Uncle Sam heading closer to a fresh financial meltdown

"The man who brought us the global financial crisis, Alan Greenspan, has spoken out on how to fix the system. Of all the advice he might give, he has given the most unexpected. In essence, he has said: "Don't even try." "

www.smh.com.au...

The article also includes this claim - "In 10 days we will see the premiere of a movie of the Ayn Rand novel Atlas Shrugged. This cult 1957 novel is a warning against government intervention, a sermon on the virtues of laissez faire, and a reminder that Alan Greenspan was once a close acolyte of Rand and her Objectivist movement. Her 1966 book Capitalism: the Unknown Ideal included an essay by Greenspan on the virtue of the gold standard.

The young Greenspan advocated a return to a system where a government could only issue currency backed by a physical hard asset - gold. He wrote that "gold and economic freedom are inseparable". He derided the current system of fiat money, where a dollar is backed by nothing more than a government promise to honour its debts, as "paper reserves"."

Well, well..so what went wrong Mr Greenspan? Did GREED just get the better of you?

reply to post by Nonchalant


Greenspan's objectivist delusions convinced him that the "great men" of finance and industry were reasonable and responsible enough that they could grow wealth beyond the supply of hard assets like gold to back. He signed on with fiat money under the delusion that there would be some sort of integrity to the system, that A would always equal A, as it were.

You could actually watch his faith in humanity crumble during the economic meltdown over sub-prime mortgages and the psychotic derivatives market.

reply to post by Nonchalant


I know it sounds crazy, but in a strange way, and not the way greenspan intended, I'm sure, he's right. I think that the ideas of economic interventionism are flawed. It seems that governments and banks want to throw money at problems, but they end up selecting the wrong targets. If we ended significant portions of economic reform and oversight, including the FedResSys all together, the natural productivity and progress of the free market, every man for himself, may the best man win system might be able to flourish.

The Aussie Dollar is worth more than the green back.
So if i was and american i would back the Aussie dollar.