Fed Chair Admits "Cash Is Not A Store Of Value"

Intended warning or unintended slip? After Alan Greenspan's confessional admission that

"Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it,"

we found it remarkable that during the Q&A after her speech today that Janet Yellen, when asked about negative rates, admitted that

"cash in not a very convenient store of value,"

seemingly hinting at Bernanke's helicopter and that there will be no deflation in The US ever...

http://www.zerohedge.com/news/2015-0...ot-store-value

Quote:

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Originally Posted by stoneFree

Intended warning or unintended slip? After Alan Greenspan's confessional admission that

"Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it,"

we found it remarkable that during the Q&A after her speech today that Janet Yellen, when asked about negative rates, admitted that

"cash in not a very convenient store of value,"

seemingly hinting at Bernanke's helicopter and that there will be no deflation in The US ever...

http://www.zerohedge.com/news/2015-0...ot-store-value

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Cash never was intended to be a store of value, in my opinion.

The invention of "bills of credit" was to serve as a circulating medium and to prevent hoarding of the circulating medium.

Specie is a far better store of value (although not perfect). Specie is still subject to the laws of supply and demand as well as circulation.

Perhaps cash was meant to represent value or for discharge/payment of debt rather than to 'store value'. It has a face value. The comments on that link seem insightful.

And the question is, why do central banks put money into an asset which has no rate of return, but cost of storage and insurance and everything else like that, why are they doing that? If you look at the data with a very few exceptions, all of the developed countries have gold reserves. Why?

"those who wanted to an international fiat currency which was embodied in John Maynard Keynes' construct of a banker, and he was there in 1944, holding forth with all of his prestige, but couldn't counter the fact that the United States dollar was convertible into gold and that was the major draw. Everyone wanted America's gold.

Comments like this always brings me back to the statement made like this..................

Greenspan: US Can Pay Any Debt It Has Because It Can Print Money To Pay It

https://www.youtube.com/watch?v=-_N0Cwg5iN4

Gold reserves of the united states - Pick one.