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Greenspan backs the gold standard
Posted on 12 April 2009 with no comments from readers
This is what Alan Greenspan wrote in the 1960s: ‘This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.’ And here he is on Fox TV last year saying pretty much the same thing. Shame he forgot this while Chairman of the Fed!
Posted on 12 April 2009
Categories: Banking & Finance, Bond Markets, Global Economics, Gold & Silver, US Dollar, Video Channel
no Comments posted by readers:
@ Peter:
Thanks for posting this!
On 3 occasions over the past week, I posted info on Greenspan’s now-famous speech back in 1966. In the years since he penned this essay, Greenspan had partly backed away from those ideas (and as you stated, he ignored their implications when he was at the Fed) But now they look prescient.
In his commentary back then, he also said this:
“Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets . . . [but] in the absence of the gold standard … there is no safe store of value…
“Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.”
Rather prescient, wouldn’t you say? Here’s the full commentary, which is worth reading for your subscribers who may not know the link:
http://www.financialsense.com/metals/greenspan1966.html