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The video link below MUST be watched by all, as it
PROVES unequivocally what I have shouted all along, that Alan Greenspan was
not only a charlatan who sold his soul for power, but, contrary to his public
statements, was well aware that he was destroying the fabric of America
through his 20-years of unchecked, accelerated money-printing.
As a young man in the 1960s, he was an enlightened
student of history, writing the following in his famous treatise, “Gold
and Economic Freedom” in 1966.
"In the absence of the gold standard, there is no way to protect
savings from confiscation through inflation. … This is the shabby
secret of the welfare statists’ tirades against gold. Deficit spending
is simply a scheme for the confiscation of wealth. Gold stands in the way of
this insidious process. It stands as a protector of property rights. If one
grasps this, one has no difficulty in understanding the statists’
antagonism toward the gold standard."
Of course, when he became Fed Chairman in 1987, he
suddenly espoused the virtues of Central Banking, fiat (unbacked)
money, and the lack of efficacy of a gold standard currency system,
consequently ushering in America’s age of long-term “Quantitative
Easing” to try and prevent the U.S., or any other country for that
matter, from ever having an economic contraction.
By the time he left the Fed chairmanship in the
hands of his far less capable successor, Ben Bernanke, in 2006, the national debt had risen from roughly $2
trillion to $5 trillion (a 4.6% CAGR), M2 Money Supply had risen from nearly
$3 trillion to $7 trillion (a 4.5% CAGR – see a connection?), and of
course over the counter financial derivatives started from ZERO on their
inexorable rise to become the ultimate “weapons of financial
destruction.”
In a famous 1999 speech, Greenspan stated that
“derivatives -- contracts that derive their value from an underlying
stock, commodity or financial instrument -- have helped create wealth and
improve standards of living by better allowing companies and financial
markets to spread and manage risk.” By the time he left office in
2006, the total notional value of all outstanding derivatives had risen to nearly
$400 trillion, and the die was cast for big money center banks to inject
cancerous poison continually into America, leading to its imminent demise as
a global economic power.
The derivatives explosion not only DID NOT spread
risk or improve standards of living, but ultimately led to the economic
meltdown that started in 2008 and continues today. The only reason
there is even a semblance of normality in America right now, at least on Wall
Street but certainly not Main Street (where unemployment, foreclosures, bankruptcies
and consumer, municipal, and Federal debt are at all-time highs), is due to
the exponential increase in money printing to attempt to buy more time, at
the expense of the future.
And don’t forget the manipulation of all
financial markets, particularly the U.S. stock market, Treasury Bond market,
currency market, and of course the gold and silver markets. The only
U.S. markets that are truly freely traded, in my view, are the agricultural
commodities, which as a group have not only reached an all-time high this
week, but even pulled the CCI Commodity Index to an all-time high YESTERDAY,
despite oil still being 33% below its 2008 highs! And trust me TPTB
would love to control these (paper) markets as well, but unfortunately for
them food inventories are harder to mask with fudged accounting than gold
inventories (although current supply shortages, particularly in the silver
market, are starting to make headlines).
Back to my last point, “Helicopter Ben”,
for all the (justified) criticism of his QE monetary policy, is making the
choice that any politician in his place would make;
as Richard Russell has so eloquently put it for the past decade
– “INFLATE OR DIE.” Any attempt to reign in credit,
or even slow the rate of increase (not to mention forcing banks to adhere to
REAL accounting rules), will certainly cause a
complete collapse in the U.S. financial system immediately.
Which is why not only have interest rates been kept
at zero for two years (only for big banks, of course), but that same national
debt has since risen from $5 trillion in 2006 to $14 trillion today (an
astounding 22.3% CAGR), not including $100 trillion or so of unfunded future
liabilities and several trillions of “off balance sheet” debt,
and the M2 Money Supply has risen from the aforementioned $7 trillion to
nearly $9 trillion (a 5.0% CAGR). Of course, publication of the
most comprehensive measure of the U.S. Money Supply, M3, was mysteriously
discontinued in 2006 under the guise of saving $1.5 million of annual
production costs! This measure ballooned from $4 trillion to $10
trillion under Greenspan’s watch (a 4.7% CAGR), but by private
estimates has since risen under Bernanke’s five-year reign of terror to
nearly $15 trillion, for an astounding CAGR of 8.5%.
But don’t worry the
government says the “core CPI” rose by just 1.5% last year
– there is no inflation!
And as for the total notional value of derivatives; despite having destroyed the financial system
(think AIG), they have been allowed to continue growing exponentially.
Per above, this value was around $400 trillion when Greenspan left office in
2006, but rose to more than $1.1 QUADRILLION in 2008 (a 65% CAGR!), although
I have not been able to find an accurate figure for where they stand as we
speak.
To summarize, the key point of this missive is that
Alan Greenspan, the “Maestro” who somehow, even today, is revered
for having “saved the economy” numerous times via unfettered
money-printing throughout his 19-year tenure as Fed Chairman, knew from the
day he walked into office that what he was doing was not only wrong but
horribly destructive.
But now that he and his spawn, the U.S.
“QE” based monetary system, near the end of their lives, he is desperately trying to change history’s
perception of the horrific policies he promulgated in the name of power and
prestige.
At the end of this short video, “Mr. Paper
Money” states that he “strongly supports” a gold standard!
http://www.youtube.com/watch?v=yRJs5yL62BA
Pretty soon even the masses will be calling for the
same.
Watch the price of rigged markets like gold and U.S.
Treasuries as they break their chains of manipulation. But more
importantly, watch the hyperinflation of the few markets that are NOT
manipulated, particularly agricultural commodities like corn, wheat, soy
beans, cattle, coffee, cocoa, FCOJ (for those of you that saw “Trading
Places” with Eddie Murphy), and rice.
PROTECT YOURSELF!
NOW!
Andrew Hoffman
Andrew Hoffman was a buy-side and sell-side analyst in the United
States (including six years as an II-ranked oilfield service analyst at
Salomon Smith Barney), but since 2002 his focus has been entirely in the
metals markets, principally gold and silver. He has worked as a consultant to
junior mining companies, head of Corporate Development and VP of Investor
Relations for different mining ventures.
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