1 vote

Gold=Money? Bernanke No, Greenspan Yes

Dateline August 25, 2011

Former Federal Reserve boss Alan Greenspan made headlines this week when he said gold is indeed a currency and noted that the euro was falling apart, contradicting top officials on both sides of the Atlantic.

“Gold, unlike all other commodities, is a currency,” he told attendees at a conference in Washington D.C. on August 23, saying he did not think the precious metal was in a bubble despite recently reaching a new record above $1900. And a flight to safety amid inflation fears is what’s causing soaring gold prices.

But Greenspan’s comments on gold — widely accepted among economists — fly in the face of recent statements made by current Fed chief Ben Bernanke. In mid-July, Congressman Ron Paul (R-Texas), the chairman of the House Subcommittee on Monetary Policy, asked Bernanke whether he thought gold is money.

“No,” Bernanke promptly responded, claiming that central banks held gold because of “tradition.”

The story:
http://thenewamerican.com/economy/markets-mainmenu-45/8742-g...



Trending on the Web