Was Greenspan really as clueless as he claims he was? Let’s look at some recent history to find out…
The clues lie in an article written by a young Greenspan in 1966 for the Ayn Rand journal “The Objectivist”. ‘Gold and Economic Freedom’ gives a simple synopsis of banking practices and the need for a Gold standard. These days precious metal standards to limit lending/inflation of currencies are generally considered an antiquated concept, but back in 1966 the U.S. was still on a pseudo-Gold standard. The objectivist/libertarian nature of Greenspan’s article may raise some hackles, but, please just focus on the overall economic implications of what he says. Keep in mind that Greenspan continues to be a follower of Rand and has never repudiated his previous assertions. So here are some of the things Greenspan has to say about credit practices and interest rates…
