Lear Capital article finding: Greenspan's Warning on Gold

It’s been almost a month since I saw this article in the New York Sun. I have been reflecting on it in pretty deep fashion since I first read it. As reported in the article, economist David Malpass who was present at the Council of Foreign Relations in Washington, DC in mid September and listened to former Federal Reserve Chairman Alan Greenspan speak there. The article from the New York Sun is entitled Greenspan’s Warning on Gold. From the article:

“Alan Greenspan spoke at the Council on Foreign Relations earlier today, and what was his advice? That central bankers should be doing what these columns, among others, have been rattling on about, namely that they should be paying attention to gold. “Fiat money has no place to go but gold,” the former Fed chairman said at the Council, according to economist David Malpass, who quotes Mr. Greenspan in one of Mr. Malpass’ emails on the political economy. Mr. Malpass writes that the former chairman of the Federal Reserve’s board of governors was responding to a question in respect of why gold was hitting new highs.”

Malpass also reported that Greenspan said the following at the Council of Foreign Relations:

“Gold is the canary in the coal mine. It signals problems with respect to currency markets.”

Hmmm…. Let me get this straight. This is the same man (Greenspan) who all the way from 1987 until 2006 as the Fed Chairman was very difficult to understand. Now, he is as clear as back in 1966 in his essay Gold and Economic Freedom: "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”. And this: "Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process."

Looks to me like the 1966 Alan Greenspan is speaking louder than the 1987, the 1996 or the 2006 Alan Greenspan. You be the judge – but along the way, call Lear Capital for some physical gold!