Yoda is at it Again!
Alan Greenspan was on Fox Business Network recently pitching his book and looking back at his career as the Federal Reserve Chairman, defending his actions and blaming the current situation on everyone and anyone but him.
Then he closed the interview with the following:
Fox: “So why do we need a central bank?”
Greenspan: “Well, the question is a very interesting one. We have, at this particular stage, a fiat money, which is essentially money printed by a government, and it's usually the central bank which is authorized to do so. Some mechanism has got to be in place that restricts the amount of money which is produced, either a gold standard or currency board or something of that nature, because unless you do that, all of history suggests that inflation will take hold with very deleterious effects on economic activity...There are numbers of us, myself included, who strongly believe that we did very well in the 1870-1914 period with an international gold standard.”
Fox: “We did well without the Federal Reserve. People forget that.”
But he also says in the interview that the housing and credit crunch, the upswing in commodities, and inflationary pressures were NOT a result of his lowering rates down to 1%, jerking them back up, and jerking them down again and cranking printing presses at the Fed, but rather a delayed reaction to the Fall of the Berlin Wall and the Soviet System. !@#$!@#!$%$ What? If anything, this should have brought commodity prices DOWN since the former Soviet countries hold some of the most lucrative mineral and energy mines and fields, in addition to being the #2 producer of many agricultural products, including wheat! He says that the decrease in rates was merely a coincidence.
Let's see, US government coming out of recession, new consumers and goods coming to market, need to stoke the fires of economic growth? Don't all of those signs usually lead to a decrease in rates? Oh, and he is not the cause for the printing presses running either. There was no mechanism for him to stop. !@$@@$@#! He WAS the mechanism by being the Chairman of the Federal Reserve, the MOST POWERFUL CENTRAL BANK IN THE WORLD!!!!
Oh, and by the way, the Dow is was back up over 13,000 this morning after dropping 218 points yesterday. At its high, the Dow was up 120 points. It has since given back almost all of its gains.
Notes from the Underground:
Dow - 12,959.75 +1.31
Gold - 792.90 +16.10
Silver - 14.136 EVEN
Oil - 97.18 +2.54
Patrick
Then he closed the interview with the following:
Fox: “So why do we need a central bank?”
Greenspan: “Well, the question is a very interesting one. We have, at this particular stage, a fiat money, which is essentially money printed by a government, and it's usually the central bank which is authorized to do so. Some mechanism has got to be in place that restricts the amount of money which is produced, either a gold standard or currency board or something of that nature, because unless you do that, all of history suggests that inflation will take hold with very deleterious effects on economic activity...There are numbers of us, myself included, who strongly believe that we did very well in the 1870-1914 period with an international gold standard.”
Fox: “We did well without the Federal Reserve. People forget that.”
But he also says in the interview that the housing and credit crunch, the upswing in commodities, and inflationary pressures were NOT a result of his lowering rates down to 1%, jerking them back up, and jerking them down again and cranking printing presses at the Fed, but rather a delayed reaction to the Fall of the Berlin Wall and the Soviet System. !@#$!@#!$%$ What? If anything, this should have brought commodity prices DOWN since the former Soviet countries hold some of the most lucrative mineral and energy mines and fields, in addition to being the #2 producer of many agricultural products, including wheat! He says that the decrease in rates was merely a coincidence.
Let's see, US government coming out of recession, new consumers and goods coming to market, need to stoke the fires of economic growth? Don't all of those signs usually lead to a decrease in rates? Oh, and he is not the cause for the printing presses running either. There was no mechanism for him to stop. !@$@@$@#! He WAS the mechanism by being the Chairman of the Federal Reserve, the MOST POWERFUL CENTRAL BANK IN THE WORLD!!!!
Oh, and by the way, the Dow is was back up over 13,000 this morning after dropping 218 points yesterday. At its high, the Dow was up 120 points. It has since given back almost all of its gains.
Notes from the Underground:
Dow - 12,959.75 +1.31
Gold - 792.90 +16.10
Silver - 14.136 EVEN
Oil - 97.18 +2.54
Patrick
Labels: Central Bank, Federal Reserve
posted by Dusan at
6:48 AM
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