(N.Morgan) Alan Greenspan once said: “When gold is accepted as the medium of exchange by most or all nations, an unhampered free international gold standard serves to foster a world-wide division of labor and the broadest international trade. Even though the units of exchange (the dollar, the pound, the franc, etc.) differ from country to country, when all are defined in terms of gold the economies of the different countries act as one-so long as there are no restraints on trade or on the movement of capital.” From Gold And Economic Freedom,” 1966
Anyone actively involved in the financial markets during Greenspan’s tenure as Chairman of the Federal Reserve would be surprised to see that comment above coming from Greenspan.
He was known as the king of the printing press until his successor, Ben Bernanke took over the role of chief money and credit creator.
The Daily Coin stated it best: “While it might not show up in the Fed’s “M” accounts, which are various measures of the “money supply,” Greenspan’s Fed shepherded in an era of unprecedented growth in systemic debt – private and Government – and unprecedented decline in credit standards. By the end of Greenspan’s reign of monetary terror, anyone with no more than two nickels to rub together could qualify for a credit card or mortgage.”
The graph above illustrates the total debt outstanding system-wide in the U.S. during Greenspan’s Fed.
The level debt increased over 400%. GDP?
The real GDP is said to have grown about 85%, but this metric is overstated by the amount that the Government underestimates the true inflation rate and by faked changes to the GDP calculation for purposes of political expediency.
In this latest episode of the Shadow of Truth, the guys discuss the manipulation of gold, directly and targeted fake news reports about gold that are intended to kill people’s interest in buying gold.
Their analysis explains how gold is giving one of its strongest “buy” signals in the last 16 years: