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Alan Greenspan Blows My Mind

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  • Fri, Nov 07, 2014 - 09:59pm

    #1

    Adam Taggart

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    Alan Greenspan Blows My Mind

Holy #$U#@!!

Alan Greenspan, central banker extraordinaire, believes gold is money — and not only that, but that "no fiat currency, including the dollar, can match it":

According to Zero Hedge, these gold-supportive comments were removed from the official transcript of his recent interview with the Council of Foreign Relations.

Part of me is thrilled to have the truth spoken so directly by such a titanic figure of the establishment.

The other part of me is royally pissed. Where was this commentary when he was running the Fed, this man whose policies (and those of his successors) have been more damaging to fair and true price discovery for the precious metals than anything else in all of history?

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  • Fri, Nov 07, 2014 - 11:12pm

    #2
    macro2682

    macro2682

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    Gold

Who controls the largest mining companies? Lots of mines were built based on $1200+ gold prices.  Perhaps some entity is pushing prices down to suffocate these higher cost providers into foreclosing on their mining assets?  Forcing a consolidation…  

The last time a world order / currency system died, the US collected massive stockpiles of gold in order to link it to the US dollar for strength and control over the global financial system.

How would a global entity do the same thing today on a larger scale?  Confiscation from individuals wouldn't work today, but confiscation from corporations might.  

Step 1.) Allow a practice bubble in gold during a low interest rate environment to entice corporations to borrow money to explore and build up mining infrastructure that is reliant upon higher gold prices for solvency.

Step 2.) Artificially crash prices using the futures market to choke out these weaker players.  Forcing foreclosure of assets to the lenders.

Step 3.) Allow gold to revalue back to all time highs, now that the banks own all the production.

 

Stretch?

 

 

 

  • Fri, Nov 07, 2014 - 11:47pm

    #3
    Thetallestmanonearth

    Thetallestmanonearth

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    When a snake tells you the

When a snake tells you the thing that you're about to eat is good for you, you need to step back and reconsider.  What's the angle here?

  • Fri, Nov 07, 2014 - 11:49pm

    #4

    SingleSpeak

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    OMG what’s next?

Is Bernie Madoff going to call for stricter SEC and FINRA enforcement?indecision

SS

  • Sat, Nov 08, 2014 - 12:26am

    #5

    pinecarr

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    When a snake tells you …

When a snake tells you the thing that you're about to eat is good for you, you need to step back and reconsider.  What's the angle here?
 
Maybe he/they hope that the current buyers of physical might come to the same conclusion and be scared away?
 
If nothing else, I do agree with the snake part!  (The commentors on ZH have some even more choice words for Greenspan and his recent remarks).

 

 

 

 

  • Sat, Nov 08, 2014 - 01:22am

    #6
    macro2682

    macro2682

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    Talking his book

He's on the private side now.  He's just talking up his book.  Their fund must have just gone long.

  • Sat, Nov 08, 2014 - 02:09am

    #7

    Mark_BC

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    Greatest farce in history of academia

Talking the talk now to save his reputation before he dies.

So the Keynesians forever believed that to create wealth you need to force people into financial repression via debt slavery and then twiddle with monetary and fiscal policy to get them to want to consume more stuff. This creates demand for production which provides jobs for the "producers" of said stuff, and everyone wins! Gold has no place in that!

Now apparently that fairy tale is being discovered to be wrong! Imagine that, a bunch of economists who never spent a day in their lives learning about natural sciences, yet somehow believing they have the capacity to develop sound hypotheses and policies to manage the world economy, the most powerful people in the world, now they see the error in their ways! Halleluja!

Now it's time to move back to way we should be managing economies, the way we should have been doing it all along if it weren't for those darned Keynesians corrupting everyone — we should be using sound money. And Alan Greenspan is going to lead the pack over to the conversion, told'yaso'ing Bernanke et al all the way! Thanks for your wonderful insights Alan! Instead, now the road to prosperity comes from latching onto a totally different fairy tale called "Austrian Economics" which involves letting people just do what they want to do so that true supply and demand forces can determine prices which then allows people to develop industry where it is needed! That is where wealth comes from! Suppliers responding to real demand! And it all comes down to using gold for money. Producers "producing' stuff according to what Adam Smith said centuries ago before anyone understood how production processes happen.

Wealth doesn't come from plants, no no nooooo. Now, economists are telling us that wealth comes from a gold based monetary system. But for the last half century wealth didn't come from gold. Wealth came from debt. Now the laws of the universe have changed once again, like a polar magnetic flip, and we are back to wealth coming from gold. Thanks for the update and putting that straight, economists.

Seriously, I cannot believe that in the history of the world there was a time when the people running society were so totally intellectually incompetent. Maybe a few thousand years ago when everyone believed the world was flat and the center of the universe, maybe then the establishment was more out to lunch. Oh wait, Greenspan still believes he is the center of the universe, doesn't he.

  • Sat, Nov 08, 2014 - 02:57am

    #8
    bwh1214

    bwh1214

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    Theory

I certainly concede that Alan Greenspan may have sold his sole after taking the reigns at the fed and is now attempting to buy it back. He may now be making an attempt to rewrite what will soon be an infamous legacy, but I wanted thoughts on an alternate theory.

Maybe he never lost his belief in sound money, but knew he could get his nation a lot of prosperity essentially for free. Under his direction the US may have gotten value for pieces of paper or computer digits all the while positioning the US to be in a good position when it falls apart. 

When looked at from an individuals perspective is it more likely a man would turn his back on his strongest beliefs mid life only to re-embrace his roots in twilight. Or that he always maintained those beliefs.

I don't necessarily subscribe to this but wanted to get some thoughts. His writing in early life would fit right in on peak prosperity, obviously his latest comments as well, I think it's a possibility he never changed.

 

thanks

 

  • Sat, Nov 08, 2014 - 03:16am

    #9

    Mark_BC

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    But bwh1214 what would make

But bwh1214 what would make him think America would be better positioned when it falls apart? Surely he must have known how all paper empires end. The US will fare worse than any other country when this ends.

  • Sat, Nov 08, 2014 - 04:40am

    #10

    Arthur Robey

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    Gold as Fiat.

I really don't get this "gold is money" thing. It is money because we all agree it is money. It is held that it is valuable because it is scarce, but how many atoms in an ounce of gold? It is not scarce at all. You cannot print gold but it can be valued up, which to my way of thinking is making more money.

As an example: If two people were on a desert island with one palm tree and an ounce of gold- how much would the ounce of gold be worth? One coconut? Two?

If the coconut tree produced only one nut not two, then the value of the nut would go up relative to the value of the gold.

The gold is worth the inverse of whatever the coconut tree was producing, I guess. And our civilization can certainly overproduce- for now at least.

And then there is Mitsubishi transmuting calcium into all sorts of elements.

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