Posted on 02/22/2015 8:13:01 PM PST by Jack Hydrazine
With the Federal Reserve printing trillions upon trillions of dollars to keep the economic system afloat, many investors and financial pundits have surmised that the fundamental economic problems facing the United States during the crash of 2008 have been resolved. Stocks are, after all, at historic highs.
But the insiders know different. And if there’s any single person out there who understands U.S. monetary policy and its long-term effects on domestic and global affairs it’s former Federal Reserve chairman Alan Greenspan. As the head of the world’s most powerful central bank for nearly two decades he’s privy to the insider conversations and government machinations that have brought us to where we are today.
Greenspan recently joined veteran resource analyst Brien Lundin at the New Orleans Investment Conference to share some of his thoughts. According to Lundin, the former Fed chairman made it clear that the central bank is facing a serious problem and one that will have significant ramifications in the future.
'We asked him where he thought the gold price will be in five years and he said “measurably higher.”
In private conversation I asked him about the outstanding debts… and that the debt load in the U.S. had gotten so great that there has to be some monetary depreciation. Specially he said that the era of quantitative easing and zero-interest rate policies by the Fed… we really cannot exit this without some significant market event… By that I interpret it being either a stock market crash or a prolonged recession, which would then engender another round of monetary reflation by the Fed.
He thinks something big is going to happen that we can’t get out of this era of money printing without some repercussions – and pretty severe ones – that gold will benefit from.'
Watch the full interview (at link):
f we are in fact staring a major market event in the face as Alan Greenspan proposes then wealth preservation should be a key tenet of any preparedness strategy going forward. Greenspan himself, somewhat ironically, was a gold bug and proponent of sound money prior to his appointment as the chairman of the Fed. And though he didn’t discuss it much during his tenure, he is now actively saying that we can expect to see gold markedly higher within the next five years.
His assessment is likely based on concerns over the U.S. dollar which will, as Lundin notes, more than likely suffer a currency devaluation at some point in the future.
"The end has to come at some point... If you look at a chart of the U.S. dollar index it has gone nearly parabolic in the last few months… In any market that is so one sided, that is accelerating so rapidly, that trend will end… it will most likely end in a fairly violent fashion."
And if gold rises as a result, so too will other resource assets in the energy and mining sectors. What it boils down to is that the assets that are necessary to keep our system operating will always have value, and that is especially true in a situation where the U.S. dollar happens to be crashing. Uranium , for example, powers one in five American homes, which means that it will always be a necessary resource, regardless of what the dollar does or doesn’t do. Lundin’s assessment is echoed by Uranium Energy Corp CEO Amir Adnani, who recently said we may well see a “resurgence” in the price of this and natural resources like gold.
The same can be said for oil and agriculture resources.
They will always have value, regardless of whether the dollar is strong or violently collapses under its own weight.
Thus, when we consider ways to preserve wealth and insulate ourselves from the coming destruction of our currency one must consider holding physical assets. For some that means stockpiling food and other supplies in anticipation of Greenspan’s market event that could adversely affect credit flows and delivery of essential goods. For others who may currently hold stocks, U.S. Treasurys, or cash, diversifying your portfolio with well managed resource-based companies will not only preserve wealth during currency volatility, but build it as the value of real, physical assets rises.
The man who is essentially the architect responsible for domestic monetary policy under four U.S. Presidents has now said that a significant market event will take place when the Fed is eventually forced to exit their monetary easing and zero-interest rate policies.
Are you prepared for that day?
We don’t have a real economy anymore. We pump them up with money for nothing until they explode, like the housing bubble, and like the stock market bubble we have created now. Debt, ...no worries, print more money. It’s free. Greenspan is as much to blame for this sack of crap as anyone, so he should know where it is going.
Isn’t the Sukkot around Sept. 28?
“we really cannot exit this without some significant market event”
Body Mortgages.
“It’s going to be interesting watching how the Fed goes about extracting itself from the position it now finds itself. Essentially, if they raise rates it’s going to cost the Fed a lot of cash flow and probably also cause a huge hit to their portfolio of long bonds as well. We could be talking hundreds of billions of dollars if rates just go back to 4-5% on the short end. In fact, I believe that’s one of the reasons that the Fed has dithered so long on raising rates. It is likely to cost them a lot of money when they do so.”
