Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Alan Greenspan: Don’t Get Your Hopes Up for US Growth

  by    5   1

Back in the fall, former Federal Reserve Chairman Alan Greenspan stirred things up by making some public statements about the importance of gold, calling it “the premier currency, where no fiat currency, including the dollar, can match it…” Greenspan also indicated that he believes the Fed’s balance sheet will eventually catch fire and ignite some serious inflation. A good reason, he argued, to buy gold.

Well, now Greenspan is back in the news throwing a “wet blanket” on hopes for US growth, as Bloomberg puts it.

Screen Shot 2014-12-31 at 10.14.56 AM

The United States is doing better than anybody else, but we’re still not doing all that well… We still have a very sluggish economy.”

“Almost all of the weakness in the last four, five, six years has been in long-lived investments… Until these pick up, we’re not going to get the kind of vibrant growth that everyone is hoping for.”

These are just a sample of Greenspan’s comments to Bloomberg. He also does not have confidence that anyone can forecast the price of oil in 2015, because the market hasn’t stabilized yet.

So what is the takeaway for long-term investors trying to position themselves in the big picture of the world’s economy? You’ll want to read Greenspan’s article in the journal of Foreign Affairs published back in September. To Greenspan, there is little question that gold and China will play a central role in the years to come.

If China were to convert a relatively modest part of its $4 trillion foreign exchange reserves into gold, the country’s currency could take on unexpected strength in today’s international financial system. It would be a gamble, of course, for China to use part of its reserves to buy enough gold bullion to displace the United States from its position as the world’s largest holder of monetary gold. (As of spring 2014, U.S. holdings amounted to $328 billion.) But the penalty for being wrong, in terms of lost interest and the cost of storage, would be modest. For the rest of the world, gold prices would certainly rise, but only during the period of accumulation. They would likely fall back once China reached its goal.

“The broader issue — a return to the gold standard in any form — is nowhere on anybody’s horizon. It has few supporters in today’s virtually universal embrace of fiat currencies and floating exchange rates. Yet gold has special properties that no other currency, with the possible exception of silver, can claim. For more than two millennia, gold has had virtually unquestioned acceptance as payment. It has never required the credit guarantee of a third party. No questions are raised when gold or direct claims to gold are offered in payment of an obligation; it was the only form of payment, for example, that exporters to Germany would accept as World War II was drawing to a close. Today, the acceptance of fiat money — currency not backed by an asset of intrinsic value — rests on the credit guarantee of sovereign nations endowed with effective taxing power, a guarantee that in crisis conditions has not always matched the universal acceptability of gold.”

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Fed Balance Sheet Reduction Not Delivering as Promised

The Federal Reserve is all-in on the inflation fight. Or is it? While everybody focuses on interest rate cuts, the promised Fed balance sheet reduction isn’t going quite as promised.

READ MORE →

Record Consumer Debt Levels Continue to Climb

Consumers continue to add to their record level of debt as higher prices squeeze wallets. Americans added another $40.1 billion to the debt load in June, according to the latest data from the Federal Reserve. That represents a 10.5% year-on-year increase.

READ MORE →

Central Banks Added Gold at Faster Pace in June

Central bank gold buying notched up again in June. Central banks globally added 59 tons of gold to their reserves last month and there were no reported sales, according to the latest data compiled by the World Gold Council.

READ MORE →

Labor Market Showing Cracks as Job Openings Decline More Than Expected

Despite back-to-back contractions in GDP, President Joe Biden, Fed Chair Jerome Powell, Treasury Secretary Janet Yellen and all of their supporters in the corporate media insist the US economy isn’t in a recession. But the only data they ever point to in order to back up their assertion is the “strong” labor market. The problem […]

READ MORE →

Total Household Debt Hit a Record $16 Trillion in Q2

Personal income from all sources adjusted for inflation — real income — fell for the second straight month in June and was down 1% on the year. But American consumers continue to spend. How can this be? They’re running up debt at a dizzying pace. This undercuts the narrative claiming the American consumer is “healthy.”

READ MORE →

5 thoughts on “Alan Greenspan: Don’t Get Your Hopes Up for US Growth

  1. Robert Kauffman says:

    I used to have respect for Alan, until I heard him stating “the 1% pay option ARM” as a great way for Americans to take advantage of home ownership all the while keeping the Fed rate purposely low to facilitate the mortgage melt down. He is a federal reserve puppet with ulterior motives… Not good for America. IMHO (in my humble opinion)
    Don’t trust him.

  2. […] Alan Greenspan: Don’t Get Your Hopes Up for US Growth – Peter Schiff’s Gold News. […]

  3. There is nothing wrong what Greenspan said about gold,I don’t praise any growth for economys around the world and the USA especially,because to me there is a race to the bottom,to the graveyard and thats where the dollar will end up,history prooves that,he didn’t talk like that,so Greenspan gets a little credit for his stand on gold thats it,when he was chairman he was 2face he was with the cronies.

  4. Al says:

    Alan Greenspan purposely misled the public for his and his employer’s agenda ….. and now he comes clean!!!!! after reaping havoc

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now