Greenspan Warns A Crisis Is Imminent, Urges A Return To The Gold Standard

[DamianTV]

http://www.zerohedge.com/news/2016-0...-gold-standard

On Friday afternoon, after the shocking Brexit referendum, while being interviewed by CNBC Alan Greenspan stunned his hosts when he said that things are about as bad as he has ever seen.

"This is the worst period, I recall since I've been in public service. There's nothing like it, including the crisis — remember October 19th, 1987, when the Dow went down by a record amount 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect that will not go away. I'd love to find something positive to say."

Strangely enough, he was not refering to the British exodus but to America's own economic troubles.

...

Full article on link.

What do you think about Gold being Money now, Zippy? Or, should I say BEN?

[jllundqu]

If we went back on the gold standard and we adhered to the actual structure of the gold standard as it existed 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. Alan Greenspan 2016

RON PAUL = TOTAL AND COMPLETE VINDICATION

[DamianTV]

Ron Paul vs Bernanke: Is Gold Money? - July 13, 2011


Ugh, Bernanke turns my stomach every time I have to listen to his verbal diahhrea... The "is gold money" part is at 5 minutes in...

[angelatc]

http://www.zerohedge.com/news/2016-0...-gold-standard



Full article on link.

What do you think about Gold being Money now, Zippy? Or, should I say BEN?

Wow - this is so on target I can't believe I never thought of it:

We are running out of people. In other words, everyone is very pleased at the fact that the employment rate is rising. Well, statistics tell us that we need more and more people to produce less and less.

We are running out of people. In other words, everyone is very pleased at the fact that the employment rate is rising. Well, statistics tell us that we need more and more people to produce less and less.

[Brian4Liberty]

Wow - this is so on target I can't believe I never thought of it:

We are running out of people. In other words, everyone is very pleased at the fact that the employment rate is rising. Well, statistics tell us that we need more and more people to produce less and less.

He basically said the same thing years ago in one of his books, right after he left the Fed. It's all a big pyramid scheme, and it will eventually fail. To delay the failure, he advocated for massive immigration. Reduce labor costs to offset monetary inflation, hope to increase the tax base with more people. He didn't anticipate that the tax base could stagnate at the same time that population increased, made worse by entitlement/welfare cost increases. Central planners always fail due to unforeseen circumstances and unintended consequences.

[AZJoe]

"Eurozone which he defined as a truly “vulnerable institution,” primarily due to Greece’s inclusion in its structure. “Get Greece out. They’re a toxic liability ...

[Eurozone Crises] fundamentally it is not so much an issue of immigration, or even economics, but unsustainable welfare spending, or as Greenspan puts it, "entitlements. ...

And so what we have at this stage is stagnation. ... the money supply ... which has always been a critical indicator of inflation, is for the first time going up remarkably steadily 6 percent, 7 percent, almost a straight line. It's tilted up in the last several months. ... . The thing that we should be worrying about now ... is that this type of economic environment ends with inflation. Historically, fiat money has always ended up that way. ...

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. ..."

OMG. I am watching out for flying pigs right now.

Greenspan has always been brilliant, and understood the monetary policy, gold standard, fiat currency, and the consequences but he has refrained from speaking such direct truths for several decades until now.

[timosman]

Greenspan has always been brilliant, and understood the monetary policy, gold standard, fiat currency, and the consequences but he has refrained from speaking such direct truths for several decades until now.

Is he about to kick the bucket?

[Zippyjuan]

Greenspan said that slow growth or even stagnation is the likely economic problem of the future- not recession. http://www.marketwatch.com/story/ala...ope-2016-06-24

Behind the slowdown in income is the sharp drop in worker productivity, according to Greenspan. Governments have to cut entitlements to reflect this weakness, he said.

The biggest concern is not a recession, but stagnation, the former Fed chief said.

Today he called the referendum a "terrible mistake."

http://www.bloomberg.com/news/articl...ro-area-tested

U.K. policy makers miscalculated and made a “terrible mistake” in holding a referendum on whether to quit the European Union, in which voters opted to leave the bloc, former Federal Reserve Chairman Alan Greenspan said.

That decision led to a “terrible outcome in all respects,” Greenspan, 90, said in an interview with Bloomberg Surveillance on Monday in Washington. “It didn’t have to happen.”

Not fond of Greece being included.

Greenspan said he did not have sympathy for the idea that the U.K. would be better off outside the EU, despite the problems the bloc faces in a structure where countries with different economies and cultures share the same currency.

“The EU is fundamentally a very good idea,” Greenspan said. “It’s a free trade-zone structure, which we need an awful lot of, so that the choice of Britain to stay in the EU and yet out of the euro zone was, I thought, the most sensible action that could be taken.”

The U.K.’s decision to exit is a sign that the EU and euro zone need readjustment away from a model where northern nations are supporting those in the south, Greenspan said.

The euro zone is the truly “vulnerable institution,” Greenspan said, primarily due to Greece’s inclusion in its structure. “Get Greece out. They’re a toxic liability sitting in the middle of a very important economic zone.”

[oyarde]

Wow - this is so on target I can't believe I never thought of it:




We are running out of people. In other words, everyone is very pleased at the fact that the employment rate is rising. Well, statistics tell us that we need more and more people to produce less and less.

Yeah we are at permanent stagnation until the next down turn . Last time , the employment situation was worse than The Great Depression when at that time there were about 5 people for ea job . Last downturn there were 6 for ea job for a long time . Only 6 in 10 Americans work and that number will not rise. The tax revenue will not ever equal the budget so the debt is added to continually . The currency will become a crisis at some point , when I have no idea . This in the present form will not last forever.

