by Larry Levin
Former Chairman of the Federal Reserve Alan-Bubbles-Greenspan; the man who drowned the world in “liquidity” (read: EZ money for banksters) in 1987; the man who drowned the world in “liquidity” (read: EZ money for banksters) because of a fictitious Y2K fear; the man who drowned the world in “liquidity” (read: EZ money for banksters) after the Nasdaq bubble popped; the man who drowned the world in “liquidity” (read: EZ money for banksters) to purposefully blow a housing bubble has had a change of heart.
This blowhard now says that’s bad policy. EZ-Al says a gold standard is needed to keep central bankers from printing too much money. No, this is NOT a joke.
I might get really worked up over this so I’ll let Tyler Durden take it from here… http://www.zerohedge.com/article/stunner-gold-standard-fully-supported-alan-greenspan
“You read that right. After such establishment ‘luminaries’ as World Bank president Robert Zoellick, Warren Buffett's father Howard, Jim Grant, and, most recently, Kansas Fed president Thomas Hoenig, all voiced their support for a return to a gold standard, the most recent addition to the motley group of contrite voodoo shamans is none other than the man who is single handedly responsible for America's addiction to cheap toxic credit, who spawned such destroyers of the middle class as the current Chaircreature, and who currently is the chief advisor in John Paulson's crusade to gobble up every ounce of deliverable physical in the world: former Fed Chairman - Alan Greenspan!
“In an interview with Fox Business, the man who refuses to go away into that good night: ‘We have at this particular stage a fiat money which is essentially money printed by a government and it's usually a central bank which is authorized to do so. Some mechanism has got to be in place that restricts the amount of money which is produced, either a gold standard or a currency board, because unless you do that all of history suggest that inflation will take hold with very deleterious effects on economic activity... There are numbers of us, myself included, who strongly believe that we did very well in the 1870 to 1914 period with an international gold standard.’
“And a further stunner: Greenspan himself wonders if we really need a central bank. Now our only question: why couldn't the maestro speak as clearly and coherently during his tenure which resulted in our current near-terminal financial state? And as a reminder, courtesy of Dylan Grice, if and when we do get a return to a gold standard there would be a need to re-index the monetary base to a real time equivalent price of gold, putting the price of the precious metal at about $6,300: ‘The US owns nearly 263m troy ounces of gold (the world's biggest holder) while the Fed's monetary base is $1.7 trillion. So the price of gold at which the US dollars would be fully gold-backed is currently around $6,300.’ And here you have people worried about day trading volatility...”
I’m not sure about the final thought of $6,300/oz of gold, but the Greenspan quotes are priceless. I guess now that the banking cabal is not alternating whispers of sweet-nothings (you’re so great Al) and demands for more money (cut the interest rate NOW Al) he can think clearly.
Former Chairman of the Federal Reserve Alan-Bubbles-Greenspan; the man who drowned the world in “liquidity” (read: EZ money for banksters) in 1987; the man who drowned the world in “liquidity” (read: EZ money for banksters) because of a fictitious Y2K fear; the man who drowned the world in “liquidity” (read: EZ money for banksters) after the Nasdaq bubble popped; the man who drowned the world in “liquidity” (read: EZ money for banksters) to purposefully blow a housing bubble has had a change of heart.
This blowhard now says that’s bad policy. EZ-Al says a gold standard is needed to keep central bankers from printing too much money. No, this is NOT a joke.
I might get really worked up over this so I’ll let Tyler Durden take it from here… http://www.zerohedge.com/article/stunner-gold-standard-fully-supported-alan-greenspan
“You read that right. After such establishment ‘luminaries’ as World Bank president Robert Zoellick, Warren Buffett's father Howard, Jim Grant, and, most recently, Kansas Fed president Thomas Hoenig, all voiced their support for a return to a gold standard, the most recent addition to the motley group of contrite voodoo shamans is none other than the man who is single handedly responsible for America's addiction to cheap toxic credit, who spawned such destroyers of the middle class as the current Chaircreature, and who currently is the chief advisor in John Paulson's crusade to gobble up every ounce of deliverable physical in the world: former Fed Chairman - Alan Greenspan!
“In an interview with Fox Business, the man who refuses to go away into that good night: ‘We have at this particular stage a fiat money which is essentially money printed by a government and it's usually a central bank which is authorized to do so. Some mechanism has got to be in place that restricts the amount of money which is produced, either a gold standard or a currency board, because unless you do that all of history suggest that inflation will take hold with very deleterious effects on economic activity... There are numbers of us, myself included, who strongly believe that we did very well in the 1870 to 1914 period with an international gold standard.’
“And a further stunner: Greenspan himself wonders if we really need a central bank. Now our only question: why couldn't the maestro speak as clearly and coherently during his tenure which resulted in our current near-terminal financial state? And as a reminder, courtesy of Dylan Grice, if and when we do get a return to a gold standard there would be a need to re-index the monetary base to a real time equivalent price of gold, putting the price of the precious metal at about $6,300: ‘The US owns nearly 263m troy ounces of gold (the world's biggest holder) while the Fed's monetary base is $1.7 trillion. So the price of gold at which the US dollars would be fully gold-backed is currently around $6,300.’ And here you have people worried about day trading volatility...”
I’m not sure about the final thought of $6,300/oz of gold, but the Greenspan quotes are priceless. I guess now that the banking cabal is not alternating whispers of sweet-nothings (you’re so great Al) and demands for more money (cut the interest rate NOW Al) he can think clearly.
Trade Date: 1/21/11
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