“Capitalism, the Unknown Ideal”

Greenspan in “Capitalism, the Unknown Ideal”: “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. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

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.”

The article here: http://www.sagold.com/gildedopinion/greenspan.html

And, Greenspan yesterday: “Fiat money has no place to go but gold,” the former Fed chairman said at the Council… The American people, he asserted in his book, have for the most part “tolerated the inflation bias as an acceptable cost of the modern welfare state.”

http://www.nysun.com/editorials/greenspans-warning-on-gold/87080/

The key point is this: The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. That includes Gold.

http://seekingalpha.com/article/225579-congressmen-weiner-and-waxman-set-gold-hearing

Thanks to Brian for catching this scary Gold analysis.