Reply #8: The Bell tolls [View All]

[slaveplanet]

I believe we're in an economic proxy war, with the EU(old Europe). And we're losing.

Say you're a foreign investor- dateline new years 2002/2003 If you had pulled out of dollers and put your funds into Euros you'd be sitting mighty pretty right about now.

Greenspan gave some warning:
INSIGHTS

A few days ago, on December 19, Alan Greenspan mentioned gold in a speech before the Economic Club of New York. His comments portrayed gold in a light from which our nation’s politicians have shied for over a generation. He began his speech by stating that, "Although the gold standard could hardly be portrayed as having produced a period of price tranquility, it was the case that the price level in 1929 was not much different, on net, from that of 1800. But in the two decades following the abandonment of the gold standard in 1933, the Consumer Price Index in the United States was doubled. And, in the four decades after that, prices quadrupled. Monetary policy, unleashed from the constraint of domestic gold convertibility, had allowed a persistent over-issuance of money".

Greenspan continued by stating that, "But the adverse consequences of excessive money growth for financial stability and economic performance provoked a backlash. Central banks were finally pressed to rein in over-issuance of money even at the cost of considerable economic disruption. By 1979, the need for drastic measures had become painfully evident in the United States. The Federal Reserve under the leadership of Paul Volcker with the support of both the Carter and Reagan Administrations, dramatically slowed the growth of money. Initially, the economy fell into recession and inflation receded. However, most important, when activity staged a vigorous recovery, the progress made in reducing inflation was largely preserved. By the end of the 1980's, the inflation climate was being altered dramatically".

This was the first public statement form a high U.S. political official in decades, that recognizes the importance of gold as a stabilizing force for a monetary system. The fact that Greenspan opened his speech with these words indicates the magnitude of importance that he placed upon the world hearing these words. He chose to begin his comments with this topic. He could have buried it within the text knowing that most people would have been confused, glazed over, and dazzled by his rhetoric by the time that he uttered the statement. He wanted people to hear him!-snip

-snip-This is a watershed event! Is Greenspan preparing us for an eventual reentry of gold into our monetary system? He is un-hedged in his comparison between 1800 and 1929 and the 60 years that followed. Under the gold standard prices were stable for 129 years, but rose eight-fold in the 6 decades after the discipline of gold was removed and the gold standard was abandoned. His later statement regarding the effects of the institution of monetary restraint after 1979 is also telling. His comments pertaining to the result that occurred, after the money growth slowed and the initial recession ended and the economy staged a vigorous recovery lead me to believe that he is tacitly recommending this action!-snip-


I think this event marked the exodus from the doller for investment purposes, at least among big monied foreigners, whom have taken Greenspan's advice and bought either gold or Euro's.
look at all the foreign entities who've announced the switch to backing the Euro as of late!

at the time of this gold was around $330/oz....

you'd be sitting pretty had you gone that route as well.

Of course all this would be for personal gain , and drives a stake right through our economic heart.