They have been frozen in place by stimulus and the federal debt. Had Obama balanced the budget (or at least tried), we would have had a sharp, nasty contraction and a lot of banks would have gone out of business. A lot of people would have lost their money.
But it would have been over by 2010 and our economy would be humming.
Instead, the fed can’t act because the debt and deficit are too big, the home sale market continues in the crapper and the banks and their derivatives all depend on mortgages not defaulting. Higher interest rates bring the whole house of cards down. There are one of two courses:
a. Obama just freezes in place and lets the R’s take the fall for what’s coming in 2016. The more likely course, in my opinion.
b. Obama brings about the crash during his term and will use the chaos, poverty and unrest that accompanies it and uses it to justify truly fundamental transformation.
I laughed my head off when I saw this article and the comments at ZH. They’ve cussed this guy and said he’s a know-nothing and/or evildoer for years but now he’s a genius and “he’s finally telling the truth”.
When you change 6 years of zero interest rate policy you will have a market event?
No kidding.
“and a lot of banks would have gone out of business. A lot of people would have lost their money”
..and a lot of big “insurance” co., “global funds”, AIG, etc.,
The plan is actually quite insidious:
1. Force by law (bribed lawn), forced body mortgages on every citizen.
2. Leverage, at will (double the tax/penalty, then triple, while simultaneously increasing leveraged premiums. Forced teir levels. Premiums paying for “nothing” (ie. “out of thin air.”)
3. “Innocent” contact made (”checking”-inspection), to verify information (could be birthdate, place of employment, papers verifying type of body mortgage/Exchange-registration etc., (”insurance”).
4. Wrong tier/type of coverage (body-mortgage)”discovered.”
5. Tier “bumped”, assigned to another tier/exchange/higher level PENALty. #6
6. Back assets owed.#7
7. Pay or Asset REAL-estate seizure #8
8. Assets sold to _________ (bank-insurance/ and/or govt.)or new asset pool bought by other buyer(s), foreign or otherwise.
All actions above taken to isolated the individual, to avoid being noticed.
And if there’s any single person out there who understands U.S. monetary policy and its long-term effects on domestic and global affairs it’s former Federal Reserve chairman Alan Greenspan.
...
I guess that means there is no single person out there who understands U.S. monetary policy.
Except for me of course. The operating theory of the FOMC, that increases in wages causes inflation is about as wrong as wrong can be, except maybe for the Global Warming Hoax.
You think you could explain that in English instead of disjointed conspirecese? My interest is genuinely piqued but otherwise it’s un-understandable.
Hmmmm....a double negative.
Does that mean it's derstandable?
Careful! You’re unhooking me from my gruntle! ;-)
Greenspan may be correct this time but that doesn’t change the fact he kept rates too accomodative for too long helping to lead to the crash of 08. He isn’t the brightest bulb out there.
It’s unclear to me whether anything the Fed does ever costs it’s anonymous members anything.
I think after or just before Obama leaves so they can lay the blame on the next President. I believe they are pulling out all the stops, straining at the seams to keep it all from bursting now, just when Obama is in the midst of planting mines all over America’s landscape.
Well, I'd say he, as Andrea Mitchell's husband, surely is not.
How were they resolved? Glass-Stegall has not been reinstated so banks can still gamble with customer's money. The "Bernanke Put" is still in effect, Derivatives are still based on nothing but Unicorn Farts and Fairy Dust and the Fed is still printing money faster than the donuts disappear at Rosie O'Donnell's favorite breakfast bar.
Oh yeah and Congress has spent more in the last few years than all the Congresses combined from the 20th Century back to the founding of the country.
The economy is based on nothing but Consumer spending and we have more people without work than anytime in the history of the country.
The bubble will pop. It is just a matter of when and how big the bang will be.
I got the sense he was trying to bolster the stagnant gold market...
That said, there doesn't seem to be any graceful way to return to "normal" and there will be pain. Then, we will discover how many trillions the big money players have managed to extract from the money-generation apparatus...
Buy ammo?
Rosh Hashanah is September 14th.
ooooooooooooooooooh crystal ball
DISMANTLE the FED
FAG
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