I was raising the question on the side with Governor Mullins of what would happen if the Treasury sold a little gold in this market.
ALAN GREENSPANThe need for values is inbred. Their content is not.
More Alan Greenspan Quotes
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In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.
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But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?
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I love to play tennis and golf, listen to music, watch baseball and root for the Redskins.
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In general, corruption tends to exist whenever governments have favors to extend, or something to sell.
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I have one other issue I’d like to throw on the table. I hesitate to do it, but let me tell you some of the issues that are involved here.
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I do not deny that many appear to have succeeded in a material way by cutting corners and by manipulating associates, both in their professional and in their personal lives.
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History demonstrates that participants in financial markets are susceptible to waves of optimism.
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While these tendencies were no doubt in train in the “old,” pre-1990s economy, they accelerated over the past decade as a number of technologies with their roots in the cumulative innovations of the past half-century began to yield dramatic economic returns.
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Well, you probably will always believe there should be laws against fraud, and I don’t think there is any need for a law against fraud.
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If we are dealing with psychology, then the thermometers one uses to measure it have an effect.
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The only effective regulation lies in the propensity of customers to choose alternatives, of investors to move their funds elsewhere and of labour to acquire technical skills’.
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Gold stands in the way of this insidious process. It stands as a protector of property rights.
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History has not dealt kindly with the aftermath of protracted periods of low risk premiums.
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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.
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It keeps interest rates lower than they otherwise would be and frees savings to finance increases in the capital stock, thereby boosting productivity and real incomes.
ALAN GREENSPAN






