08.31.12

The crazies go into action

Posted in Extremism, Fiat money fear and loathers at 2:23 pm by George Smith

Gold and silver prices twitched when Ben Bernanke indicated the Fed might try to help the economy …

The price of gold and other precious metals jumped Friday, after Federal Reserve Chairman Ben Bernanke made clear that he expects to take further action to try to boost the economy.

The Fed can try to prop up the economy by buying government bonds, lowering interest rates and other measures. Those moves can lead to inflation. And when investors believe inflation is coming, they often buy gold and other precious metals because they believe they are protections against inflation.

[Bernanke] stopped short of committing the Fed to any specific move. But he said that the central bank will do more, because unemployment is so high and the economic recovery “far from satisfactory.”

And the Paul Ryans, the near psychotic fans of Ludwig von Mises, the really nuts but wealthy members of the GOP, and the average suckers who pay attention to Glenn Beck recoiled and drove prices up.

Across the wires went the cry: They’re about to debase the currency again, curses on quantitative easing! Zim note! Paper money, ahhh.

We need to get back to sound money and precious metal coinage. When the fall comes all that will matter is gold.

You don’t have enough money to buy gold, anyway. You’d get ripped off. You even got took when you liquidated your jewelry at the pawn shop.

Meanwhile, in the real world, the consumer price index refuses to conform to the beliefs of charlatans, witches and goldbugs.

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