Home / #Solutions / Former Federal Reserve Chairman Warns of Imminent Crisis — Urges Return to Gold Standard

Former Federal Reserve Chairman Warns of Imminent Crisis — Urges Return to Gold Standard

Federal Reserve Chairman

On Monday, Alan Greenspan, the former Chairman of the Federal Reserve from 1987 to 2006, dropped a bombshell that will both incite panic as well make people scratch their heads in disbelief.

Speaking on Bloomberg in an extensive 30-minute interview, Greenspan gave his assessment of Brexit. The former fed chair said David Cameron made a “terrible mistake” by even holding the referendum. Greenspan went on to explain that Brexit will inevitably lead to both Scotland and Northern Ireland declarations of independence as well.

“We are in very early days of a crisis which has got a way to go,” asserted Greenspan.

Today’s comments come after his already shocking assessment of Brexit on Friday, in which he said this was the worst situation he’s ever seen.

“This is the worst period, I recall since I’ve been in public service. There’s nothing like it, including the crisis — remember October 19th, 1987, when the Dow went down by a record amount 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect that will not go away. I’d love to find something positive to say.”

As if Greenspan’s predictions weren’t ominous enough, on Monday, he managed to top them. In his appraisal of the situation, Greenspan noted that unsustainable entitlement spending is eventually going to lead to a crisis.

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.

When asked if “we need an accident of history” to address this, as reported by ZeroHedge, Greenspan replied, “Probably. In the United States, social benefits, which is the more generic term, or entitlements, are considered the third rail of American politics.  You touch them and you lose.  Now, that is a general view.  Republicans don’t want to touch it.  Democrats don’t want to touch it.  They don’t even want to talk about.  This is what the election should be all about in the United States.  You will never hear one word from either side.”

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After calling out the establishment on entitlement spending, Greenspan went on to unmask the false recovery narrative as perpetuated by Washington. He then warned that “the fundamental issue is the fact that productivity growth has ground to a halt.” 

We are running out of people. In other words, everyone is very pleased at the fact that the employment rate is rising. Well, statistics tell us that we need more and more people to produce less and less. That is not a prescription for a viable political system. And so what we have at this stage is stagnation. I don’t think that there is anything out there which suggests that there is a recession, but I don’t know that. What I do know is that the money supply, and too, which has always been a critical indicator of inflation, is for the first time going up remarkably steadily 6 percent, 7 percent, almost a straight line. It’s tilted up in the last several months. It’s added a percentage point or two. The thing that we should be worrying about now, which we have actually given no thought to whatsoever, is that this type of economic environment ends with inflation. Historically, fiat money has always ended up that way.

After echoing the eerily similar sentiment of Ron Paul, Greenspan warned of hyperinflation.

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 have 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.

ZeroHedge aptly points out that Greenspan ignores his own role in the creation of the boom-bust cycle which has doomed the world to series of ever more destructive bubbles and ultimately, hyperinflation which will likely be unleashed once the helicopter money inevitably arrives. In retrospect, the 90-year-old, who clearly is looking forward not backward, has a simple solution: the gold standard.

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?

Ironically, what Greenspan is referencing in 1913 still plays a devastating role in the current state of global economic affairs today. Immediately after the passage of the Federal Reserve Act of 1913, Congress reassigned the responsibility To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures, otherwise known as Article 1, Section 8 of the Consitution, to the Federal Reserve.

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The Fed quickly became a fourth branch of the federal government, only an entirely unaccountable and secret one. The newly created central bank began acting as a single point of controlling authority, setting interest rates for inter-bank lending and regulating the supply of money in circulation — setting of a chain reaction that has led us to the crisis we find ourselves in today.

  • jw

    while i agree we need to cut entitlements i dont believe he’s talking about corporate welfare. thats the entitlement that needs to go, no social services ha he seems o be alluding to. it makes me sick to hear social security an ”entitlement..” its not an enitlement when you pay for it. screw greenspan

    • anna miller

      Remember what George Carlin said about social security? How can this weazle of a human being, Greenspan, talk about social security, while he and his crowd pushed legislation that now allows a miniscule number of humans to OWN all the wealth? How does this pile of crap not get dressed down, on the spot? It sures goes to tell you who owns this nation, now doesn’t it? 3 minutes, We miss you George!
      https://www.youtube.com/watch?v=Tt8_0MHo7-0

  • anna miller

    Now this is rich.

    “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.”
    Yes 1913, the year Greenspans buddies, the Rothschilds and Warburgs, finally got their way and created the Federal Reserve, .after how many tries? Also the year that the push for a one-world-government kicked into high gear. The elite banks should have been allowed to fail in 2008. This is afterall, a capitalist nation. It would have been painful, but we would have been well on the way toward healing our nation. Instead we bailed the psychopaths out. And they proceeded to pump fiat money into an already sick financial realm. Our congress did nothing to address the problems either.
    Our so-called free mainstream media did nothing to bring attention to the root of the problem.
    So now the criminals want to use Brexit, a natural, grass-roots effort by the people to exit from world government, as a method of punishment: see look what happens when you get off the teat of globalism. They might just allow the entire house of cards to fall and make it look like Brexit caused it to implode. Thereby sending a message via blackmail to the other Euro-nations to stay put. What devious….the only word is psychopaths. And that Greenspan, I don’t care if he is ninety years old, he should be in jail.

