Alan Greenspan’s Stunning Admission: ‘Gold Is Currency; No Fiat Currency, Including The Dollar, Can Match It’

As I’ve said many times … Physical gold and silver is the money of the TPTB.


Greenspan’s Stunning Admission: “Gold Is Currency; No Fiat Currency, Including the Dollar, Can Match It” (ZeroHedge, Nov 7, 2014):

For some reason, the Council of Foreign Relations, where ex-Fed-Chief Alan Greenspan spoke last week, decided the following discussion should be left out of the official transcript. We can perhaps understand why… as Gillian Tett concludes, “comments like that will be turning you into a rock star amongst the gold bug community.”

Greenspan (Uncut):

TETT: Do you think that gold is currently a good investment?

GREENSPAN: Yes… Remember what we’re looking at. Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can macth it.

Which is missing from the official CFR transcript…

GREENSPAN: …remember, we had that first tapering discussion, we got a very strong market response. And then we reassured everybody to have no — remember, tapering is still (audio gap) of an agreement that the central banks have made — European central banks, I believe — about allocating their gold sales which occurred when gold prices were falling down (audio gap) has been renewed this year with a statement that gold serves a very important place in monetary reserves.

And the question is, why do central banks put money into an asset which has no rate of return, but cost of storage and insurance and everything else like that, why are they doing that? If you look at the data with a very few exceptions, all of the developed countries have gold reserves. Why?

TETT: I imagine right now, it’s because of a question mark hanging over the value of fiat currency, the credibility going forward.

GREENSPAN: Well, that’s what I’m getting at. Every time you get some really serious questions, the 50 percent of the gold price determination begins to move.

TETT: Right.

GREENSPAN: And I think it is fascinating and — I don’t know, is Benn Steil in the audience?

TETT: Yes.

GREENSPAN: There he is, OK. Before you read my book, go read Benn’s book. The reason is, you’ll find it fascinating on exactly this issue, because here you have the ultimate test at the Mount Washington Hotel in 1944 of the real intellectual debate between the — those who wanted to an international fiat currency which was embodied in John Maynard Keynes’ construct of a banker, and he was there in 1944, holding forth with all of his prestige, but couldn’t counter the fact that the United States dollar was convertible into gold and that was the major draw. Everyone wanted America’s gold. And I think that Benn really described that in extraordinarily useful terms, as far as I can see. Anyway, thank you.

TETT: Right. Well, I’m sure with comments like that, that will be turning you into a rock star amongst the gold bug community.

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As a reminder, here is Ben Bernanke putting people straight on Gold…

As we noted at the time,

Ron Paul asks the Bernanke if he thought gold was money. Bernanke almost swallows his tongue, stares blankly for a few seconds and then says, “no.”

Paul then asks why banks hold gold on their balance sheet?  Why not diamonds?  Bernanke says, “tradition, I suppose.” 

So let me get this straight, banks hold billions of dollars of an asset that pays no interest or dividends on their balance sheet for reasons of “tradition”.  nothing to do with anything else, just tradition.  uh, yea.  That must be it.

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4 thoughts on “Alan Greenspan’s Stunning Admission: ‘Gold Is Currency; No Fiat Currency, Including The Dollar, Can Match It’

  1. Alan Greenspan also pushed ARMs as the ideal form of mortgage debt……they would save the consumer thousands, and they would always be able to refinance to fixed rate if the rates start going up. Ask anyone with an ARM how many banks return their calls when they call for fixed rate loans……….

    Mortgages have tripled their rates so far this year……..my guess is the rotten greedy gut is invested in gold……..and wants to make another killing.

    What he says is always a lie.

  2. To Friend, Stanley: What are the chances there will ever be a Neuronburg trial to uncover the evil and corruption of Eric Holder, the current and past liar in chief, or any of them?
    The system is close to total collapse. It is like a perfect storm that has gone too far to avoid now. Fukushima, world economy, broken and poisoned food chain, poisoned water,…….I can go on, but I think you get the point. I wish Ms. Fleichmann the best of luck, but she might wake up dead before she gets to speak……….these people are as evil as were the Germans in the 1930s and 1940s.
    Good link, thanks for posting.
    And, friend at Infinite Unknown, thanks for allowing the links. Not all sites allow them.

  3. Dear Marilyn, when the likes of the Bush’s, Cheney, Rumsfeld, Rice, Bliar et al carry on unchallenged, and investigative reporters like Cooper, Breitbart, Hastings and author Clancy all die in mysterious circumstances, plus a full list of strange coincidental deaths of anyone associated with the Clintons, it becomes obvious we must now just wait for them to hang themselves.
    That is our ONLY hope, because anybody who stands up to challenge, is doomed to silence/ridicule/death.
    T is a pro!

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