Guest Post: Atlas Just Shrugged

Tyler Durden's picture

Submitted by Adrian Douglas of GATA

Adtlas Just Shrugged

On September 15 former Federal Reserve Chairman Alan Greenspan made a speech to the Council on Foreign Relations. Some very interesting comments he made with respect to gold in response to a question were reported in an editorial in yesterday's New York Sun, "Greenspan's Warning on Gold":

On this occasion Greenspan, who has been famous for gobbledygook that leaves the audience guessing what he meant, did not mince his words. He said, "Fiat money has no place to go but gold."

He further commented that "if all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it."

Greenspan was a close friend of the writer Ayn Rand and he reportedly read drafts of her novel "Atlas Shrugged" before it was published and even had a letter published by The New York Times in November 1957 in response to the newspaper's negative review of the book. In 1966 Greenspan wrote an essay published in Rand's newsletter "The Objectivist" titled "Gold and Economic Freedom":

In that essay Greenspan declared:

"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. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

When one juxtaposes Greenspan's views from 1966 with those of 2010, it is clear that he has a good understanding of the central role gold plays in the monetary system and that unbacked fiat currency is intrinsically worthless. So one would have to conclude that between these two reference points, when Greenspan was Federal Reserve Chairman for 19 years, he knew he was part of an elaborate charade to continue the "shabby secret" of the welfare statists.

In a debate against GATA Chairman Bill Murphy in May 2010, CPM Group executive Jeffrey M. Christian declared that he has advised "most of the central banks in the world" and that "central banks think very little about gold, and those that do think about it and have gold reserves are happy when the gold price goes up.” (See

Perhaps most of the central banks Christian has advised were also successful in keeping this "shabby secret" from him. That is in stark contrast to GATA, which has been shining a light on the dark world of gold for more than 10 years and showing that the organization's officers and consultants are more knowledgeable about the gold market than any of the bought-and-paid-for anti-gold cartel apologists who purport to be experts.

I expect that in the days and years ahead the remark "Fiat money has no place to go but gold" will resound around the world and will be a stake through the heart of the blood-sucking vampire we call central banking. If you weren’t paying attention, you need to know that Atlas just shrugged.
Adrian Douglas is editor of the Market Force Analysis newsletter ( and a member of GATA's Board of Directors.

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DavidPierre's picture


Adrian Douglas and all the people of GATA, are SAGES.


At least CBC is attempting to educate the Canadian people: unlike the MSM in the USSA.

Meltdown: The Men Who Crashed the World

Naked greed and mafia recklessness by the fascist titans of Wall Street trigged the largest financial crash since the Great Depression.  A virtual "Who's Who" of those to be lynched if there is any justice in the future. All these Sages should be in Cages.



macfly's picture

It won't stream outside Canada, any other sources for this?

DavidPierre's picture


Must be the US/MSM Nazis blocking foreign (ie. TERRORIST)

propaganda from Canada.

I'll look around. See if there are other links.


Grappa's picture

Doesn't work.

Can you get this video sent to other outlets? CBC sites don't seem to work outside Canada.


pan-the-ist's picture

<troll>Carefull, the libertopians on this site don't like this view of unregulated capitalism.  They'll regect this and try to figure out how it is the politicans fault for not deregulating the market enough... or something.</troll>

Treeplanter's picture

Bloody shame.  Canada gets the American channels.  We should at least get CBC and CTV. There are a lot of quality shows we miss.  Makes no sense.  And even the CBC has a tradition of mocking their liberal heroes and of waving the Maple Leaf flag.

New_Meat's picture

sorry, can't happen, CNBS and MSNBC can't afford to lose their viewer.

- Ned

lance_manion's picture

True, but we Canadians cannot stream US content from many American sites either.

whatsinaname's picture

Who would you trust regarding gold ? Roubini or Gspan ? Not against gold per se but I'd hate to be front run by former elites when gold has had a multi-year run.

I'd rather get into some downtrodden currencies that yield a lot more..

piceridu's picture

What happened to that 1957 Greenspan?...sold his soul

Conrad Murray's picture

Fuck it.  I'll be damned if Greenspan didn't know what he was doing.  He may go down in history as the enabler of all that is wrong, but I have the unshakable, sneaking suspision that this PoS knew exactly what he was up to.

Alan, on the off chance you read this, and you actually did these things for the reasons I, we, may suppose you did, god bless you.  BUT, if you just want to ride this wave of populist agnst I hope you choke to death on your own spit in your sleep.  If you're a slave to the fascist interests of the US of A, I hope you, and all of your family, die the slowest, most painful death imaginable.

Treeplanter's picture

Greenspan said he had no problem with fraud on Wall Street.  Smart but no integrity.

Johnny Dangereaux's picture

Conrad, I too have been following Bix. I know he is not crazy, and once you read the comic book, you'll see he's definitely on to something. If AG really wanted to do good, he should have suicide bombed the CFR...then I would for sure believe he's a good guy...

Turd Ferguson's picture

Andrea Mitchell sucked the life out of him.

New_Meat's picture

married Andrea--and she puts on head scarf for ... ?

- Ned

johngaltfla's picture

His bitch is keeping him in line now.

MrVincent's picture

Greenspan: "Fiat money has no place to go but gold."

Article: "The American people, he asserted in his book, have for the most part 'tolerated the inflation bias as an acceptable cost of the modern welfare state.' "


 A politician or high-ranked member of government can only be honest when they are no longer in power. There is a reason so many of us are demanding a limited government.