  • David

    Bernie Sanders Confronts Alan Greenspan
    https://www.youtube.com/watch?v=WJaW32ZTyKE

    And this was in 2003……

  • Bob Btme

    You can see these evil men that rule the world are VERY upset about the teeming masses needing the Social Security money back that the govt. extorted. And health care – Medicare of course. Not one WORD about military spending, the enormous gulag system, or corruption, subsidizing of giant oil, coal and gas companies.

    Nope, these guys are worried about having to pay for health care for the people that made them rich. They don’t even want to return the social security money they forcibly took from us.

    This attitude explains why they deter sex and reproduction among native-born Americans. We don’t pay for day care or child-leave in the workplace. We demonize child-bearing and pregancy among white people. The regime wants to replace white, native-born workers with illegal immigrants because they can be exploited much better. If they get hurt on the job, they just go back to Mexico. They’ll never use Medicare or Social Security. They can serve in the military as well, without even becoming citizens.

    You don’t have to worry about catching them with “drugs”, or cooking-up bullshit trespassing or loitering charges. Their very existence as a person in this country is illegal.

    • Brian King

      Thats actually not true its because they do the job better for less pay no one is discouraging you buffer whites from reproducing its actually black people and Mexicans who are discouraged from reproduction thats why planned parenthood has most of its clinics in the ghettos and barrios and they advertise to “minority” women scaring them out of having kids cus its too “expensive” or it will get in the way of there careers

    • Brian King

      Yea cus flagging my comment makes it false lol dumbass

      • Bob Btme

        easy big guy! I didn’t flag anything. Post away! I’m happy to read your writings.

        • Brian King

          Well it looked like you did cus my comment wouldn’t show

  • paulmckc

    Hilarious, 1913 the very same year the Federal Reserve was created, what does that tell you?

    LOL….

  • olde reb

    “How does the
    Federal Reserve steal billions daily from the U.S. government ?”
    you may ask. Let me make it simply. The FRBNY has exclusive control
    of the $8-10 trillion annually received from the auctions of Treasury
    securities. Ref. 31 CFR 375.3. The accounts are client
    accounts–not operating accounts. There are no reports or audits of
    the accounts given to Congress or the public. The profit of the Fed
    legally belongs to the government. Concealing and taking what
    belongs to the government is embezzling. Details below.

    *************************

    FEDERAL RESERVE
    SCAM

    The
    Federal Reserve system is used by the Wall Street bankers to conceal
    the theft of $6 billion daily using the FRBNY’s exclusive control of
    the accounts of auction funds of Treasury securities.
    They
    have successfully operated
    the scheme for 100 years.

    The
    FRBNY has
    exclusive control of disbursements of the auction accounts. Ref.
    31 CFR 375.3.
    Ref.

    http://www.scribd.com/doc/48194264/rip-off-by-the-Federal-Reserve-revised.

    The
    evidence that the Federal
    Reserve is diverting
    the money from the government
    using
    the above accounting
    scam
    is
    in plain sight for those who wish to see it:

    ONE:
    The FRBNY will only establish a line of credit for the government
    (book
    entry money)
    when
    they receive a Treasury security in the amount of the line
    of credit.

    TWO:
    The deficit
    security
    is sold as a small percentage on
    the auctioned roll-over
    securities.
    The
    FRBNY handles all of the accounts and disbursements. Ref. 31 CFR
    375.3. The accounts are client accounts (not operational accounts)
    and have never been audited. Audits
    of
    the FR are conducted according to guidelines established by the BOG.

    THREE:
    Funds from auctioning the deficit security issues (currently $2
    trillion annually, $6 billion daily) cannot go to the government. If
    they did, they would have to buy the securities just issued since no
    other securities have been purchased. Under those circumstances,
    there would be no increase in the money in circulation (inflation)
    nor would there be any increase in the national debt. The
    money from the auction must go somewhere but it cannot
    go to the government.

    FOUR:
    The only feasible destination for the funds is to members of the
    Primary Dealers who are tasked with collecting called and redeemed
    Treasury securities. As hidden owners of the corporate Board of
    Governors (privately owned corporations are not required to file
    records with the SEC), they can receive deficit spending profit along
    with funds for the roll-over security work. The owners have put up
    no consideration for receiving $6 billion daily, even thou it is
    touted as a loan. (If the non-existing loan was being paid off by
    the hidden money, it would then result is eliminating any increase in
    the National Debt. In addition, who, or what,is the source of the
    putative loan. The Fed does not have it.) (The operation of the BOG
    readily lends itself to a corporate structure; the FR System does
    not.)

    FIVE:
    Profit of the Federal Reserve legally belongs to the government.

    It
    is assumed the same profitable scam has been set up with the Euro
    with
    each nation pledging to guarantee payment on the securities sold by
    the ECB. The money from the sale of the securities is theorized,
    based upon the Federal Reserve documented scheme, to go to the
    controllers/owners
    of the ECB. Money
    from the above operations are
    theorized to
    fund the New World Order scheme.
    Ref.

    https://www.scribd.com/document/115919607/FUNDING-THE-NEW-WORLD-ORDER.

    Is
    any of this information of interest ?

    Jim
    Carter

    [email protected]