Are you kidding me a man that ran the FED is now saying we should go back to the gold standard. So let me get this straight. The head of the FED who previous to taking that position, believed in the gold standard, changed his position while in office, and now has changed back!
Just more proof to me that when you are in service of the elite you do what they say when in power but when you are not you say what is true. This is proof that the elite CONTROL the FED officials when they are in power, OR ELSE?
Let’s remember Kennedy and Lincoln wanted the gold standard, we know how those stories ended!
Read on for Greenspan’s rationalization for the gold standard. My question why didn’t you do this when in office? Afraid of an elite hit on you? The elite run this country to their advantage and until we rebel ,and I mean seriously rebel. nothing will change.
Fake news, liberal media control, Trump bashing will all continue until we stand up and say some expletives, demonstrate and stop paying our taxes. They can’t put us ALL in jail. The unfortunate thing is too many people are sheeple and buy into everything they hear and see and don’t have the guts to do what is right for this country! Read on for further hypocrisy!
(courtesy of zerohedge.com)
Q. Although gold is not an official currency, it plays an important role in the monetary system. What role do you think gold should play in the new geopolitical environment
The gold standard was operating at its peak in the late 19th and early 20th centuries, a period of extraordinary global prosperity, characterized by firming productivity growth and very little inflation.
Today, there is a widespread view that the 19th century gold standard didn’t work. I think that’s like wearing the wrong size shoes and saying the shoes are uncomfortable! It wasn’t the gold standard that failed; it was politics. World War I disabled the fixed exchange rate parities and no country wanted to be exposed to the humiliation of having a lesser exchange rate against the US dollar than it enjoyed in 1913.
Britain, for example, chose to return to the gold standard in 1925 at the same exchange rate it had in 1913 relative to the US dollar (US$4.86 per pound sterling). That was a monumental error by Winston Churchill, then Chancellor of the Exchequer. It induced a severe deflation for Britain in the late 1920s, and the Bank of England had to default in 1931. It wasn’t the gold standard that wasn’t functioning; it was these pre-war parities that didn’t work. All wanted to return to pre-war exchange rate parities, which, given the different degree of war and economic destruction from country to country, rendered this desire, in general, wholly unreal
Today, going back on to the gold standard would be perceived as an act of desperation. But if the gold standard were in place today we would not have reached the situation in which we now find ourselves. We cannot afford to spend on infrastructure in the way that we should. The US sorely needs it, and it would pay for itself eventually in the form of a better economic environment (infrastructure). But few of such benefits would be reflected in private cash flow to repay debt. Much such infrastructure would have to be funded with government debt. We are already in danger of seeing the ratio of federal debt to GDP edging toward triple digits. We would never have reached this position of extreme indebtedness were we on the gold standard, because the gold standard is a way of ensuring that fiscal policy never gets out of line.