The issue of REAL money (Gold and Silver) is so important to me. It seems as though no one talks about the federal reserve debasing our currency and therefore our savings. Here is what Alan Greenspan said about inflation and Gold before his inflation days at the FED.
"The law of supply and demand is not to be conned. As the supply of money increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy’s books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion.
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."
Alan Greenspan, “Gold and Economic Freedom,”
Capitalism: The Unknown Ideal, 101.
"The law of supply and demand is not to be conned. As the supply of money increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy’s books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion.
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."
Alan Greenspan, “Gold and Economic Freedom,”
Capitalism: The Unknown Ideal, 101.
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