End of the World is Cancelled


Source: Ken Klein, May 31, 2011
Posted here: Wednesday, June 1, 2011 @ 4:45 AM
Word count: 332

Alan Greenspan in 1966
Now that Harold Camping has discredited the whole world of prophecy, I have decided to hold off (who needs the negative back lash?), and do a much longer response later.
But here is something that was said about 40 years ago that is coming to pass right now. And one you can take to the bank, unless of course your bank has been closed.
As it turns out, the Chinese are not alone in understanding the true impact of money creation and deficit spending. Ironically, in an article published in 1966, Mr. Alan Greenspan (who later became one of the biggest money printers in history) had the following to say about deficit spending:

“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.”

Given the ridiculous debt overhang in the developed world (ie the United Sates) , the ongoing deficit spending programs, artificially low interest rates and the endless quantitative easing, we believe there is a genuine risk of very high inflation.
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