Alan Greenspan Urges Return to Gold Standard

How come every nation can't just print paper money and hand it out to everyone so they can all go buy enough food, clothes, housing and automobiles to get along?

You would be amazed at the number of people who will just look at you with a bewildered look when you ask them that.

Most of us have NO IDEA how the Federal Reserve and the Central Banks of the world "create" money out of thin air!  They don't even bother printing it into paper because most of our financial transactions are all done electronically anyway.

But we know that trillions of dollars, yen, Euros and pounds have been created in these past 8 years.  It's called MONETARY EASING.

Today we find that Alan Greenspan is warning us that a crisis has been made and that our fabricated money might end up causing us some real problems.

Alan Greenspan, the former Chairman of the Federal Reserve has warned that Brexit was a “terrible outcome in all respects” and that we are in the “early days of a crisis.” U.K. policy makers miscalculated and made a “terrible mistake” in holding a referendum on whether to quit the European Union, Greenspan said.

That decision led to a “terrible outcome in all respects,” Greenspan, said in an interview with Bloomberg Surveillance yesterday in Washington.

“It didn’t have to happen,” Greenspan said. He warned that it is now likely that Scotland, whose majority of voters wanted to stay in the EU, will have another referendum on its own independence. He predicted such a vote would be successful, and Northern Ireland would “probably” go the same way.

He also warned about the massive entitlements and unfunded liabilities in the U.S. and western world. The U.S. national debt is heading rapidly towards $19 trillion but the U.S. also has unfunded liabilities estimated to be between $100 trillion and $200 trillion.

“The issue is essentially that entitlements are legal issues. They have nothing to do with economics. You reach a certain age or you are ill or something of that nature and you are entitled to certain expenditures out of the budget without any reference to how it’s going to be funded. Where the productivity levels are now, we are lucky to get something even close to two percent annual growth rate. That annual growth rate of two percent is not adequate to finance the existing needs.”

“I don’t know how it’s going to resolve, but there’s going to be a crisis.”

He warns that the crisis will likely lead to inflation:

“I know if you look at human history, there are times and times again where we thought that there was no inflation and everything was just going fine. And I just basically say, wait. This is not the way this thing ordinarily comes up. I don’t know. I cannot say I see it on the horizon. In fact, commodity prices are soggy. The oil prices has had a terrific impact on global inflation. It’s not about to emerge quickly, but I would not be surprised to see the next unexpected move to be on the inflation side. You don’t have inflation now. And you don’t have it until it happens.”

Finally, Greenspan advocates a return to the gold standard as a way to create financial, economic and monetary stability:

“If we went back on the gold standard and we adhered to the actual structure of the gold standard as it exited prior to 1913, we’d be fine. Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we’ve had in the United States, and that was a golden period of the gold standard. I’m known as a gold bug and everyone laughs at me, but why do central banks own gold now?”

Here;  http://www.zerohedge.com/news/2016-06-28/greenspan-warns-%E2%80%9Cearly-days-crisis%E2%80%9D-inflation-coming-and-urges-return-gold-standard

We have an idea that the global bankers of Western civilization will never be able to go back to the gold-standard.  They simply will never be able to wean themselves of the ease of which they "create" money to spend simply by turning on the printing press or creating $000's on their laptops.  If they were forced with being audited to prove they had enough gold in the vault to back up every "gold note" they had printed...they would be totally confined and couldn't keep up with all the social-spending promises they have made.

We have another idea that China has been buying gold by the hundreds of tons these past few years because they are getting pretty sick of London, New York and Brussels calling all the financial shots for the world.  We have an idea that China is putting together something that may very well challenge the USA and other Western banks as the world's RESERVE CURRENCY.

If this is all confusing to you...think about it like this.  Would you rather have in your hand a $100 bill from Venezuela or USA?  USA because Venezuela is collapsing and very few people even WANT a $100 bill from Venezuela because you can't buy a carton of eggs with it.

Now fast forward 5 years from now.  America has fallen into the trap of hyper-inflation and a $100 bill is falling in purchasing power every day and no longer buys lunch at McDonalds.  Plus it is falling fast every week.  Meanwhile, China has come out with a new currency that they PROVE is backed by gold sitting in their vault.

Which one are you going to want to hold for your future?  Which one would you have the most confidence in?

What will happen to America if we no longer have the confidence of the world at our backs lining up to buy our bonds and currency?  What will happen to America if she can no longer refinance $19 trillion of Treasury Bonds while selling $1 trillion per year of Treasury Bonds to finance our annual deficit?

"But Dennis, that could never happen here.  This is America!"

While people are saying "America!, Peace! and Safety!....destruction will come upon them suddenly.