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 GREENSPANSkilled shortages in America exist because we are shielding our skilled labor force from world competition. [Visa quotas] have been substituted for the wage pricing mechanism.
More Alan Greenspan Quotes
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There’s an interesting question here because if the gold price broke in that context, the thermometer would not be just a measuring tool. It would basically affect the underlying psychology.
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Revolutions are something you see only in retrospect.
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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 long argued that paying down the national debt is beneficial for the economy.
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Need to consider not only the most likely future path for the economy but also the distribution of possible outcomes about that path.
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We are in the midst of a once-in-a-century credit tsunami. Central banks and governments are being required to take unprecedented measures.
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I came to a stark realization: chronic surpluses could be almost as destabilizing as chronic deficits.
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If you think you understand what I am saying you do not understand what I am saying.
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The process of innovation is, of course, never ending.
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In an economy that already has lost some momentum, one must remain alert to the possibility that greater caution and weakening asset values in financial markets could signal or precipitate an excessive softening in household and business spending.
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Corruption, embezzlement, fraud, these are all characteristics which exist everywhere.
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History demonstrates that participants in financial markets are susceptible to waves of optimism.
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The problem is not lack of regulation but unrealistic expectations. What we confront in reality is uncertainty, some of it frighteningly so…
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Fiat money in extremis is accepted by nobody. Gold is always accepted.
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The guiding purpose of the government regulator is to prevent rather than to create something.
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Excessive optimism shows the seeds of its own reversal in the form of imbalances that tend to grow over time.
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An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions.
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Amateurs want to be right. Professionals want to make money.
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Gold still represents the ultimate form of payment in the world.
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Any informed borrower is simply less vulnerable to fraud and abuse.
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If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine.
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How do we know when irrational exuberance has unduly escalated asset values?
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We may be in a rapidly evolving international financial system with all the bells and whistles of the so-called new economy. But the old-economy rules of prudence are as formidable as ever. We violate them at our own peril.
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The number one problem in today’s generation and economy is the lack of financial literacy.
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Developing protectionism regarding trade and our reluctance to place fiscal policy on a more sustainable path are threatening what may well be our most valued policy asset.
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A decline in the national housing price level would need to be substantial to trigger a significant rise in foreclosures, because the vast majority of homeowners have built up substantial equity in their homes despite large mortgage.
ALAN GREENSPAN