Contrary to Ben Bernanke, gold is money as a Zimbabwe miner to pay for equipment using gold instead of cash
Contrary to Ben Bernanke, gold is money as a Zimbabwe miner to pay for equipment using gold instead of cash by Ken Schortgen – Shotgun Economics
Many readers may remember a few years back when the former Chairman of the Federal Reserve Ben Bernanke told Congressman Ron Paul during a House testimony that gold is not money.
However since that time we have learned that much of what the central banks tell us is either deception or outright lies, as seen during an audit where the Fed actually printed money to bailout foreign banks and even multi-national corporations.
And with this being said, it appears that Chairman Bernanke’s assessment that gold is not money is also a fallacy as on Sept. 18, a Zimbabwe mining company is planning to use physical gold as payment for equipment to international suppliers in lieu of cash.
Metallon Corp. is considering paying mining-equipment suppliers in gold because a cash shortage in Zimbabwe is hampering its plan to expand output, Chief Executive Officer Mzi Khumalo said.
Zimbabwe, which abandoned its own currency in 2009 because of hyperinflation, has faced cash shortages for at least the past two years as businesses and individuals moved money offshore and the import bill increased after exports collapsed. The country’s biggest gold miner needs at least $400 million to buy new machinery and upgrade existing equipment as it targets a fourfold increase in production.
Metallon has held talks with equipment suppliers in South Africa and Canada, among other countries, Khumalo, 62, said in an interview at his home in the capital, Harare. Zimbabwean law enables the company to convert leases on claims around its four mines into special mining leases that can then be used to secure financing for its equipment purchases, he said.
“We can then enter agreements with banks, various financiers on the basis of gold-backed transactions,” Khumalo said. Suppliers will “get their payment in gold,” he said. – Bloomberg
Gold has been money to most of the world for thousands of years, and it has only been the last 47 which has seen the monetary system disengage from gold in favor of unbacked fiat currencies. But perhaps this could be changing quickly, especially if sovereign governments begin joining in with corporations like Metallon to once again bring stability to the world’s current debt based monetary system.