from this Alice in Wonderland Economy.   BK