Oxymoron? Fed chairman supports gold standard!
April 27, 2001: Then-Federal Reserve Chairman Alan Greenspan’s own words – written in 1966 and supporting a gold-backed U.S. economy – were dredged up in a lawsuit charging that agency with manipulating and suppressing the price of gold.
“… Under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth,” he wrote. “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” for the dollar.
“This is the shabby secret of the welfare statists’ tirades against gold,” he wrote. “Deficit [government] spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.”
Despite his role as head of the very Fed his earlier analysis condemned, a congressional source told WorldNetDaily that Greenspan still agrees with the premise of his article in 2001.
An ounce of gold on April 27, 2001 was valued at $264. On April 24, 2017, the price of gold was about $1,277.