Loading ...Gold and emerging markets
No Western Central banker current or former will ever come out and make statement on gold. Including Alan Greenspan.
——————————————————————————————————
A Former Central Banker’s view on Gold
Dr Subbarao became Governor of the Reserve Bank of India (RBI) on 5 September, 2008. Less than two weeks later, Lehman Brothers collapsed, precipitating a global economic downturn not seen since the 1930s.
“If emerging markets cannot rely on the dollar as a guard against exchange rate instability, then we have to build our own defences. Holding gold within our reserves is an integral part of that self-defence,”
“it is clear that gold is a risk diversifier – a hedge against not just financial risk but also political risk. It is also a long-term store of wealth. As such central banks, especially those from emerging markets, can increasingly see the merits of adding gold to their reserves,”
“The truth was far simpler,” says Subbarao. “Gold is a good long-term investment and a reliable reserve asset.”
https://www.gold.org/goldhub/research/gold-investor/gold-and-emerging-markets
“The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. 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. Deficit 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. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.” ~ Alan Greenspan
Thanks I was looking for this statement.
The statement was in 1969 when he was un-corrupted by politics. While as FED chief he never uttered the word “gold” in his hearings to congress or during his tenure as FED chief. Always state the year of his statement besides his name.
Fair enough. More Alan Greenspan quotes about gold (with dates)…
https://www.americanbullion.com/8-eloquent-quotes-on-gold-by-alan-greenspan/
Thanks Homer.
I will take the other side of this
Since we went off the Gold Standard
Most everybody you and I know has a much better standard of living.
Prosperity has been rampant for decades in western societies.
All because we have been able to borrow for the things we want.
Do we really want to go back to a time where you only bought it if you had the money in the bank ?
Save up for a car and then save up for a house …and all the while live in a rented shack !
I know this is heresy here …but think about it
In a democratic society people vote for the handouts. You don’t get handouts in a Gold Standard Economy.
It’s a nice romantic idea but really Can’t happen .
Check the productivity pie divergence graph since the gold standard. Now consider household total hours worked and debt.
https://proxy.duckduckgo.com/iu/?u=https%3A%2F%2Fotb.cachefly.net%2Fwp-content%2Fuploads%2F2012%2F07%2Fwages-stagnate-productivity-grows-570×389.png&f=1&nofb=1
The chart just started to diverge just after in 1971 when US abandon gold standard. It takes decades to realize the effect of monetary shift. Global crack has begin to happen in form of inequality of wages.
World disagree with:”a much better standard of living.”
Most of fundamental base of sound foundation of today’s living standard (materialistic only) have been developed during Gold Standard period. to name the few:
Rail road system, Electrification of vast US land, Largest plant rated in in 1900 was single digit MW by 1970 plants were 1200 MW ( I worked in nuclear plant design), X-Ray, telecommunication telegraph, refrigeration/AC, washing and dryers (by 1970) market became replacement only/or new home building demands) Not to mention landing on the moon , NASA research produced most of the benefits.
R&D has nothing to do wih fiat money.
It is like “Blame the innocent (Gold Standard) and reward the guilty (Fiat money).
On 5th ave in NY Kushner owns 666 $1.6 billion building with loan he can not pay from income. He is sweating. But for a homeless man on the street appears he is very rich compared him.
Lastly it is the free society which allowed intellect mind to invent and produce products is what has done not the monetary system.
Mind is always dreaming and inventing regardless of monetary system.
Peace Fully.
Good thoughts everyone. Read about gold being good in the Bible. Genesis. At the beginning. Crooks will hurt us. I think trump will end the fed. Love it. Genesis 2v11 and 12. Stay informed. Trekker.