Quote of the day

"Last week Fed Chairman Bernanke raised eyebrows and denied history when he asserted in front of Congress that gold doesn't qualify as money. Yesterday [Tue 9th Aug] he took the unprecedented step of announcing that the Federal Reserve would keep interest rates near zero for at least the next two years. In very short order thereafter it required much more of the money that he believes in (U.S. dollars) to buy the money that he doesn't believe in (gold)."

Read the entire article here.  Personally, I don't think Bernanke and company are so deluded as to believe gold has no role as money.  Rather, they realize the power to control, manipulate and abuse it is beyond them... unlike the dollar, which is finally showing its utter mismanagement.

To use the famous economic preface, "all other things equal," an item with finite quantity will tend to have considerably more intrinsic value than one that can be multiplied at will.  Dollars are multiplying like rabbits under the Fed's loose monetary policy... that's why it takes an increasing amount of them to obtain "real" items, whether that's gold... or food.