Tuesday, June 28, 2016

Former Fed Chairman Alan Greenspan says if we went back to a gold standard, the global monetary system would be fine

There is a new adage based off an old one that goes, in the land of negative interest rates, the one without yield is king.  This of course is a reference to our ongoing global fiat currency system that is now at $10 trillion in negative yields and counting, versus gold which intrinsically has no yield unto itself, but protects wealth by never losing purchasing power despite inflation or deflation.

And with the world's central banks at a nexus where they no longer have any options or solutions to stave off an oncoming liquidity and financial crisis, the architect of this system is changing his tune and advocating that the ONLY real solution, and answer to the world's monetary problems is a return to a gold standard.

Former Fed Chairman Alan Greenspan: "If we went back on the gold standard and we adhered to the actual structure of the gold standard as it exited prior to 1913, we'd be fine.  Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we've had in the United States, and that was a golden period of the gold standard.  I'm known as a gold bug and everyone laughs at me, but why do central banks own gold now?" - Zerohedge


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