Alan Greenspan: QE Failed To Help The Economy, The Unwind Will Be Painful, "Buy Gold"

Tyler Durden's picture




 

It appears it is time for some Hillary-Clinton-esque backtracking and Liesman-esque translation of just what the former Federal Reserve Chief really meant. As The Wall Street Journal reports, the Fed chief from 1987 to 2006 says the Fed's bond-buying program fell short of its goals, and had a lot more to add.

Mr. Greenspan’s comments to the Council on Foreign Relations came as Fed officials were meeting in Washington, D.C., and expected to announce within hours an end to the bond purchases.

 

He said the bond-buying program was ultimately a mixed bag. He said that the purchases of Treasury and mortgage-backed securities did help lift asset prices and lower borrowing costs. But it didn’t do much for the real economy.

 

“Effective demand is dead in the water” and the effort to boost it via bond buying “has not worked,” said Mr. Greenspan. Boosting asset prices, however, has been “a terrific success.”

 

...

 

He observed that history shows central banks can only prick bubbles at great economic cost. “It’s only by bringing the economy down can you burst the bubble,” and that was a step he wasn't willing to take while helming the Fed, he said.

 

...

 

The question of when officials should begin raising interest rates is “one of those questions I cannot answer,” Mr. Greenspan said.

 

He also said, “I don’t think it’s possible” for the Fed to end its easy-money policies in a trouble-free manner....

 

"Recent episodes in which Fed officials hinted at a shift toward higher interest rates have unleashed significant volatility in markets, so there is no reason to suspect that the actual process of boosting rates would be any different, Mr. Greenspan said.

 

...

 

“I think that real pressure is going to occur not by the initiation by the Federal Reserve, but by the markets themselves,” Mr. Greenspan he said.

And finally - while CNBC's audience is told what a terrible thing gold is, "The Maestro", having personally created the financial cataclysm the world finds itself in following a lifetime of belief in fiat, Keynesian ideology and "fixing" one bubble with an even greater and more destructive asset bubble, has suddenly had an epiphany and now has a very different message from the one he preached during his decades as the head of the Fed.

Mr. Greenspan said gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.

What Greenspan failed to add is that it is thanks to his disastrous policies (subsequently adopted by Bernanke and Yellen) that gold is the "place to put money."

And now, paging Scott Nations.

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Wed, 10/29/2014 - 13:25 | 5390433 firstdivision
firstdivision's picture

Fuck you Alan!

Wed, 10/29/2014 - 13:36 | 5390506 Slave
Slave's picture

The Tribe must be ready to send gold down some more...

Wed, 10/29/2014 - 13:39 | 5390522 Aaaarghh
Aaaarghh's picture

I would like to see a long line of these fuckers (greedspank, bernank, yellen timmah, et al) queing up for the axeman, and if the position was going, i'd do it for free.

Wed, 10/29/2014 - 13:41 | 5390530 Mi Naem
Mi Naem's picture

Sell tickets; we'll pay to take turns. 

 

Wed, 10/29/2014 - 13:42 | 5390545 Timmay
Timmay's picture

What did he say? His tongue was flickering so fast......

Wed, 10/29/2014 - 13:45 | 5390555 SilverIsKing
SilverIsKing's picture

Why now?  That's the only question that matters.

Wed, 10/29/2014 - 13:47 | 5390561 Pinto Currency
Pinto Currency's picture

 

 

After screwing the US and the world, Greenspan thinks that he can switch sides and join the pro-gold crowd now.

 

It doesn't work that way.

Wed, 10/29/2014 - 13:49 | 5390582 Headbanger
Headbanger's picture

Translation:  Fuck Obozo and the Dumbocraps cause Alan hates those fucking assholes!

Wed, 10/29/2014 - 13:55 | 5390618 GeorgeWKush
GeorgeWKush's picture

What, isn't Greenspan dead yet?

Wed, 10/29/2014 - 13:59 | 5390634 max2205
max2205's picture

STFU you old prune!

Wed, 10/29/2014 - 14:19 | 5390767 Keyser
Keyser's picture

Oh shit, now that Quasimodo has said to buy gold, should we be contrarian and sell?  I don't think so...

Wed, 10/29/2014 - 14:24 | 5390800 remain calm
remain calm's picture

Fuck you Nation!

Wed, 10/29/2014 - 14:37 | 5390866 BaBaBouy
BaBaBouy's picture

Actually Gruenie Was A Sort Of A GOLD Bull Way Back When...

