Greenspan's Ominous Shift

https://wealthcycles.com/blog/2010/09/17/greenspans-ominous-shift


Greenspan's Ominous Shift
Michael Maloney's picture

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Michael Maloney

We have been alluding to former Federal Reserve Chairman Alan Greenspan’s coming full circle to once again embrace gold as the ultimate asset class. As Chair of the Fed, Greenspan manipulated the U.S. economy through his control of fiat currency. But after his retirement, he is once again embracing gold as money and as the best investment.

However, we have yet to hear the confirmation from the horse’s mouth—until now. In a meeting in front of the Council on Foreign Relations, Alan Greenspan warned central bankers that they should be paying attention to gold, saying:
“Fiat money has no place to go but gold. If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it.”

Those words should ring loud and clear: “Fiat money has not place to go but gold.” 2010 marks the first time in over 20 years that central banks will be net buyers of gold. The last time that central banks made the switch from net sellers to net buyers was in the late 1970’s, which marked the early days of the massive gold rush that culminated in 1980.

And when a former Fed Chairman is saying it, it means that the collective mindset will soon be turning.

Peter Schiff Video Blog June 20, 2010 - Greenspan Op-Ed, RMB Dollar peg

Sir Alan Greenspan "US May Soon Reach It's Borrowing Limit"

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aga_wkgMEfDo
By Jacob Greber

June 18 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said the U.S. may soon face higher borrowing costs on its swelling debt and called for a “tectonic shift” in fiscal policy to contain borrowing.

“Perceptions of a large U.S. borrowing capacity are misleading,” and current long-term bond yields are masking America’s debt challenge, Greenspan wrote in an opinion piece posted on the Wall Street Journal’s website Click Here. “Long-term rate increases can emerge with unexpected suddenness,” such as the 4 percentage point surge over four months in 1979-80, he said.

Greenspan rebutted “misplaced” concern that reducing the deficit would put the economic recovery in danger, entering a debate among global policy makers about how quickly to exit from stimulus measures adopted during the financial crisis. U.S. Treasury Secretary Timothy F. Geithner said this month that while fiscal tightening is needed over the “medium term,” governments must reinforce the recovery in private demand.

“The United States, and most of the rest of the developed world, is in need of a tectonic shift in fiscal policy,” said Greenspan, 84, who served at the Fed’s helm from 1987 to 2006. “Incremental change will not be adequate.”


click here to finish reading the whole article on Bloomberg

click here for Greenspan's recent Op-Ed piece in the Wall Street Journal