Thursday, September 16, 2010

Greenspan and Gold

So the former FED chairman has been touting the merits of gold in the media recently. Now that he is retired, he can finally tell the truth. He is of the view that fiat currencies have no place to go but gold.

He has advised central banks to keep a close look on gold, and also influenced John Paulson, one of the star hedge fund managers, to start a gold fund which focuses on gold mining stocks and gold-related investments. 

Why is Greenspan in support of Gold now, but not back then when he was Fed chairman? Afterall, his policies were similar to Bernanke's policies. Low interest-rates, flood the economy with paper, easy money. He was the one who blew up the real estate bubble in 2007 when he tried to re-flate the economy from the dot com bubble burst back in the early 2000s.

It shouldn't be surprising that Greenspan recently made these gold-related comments. In fact, it gives credence to gold vs fiat currencies. Greenspan was once a supporter of the Gold Standard, but he had sold his soul to the Fed when he became chairman of the organisation in 1987. Noted investor, author and commentator Jim Rogers has claimed that Greenspan lobbied to get this chairmanship in his book Adventure Capitalist (It's a great read by the way).

It's too late, Mr. Greenspan. He has destroyed millions of lives and possibly an entire generation with his printing presses.
 
For me, being a central banker is one of the worst crimes in humanity.

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