Bananamerican's picture

"The American people, he asserted in his book, have for the most part 'tolerated the inflation bias as an acceptable cost of the modern welfare state."


wot a fucker....(can i say "fucker" on ZeroHedge?)

snowball777's picture

How many of you are requesting a limited MIC?

sporb's picture

Perma-Bear, Ultra-Bear.. how about PermaMonkeyMind?

Sheesh. This blog used to be cutting edge, now it's "far corner of the pub".  Just sayin....

faustian bargain's picture

Your comment says more about you than about the blog. Just sayin.

sporb's picture

The perma-crash perma-bull thing has lost it's edge, whether it proves to be accurate or not. Just sayin...

i.knoknot's picture

me, being tired of a completely dysfunctional market (and believe me, i am tired of it), doesn't make it any less dysfunctional.

SWRichmond's picture

We, outside the halls of corrupted power where decisions are made that turn our economy, our markets and, in the process, our lives into little more than shallow shells or ghosts of no substance, rail against the charade of big government, controlled markets, fiat currency-thingies, and the useful idiots that are our "elected officials".  We know what a genuine free market can do, warts and all, for the lives of folks big, medium, and little.  We want our goddamned capital markets back.  We want our goddamned economy unleashed.  We want real money.  We build a case that is devastatingly clear, we convince the fence-sitters, we prepare for the time when we can rebuild.  We know it's coming.

Virginian's picture

God bless ya', SW! That's the goal - restoring the system that we have allowed over the years to atrophy into something that serves only the interests of a very few. The tree of liberty is thirsty....

Maniac Researcher's picture

I don't see bringing up Ayn Rand as a huge help in bringing in "fence-sitters." Atlas Shrugged is just as absolutist in its world view as Das Kapital. Sounds more like consolidating your base. I suppose you can always construct a "We" with a few platitudes, but I personally don't see this current conversation as all that productive - other than allowing people to let off steam about the economy.

SWRichmond's picture

Then it is no more or less productive than your comment above, yet you chose to make it; why? 

Maniac Researcher's picture

Aww, did I hurt your feelings, Richmond? Because only the most productive comments ever get made on Zero Hedge -- I mean, jeez.. I should probably be ashamed of myself! Perhaps I should just post some poorly photoshopped bikini photos to add legitimacy to the discussion and the website, no?

Did you know that after completing Atlas Shrugged, Ayn Rand went into a deep depression because she realized she could never match the integrity of her fictional character John Galt? True story. Do you also hold the world to an unrealistic standard? ( hoping anyone outside of your embittered community gives a shit about such insipid dogma?)

SWRichmond's picture

Hurt feelings, at ZH?  You gotta be shitting me.

Just enjoyed pointing out your own lapse and thought I'd inquire about why you stooped so low.

Maniac Researcher's picture

....if by lapse you mean ignoring my critique, then yes.

MsCreant's picture

I don't see you offering us any "edge." 

grunion's picture

That's because SW Richmond can be one hell of a rough neighborhood.

MsCreant's picture

I was being a bitch to sporb. The comments can be hard to track.

enobittep's picture

Yes, sold his soul.

Miss Expectations's picture

For what?  Federal Reserve Notes that he could print himself? Circular.

reave the sheeple's picture

To devalue gold, all while scooping it up at firesale prices with freshly printed FRNs?


Gotta pay for your retirement somehow...

bigkahuna's picture

When this run on commodities finally happens, I think it will be fast. I don't know how effective it will be in bringing down fiat though. We all know that through money creation, the fed itself has been securing all manner of assets on it's own balance sheets to include treasuries and through it's proxies (or perhaps directly) stocks. At some point the fed will be able to hold these fiat based assets at a baseline if it so chooses, even in the face of a run. IMO they will then be able to hold the federal government over a barrel-if they are not doing it already. Our dictator is the Federal Reserve Bank. What they want is what they will get. I suspect that this alone is the reason that the whole system has not already come down. Not because of any robustness in our currency or economy. Perhaps the Chinese government is the only entity that could throw it off track sooner--and perhaps the reason they have not is because they know that every second the system runs as it is takes the "world's super power" closer to a truly fatal and non-recoverable destruction-rather than a depression lasting a few years.

Temporalist's picture

It's funny but perhaps the Chinese just don't care.  They don't spend their money on useless wars, they just sit patiently and watch the U.S. overextend itself, use their money for intellectual piracy and counter intelligence instead of empire building and policing the world, and keep producing goods for the rest of the world including now being the largest producer of Au.

If anyone has forgotten, China is much older than the U.S. and most other countries and cultures.

eigenvalue's picture

The Chinese don't spend their money on useless wars but waste it on meaningless projects, houses and infrastructure.

Beware of China. It is a huge time bomb. It is Japan in the 1980s times 1000. China is producing its goods at the expense of the environment and social stability. One survey says 90% of the rivers in China are polluted. The Chinese government spends more on securing social security than national defence. That means the Chinese government has to deal with numerous social riots every year!!!

China is a large gold producer but also a net importer as far as I know.

Bananamerican's picture

Ya. I don't buy this whole "China will clean our clocks" line....They've had thousands of years to get their shit together and you wanna tell me that ChiComn Kapitalism represents the omphalos of that history?

I'll bet THEY blow FIRST....I'm sensing a low thread count moment in the denim facade of their great leap forward

Treeplanter's picture

Agree.  They are still a totalitarian dictatorship.  They don't realize how much this retards their progress.  Internal problems will trump their global ambitions.

SWRichmond's picture

Everything you just said applies to the U.S. almost equally.  CONgress surely doesn't realize how much their meddling retards our progress.  Internal problems are right now in the proicess of trumping our global ambitions.  We are a nearly total dictatorship; wait until the first sign of genuine internal trouble to see what I mean.  "Restore the Constitution" movements are now considered "terrorism."