Sunday, July 10, 2016

Alan ‘Bubbles’ Greenspan Returns To Gold
5*
Bill Bonner essay begins with Greenspan's quote in 1966: "Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset… The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit." .. in other words, before joining the Federal Reserve, Alan Greenspan was a strong proponent of gold & the gold standard .. then he became the bubble marketeer while working at the Federal Reserve .. now again that he is no longer with the Federal Reserve, he is once again asserting the value of gold & a gold standard .. Bonner: "Now, Mr Greenspan is 90 years old. Either he feels the cold downdraft of the beckoning grave…or he is simply forgetting to mumble .. The Fed’s minutes from its last meeting reveal no intention to return to the gold standard. Instead, the Fed’s central planners want their photos on TIME, too. They can’t give up their control of the nation’s money or risk a correction .. Mr Greenspan might have said so, too…perhaps with a hidden, sly smile on his face."
LINK HERE to the essay

1 comment:

Anonymous said...

Paper currency is as much an asset as is gold at any given time. People need it to buy groceries.