Stunner: Gold Standard Fully Supported By... Alan Greenspan!?
Submitted by Tyler Durden on 01/21/2011 11:58 -0500
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 othe than the man who is singlehandedly 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? (finn: because he would have been thrown from a building). 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 reindex 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...
h/t Mike Krieger
Et Tu, Alan?
This news really should surprise no one when it comes to Alan Greenspan…….let us go back in time…..
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists' tirades against gold. 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. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.”
This was written by Greenspan in 1966. The original article is here……LINK
I assure you all that Central Banks of the world are fully aware of the history of fiat money and how it all ends (badly).
There IS a plan B and there always has been. All that’s happening in the world right now is countries jockeying for position, wealthy bankers and business owners and Central Banks themselves all buying gold. There are discussions on how the world’s debts will be handled, etc., etc…
A new monetary system IS being created as I type. You can count on it. The question is, ARE YOU READY? Will you be a participant or a bystander, waiting for another job?
I have long been of the opinion that between history and the actions of the government and the comings and goings of the Central Banks, the bankers, the actions on the COMEX and a myriad of other happenings were a direct telegraph to thinking men that a new standard was coming and that they should prepare. There is one thing they did not count on though: the internet.
Since the invention of the internet there have been a number of sites, articles, writers and analysts who have all tried to get this story out to regular people.
Also, since the invention of the internet there have been a number of different mechanisms to get ordinary people to NOT buy physical metals. Stocks of shell companies that do not exist, certificates that promise a portion of future production, derivatives, gold and silver pools, ETF’s and the biggest fraud of all, futures contracts.
Regarding the price of gold and it’s price under a gold standard, it would depend on the monetary measurement metric you used. M0, M1, M2, M3….. I’ve seen numbers bandied about anywhere from $5,000 to $53,000 to $100,000 an ounce.
The evidence is all around you. You will not be able to look back in time and say you were not aware. No one could possibly be that blind. Besides, you all have me tormenting you. Relentlessly, but only because I wish you the best. Most of you!!! LOL.
Gold Price Today Closed at $1256.20 Up $8.60 or 0.7%
11 hours ago