Sales of “Atlas Shrugged” (by Ayn Rand) Soar in the Face of Economic Crisis (interviews as well/, page 7

Originally posted by smallpeeps

Greenspan on Gold 1966

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

Dr. Alan Greenspan 1966

Twenty years later (1986) this man was president of the Fed and if you look at the credit bubbles he built from that point forward, one must surely say that Dr. Greenspan is not speculating in regards to when and how governments will confiscate gold. I have spoken about Gold Cops on other forums and been ignored, but I see Greenspan as a genius and what he is saying in this statement is actually a dialectic plan for what he knows will work. Notice that his tale of the Great Depression mentions nothing political at all. Politics is not a part of the Doc's volcabulary but you can see he understands where all the levers are on this gumball machine called the "economy".

Now where is he? He's shrugging.

Oh no, I'm quoting my own crap!

But it's all for a good reason. I had to place Dr. A. Greenspan's words in easily observable form here. You read th part above about how Gold confiscation would be well, inevitable in certain cases?

Then why did the Doc create such a case, or at least he tried, eh? I like how he quotes innovation. Does he mean innovative inventors of free electricity machines or does he mean innovators of "financial products"? Hmm...

Alan_greenspan#cite_ref-56

"Innovation has brought about a multitude of new products, such as subprime loans and niche credit programs for immigrants. Such developments are representative of the market responses that have driven the financial services industry throughout the history of our country …
With these advances in technology, lenders have taken advantage of credit-scoring models and other techniques for efficiently extending credit to a broader spectrum of consumers. The widespread adoption of these models has reduced the costs of evaluating the creditworthiness of borrowers, and in competitive markets cost reductions tend to be passed through to borrowers. Where once more-marginal applicants would simply have been denied credit, lenders are now able to quite efficiently judge the risk posed by individual applicants and to price that risk appropriately. These improvements have led to rapid growth in subprime mortgage lending; indeed, today subprime mortgages account for roughly 10 percent of the number of all mortgages outstanding, up from just 1 or 2 percent in the early 1990s."

Dr. Alan Greenspan April 4, 2005

Well done sir, well done.

jsobecky: It is I who wins not due to debate but by having people like you with different views and open minds. I respect the ideas you present and please feel free to continue.

I have learned that we are all propagandists for our own worldview but usually we tend to adopt parts of others or even the whole she-bang thought up by someone else. ...Yet only by discussions such as this do we achieve a greater uncertainty and thereby drop the wrong ideas and refresh the new ideas we felt all along.

As someone great said, "I know I am not right anymore, and I know you are not right also, but we are now both confused about a greater and larger question and that is better than certainty."