Greenspan's Gold Price "Lightbulb"
The gold price continues to gather more and more publicity. Why? No rocket science here. It's going up. And it just broke through it's previous high. So it's ready to take center stage - at least for the time being.
Of course this "new high" stuff isn't new after all. Gold famously reached around 850 in 1980. Then it tanked for, oh, about 20 years. The tanking stopped eventually and the gold price began rising again in earnest in 2001.
Now, with the latest rise in the gold price, we get Alan Greenspan weighing in. (You remember him, don't you? He was the Chairman of the Federal Reserve Board before Ben Bernanke, the current chairman. Ah, how quickly you forget!)
Anyway, Greenspan, since he retired from being Chairman of the Federal Reserve, has been giving lots of speeches, wrote a book (whose title escapes me at the moment) and was hired by PIMCO, the world's largest bond manager, as...let's see, ahhh...some sort of...of...well, some sort of public relations position (I guess).
Now he's come out and said this about the recent rise in the gold price: "'What is fascinating is the extent to which gold still holds reign over the financial system as the ultimate source of payment."
Now, let's see, why is that "fascinating"? Gold has served as the ultimate store of value and real money for centuries. So Greenspan's "fascinated" that gold has continued to behave as it has for hundreds, even thousands of years? Fascinated?
Well, no matter. After all, the man didn't really ever make much sense when he was hailed by all as "The Maestro." You remember how he would make those discombobulated comments from his ivory tower and everyone would nod their heads in amazement at the man's brilliance. You remember that, don't you?
So now he's weighing in with more of his incredible insights. Only (far as I can tell) not that many people are listening. And if they're listening, they're not wagging their heads the way they used to.
Poor Alan. It looks like he's going to have to come up either with something really original. The days when he could just raise his maestro's baton and expect the orchestra to start playing are long gone. He may be waving his baton, but no one's playing. The musician's have all gone home. Even the audience looks pretty thin out there.
But putting aside Mr. Greenspan, it does look like the gold price is telling us something - no Alan Greenspan interpretations needed, thank you.
Of course this "new high" stuff isn't new after all. Gold famously reached around 850 in 1980. Then it tanked for, oh, about 20 years. The tanking stopped eventually and the gold price began rising again in earnest in 2001.
Now, with the latest rise in the gold price, we get Alan Greenspan weighing in. (You remember him, don't you? He was the Chairman of the Federal Reserve Board before Ben Bernanke, the current chairman. Ah, how quickly you forget!)
Anyway, Greenspan, since he retired from being Chairman of the Federal Reserve, has been giving lots of speeches, wrote a book (whose title escapes me at the moment) and was hired by PIMCO, the world's largest bond manager, as...let's see, ahhh...some sort of...of...well, some sort of public relations position (I guess).
Now he's come out and said this about the recent rise in the gold price: "'What is fascinating is the extent to which gold still holds reign over the financial system as the ultimate source of payment."
Now, let's see, why is that "fascinating"? Gold has served as the ultimate store of value and real money for centuries. So Greenspan's "fascinated" that gold has continued to behave as it has for hundreds, even thousands of years? Fascinated?
Well, no matter. After all, the man didn't really ever make much sense when he was hailed by all as "The Maestro." You remember how he would make those discombobulated comments from his ivory tower and everyone would nod their heads in amazement at the man's brilliance. You remember that, don't you?
So now he's weighing in with more of his incredible insights. Only (far as I can tell) not that many people are listening. And if they're listening, they're not wagging their heads the way they used to.
Poor Alan. It looks like he's going to have to come up either with something really original. The days when he could just raise his maestro's baton and expect the orchestra to start playing are long gone. He may be waving his baton, but no one's playing. The musician's have all gone home. Even the audience looks pretty thin out there.
But putting aside Mr. Greenspan, it does look like the gold price is telling us something - no Alan Greenspan interpretations needed, thank you.
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