[angelatc]

"Eurozone which he defined as a truly “vulnerable institution,” primarily due to Greece’s inclusion in its structure. “Get Greece out. They’re a toxic liability ...

[Eurozone Crises] fundamentally it is not so much an issue of immigration, or even economics, but unsustainable welfare spending, or as Greenspan puts it, "entitlements. ...

And so what we have at this stage is stagnation. ... the money supply ... which has always been a critical indicator of inflation, is for the first time going up remarkably steadily 6 percent, 7 percent, almost a straight line. It's tilted up in the last several months. ... . The thing that we should be worrying about now ... is that this type of economic environment ends with inflation. Historically, fiat money has always ended up that way. ...

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. ..."

OMG. I am watching out for flying pigs right now.
Greenspan has always been brilliant, and understood the monetary policy, gold standard, fiat currency, and the consequences but he has refrained from speaking such direct truths for several decades until now.

I always thought that he did the job he was hired to do, not the job he wanted to do.

[Brian4Liberty]

On Greenspan:

Referring in general to slow economic growth worldwide. http://www.marketwatch.com/story/ala...ope-2016-06-24 Growth is slow due several issues including slow increases in technology (meaning slower increases in productivity) and slower population growth.

Greenspan said that slow growth or even stagnation is the likely economic problem of the future- not recession. http://www.marketwatch.com/story/ala...ope-2016-06-24



Today he called the referendum a "terrible mistake."

http://www.bloomberg.com/news/articl...ro-area-tested
.

Well Zippy, first you say Greenspan wasn't saying Brexit was terrible, he was only talking about the recent global economy in general, now you say Greenspan was talking about Brexit. Which is it?

[P3ter_Griffin]

What does the gold standard during 'that the period 1870 to 1913' look like? From looking at the wiki I saw there was a coinage act of 1873. Not sure if this influences his 'start date'. And the most obvious thing in 1913 would be the creation of the fed, is this what provides his 'end date'? What was different about the gold standard prior to 1870 and after 1913 that made him select this time period?

[Carlybee]

Translation: Greenspan owns gold

[SilentBull]

Great time to make some money.

[oyarde]

What does the gold standard during 'that the period 1870 to 1913' look like? From looking at the wiki I saw there was a coinage act of 1873. Not sure if this influences his 'start date'. And the most obvious thing in 1913 would be the creation of the fed, is this what provides his 'end date'? What was different about the gold standard prior to 1870 and after 1913 that made him select this time period?

Coinage act of 1873 ended the production of 3 low denomination coins , ended bimetalism which ended the then current practice of the mint striking silver dollars free for bullion presented, gold dollars were still in production ( from 1875 to 1888 there were never 20k struck in one yr ). Basically from 1874 to 1878 ( 1878 first yr of Morgan dollar ) , no silver dollars were made except Trade Dollars which were intended for use overseas, domestic bank reserves in those days were held in bags of Half Dollars and gold coins . In California , gold dust and privately minted small denomination gold coins were still in use ( one dollar , halves and quarters)

[H. E. Panqui]

...lol!...the old puppet greedspawn urges 'return' to a 'gold standard' that never existed!!...

...[hint for goldbuggers: ...much less ludwig, more zarlenga....]

[Bern]

16 posts in and no one quoted the most hilarious words in the whole interview:

I’m known as a gold bug and everyone laughs at me, but why do central banks own gold now?

Tradition!

[oyarde]

What does the gold standard during 'that the period 1870 to 1913' look like? From looking at the wiki I saw there was a coinage act of 1873. Not sure if this influences his 'start date'. And the most obvious thing in 1913 would be the creation of the fed, is this what provides his 'end date'? What was different about the gold standard prior to 1870 and after 1913 that made him select this time period?

Then , of course there was The Panic of 1873.

[Zippyjuan]

Then , of course there was The Panic of 1873.

Also the recession of 1882- 1885.
The recession of 1887–88
The recession of 1890–91
The panic of 1893
The panic of 1896
The recession of 1899–1900
The recession of 1902–04
The panic of 1907
The panic of 1910- 1911

https://en.wikipedia.org/wiki/List_o..._United_States

[oyarde]

Also the recession of 1882- 1885.
The recession of 1887–88
The recession of 1890–91
The panic of 1893
The panic of 1896
The recession of 1899–1900
The recession of 1902–04
The panic of 1907
The panic of 1910- 1911

https://en.wikipedia.org/wiki/List_o..._United_States

And the great Plains Blizzards of 1873 , '86 , '88

[oyarde]

Also the recession of 1882- 1885.
The recession of 1887–88
The recession of 1890–91
The panic of 1893
The panic of 1896
The recession of 1899–1900
The recession of 1902–04
The panic of 1907
The panic of 1910- 1911

https://en.wikipedia.org/wiki/List_o..._United_States

The panic of 1893 resulted in a lot of valuable low mintage coins today, all of the 1893 dollars ( P ,S , CC , O & 1894 P ), the 1893 S half dollar and quarter , 1893 O dime.

[oyarde]

100 yr.'s before the Panic of 1873 , it took a week to follow the old Buffalo Trace from the Falls of the Ohio ( Louisville ) to where it came out on the Wabash ( Vincennes ) to cross to the land of the Illini , and white people were using Spanish silver coins for money .

[Ronin Truth]

Having a sanity flashback there, Alan?