He Knows "THE GAME" Better Than Most Out There.

Regardless Of What He Says Anyway... GOLD Will Be Moving Big...

Wed, 10/29/2014 - 15:39 | 5391110 MeMadMax
MeMadMax's picture

The fed has painted itself into a corner...

 

It can neither raise interest rates nor stop QE because the dems' will throw a fit at a bad economy making them look bad and... oh yea... a bad economy fully exposed for all to see...

 

The End...

Wed, 10/29/2014 - 15:43 | 5391126 cnmcdee
cnmcdee's picture

Hopefully after Novemeber there will be a lot less COCKSUCKING PIECES OF SH*T around to throw fits because the economy makes them look bad.

Do your duty with seething pride vote them all out!

Wed, 10/29/2014 - 15:57 | 5391168 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Thank you captain obvious!

Wed, 10/29/2014 - 16:13 | 5391220 SoilMyselfRotten
SoilMyselfRotten's picture

Been waitin for the bathroom all afternoon,i gotta take a Greenspan

Wed, 10/29/2014 - 16:15 | 5391225 BellyBrain
BellyBrain's picture

And then gold drops $20...Anyone else ever feel like the meme of

"buy gold 'cause it's the only thing that will be worth anything...eventually" is getting pretty fucking worn out?

Wed, 10/29/2014 - 17:11 | 5391379 SamAdams
SamAdams's picture

I believe this time he is speaking the truth.  Gold is low right now, hovering slightly above the cost of production.  Sovereign debt is huge, and that may soon make people seek non-gov't related returns, i.e. gold and equity.  Did I mention we are due for a recession, probably near the beginning of 2016?

At the same time, there is also the chance of deflation, which will work to offset the rise in gold prices.  Deflation will be caused by the government seeking funds to repay the fiat debt.  They will flip every stone, pulling money out of the system.  The FED doesn't even have to raise rates for this to happen.

So, it's a contrarian view squared.  Hyper inflation only happens once the government has exhausted it ability to borrow from foreign entitites (we are getting close) and to pull money out of its own citizens.

Wed, 10/29/2014 - 17:30 | 5391450 gmrpeabody
gmrpeabody's picture

Hope it's not too late tomorrow to load up on gold...,

I can't wait till the market opens.

..........(grains of salt)

Wed, 10/29/2014 - 18:30 | 5391610 wintermute
wintermute's picture

Why, oh why didn't Greenspan grow a brain before he retired?

Wed, 10/29/2014 - 19:19 | 5391726 Alhazred
Alhazred's picture

Im sure he knew this shit all along.

 

just wait, he is trying to get street cred and hirehimself out as a spokes person.

 

As for me, fuck him fuck the fed fuck the feds and fuck the fucks who fuck me.

... to put it politely

 

(Im buying both 1 oz gold bars, and 168 grain lead "bars" because i like to diversify)

bgasc.com is always has the best gold price, and ammoseek always finds the best lead price.

Wed, 10/29/2014 - 21:01 | 5391974 dogbreath
dogbreath's picture

This short could be updated but still funny today

 

http://www.youtube.com/watch?v=RYA0DsPcbaU

 

 

Wed, 10/29/2014 - 22:11 | 5392185 OLD YELLER
OLD YELLER's picture

Triple plus good Dogbreath!! That's all that needs to said!

Wed, 10/29/2014 - 22:33 | 5392225 palmdetroit
palmdetroit's picture

guys better listen buy gold sell guns and ammo crash your mamma! Alan told you so! if you hold it or something

Thu, 10/30/2014 - 03:31 | 5392644 old naughty
old naughty's picture

"I believe this time he is speaking the truth. "

Perhaps...Or, maybe he's been "right" all along, as indicated in Road To Roota !?

http://www.roadtoroota.com/public/101.cfm

A two-headed snake, a lier, or...?

Can he be likely (unlikely) saving of America in the collapse?

Thu, 10/30/2014 - 03:37 | 5392649 old naughty
old naughty's picture

“Don't be satisfied with stories, how things have gone with others. Unfold your own myth.” - Rumi

 

http://www.roadtoroota.com/public/190.cfm

"The Road to Roota Theory postulates that there is a group of people in the United States as well as around the world that are working to remove and destroy the financial banking powers that have secretly controlled all aspects of our lives for hundreds of years. The original idea of this group sprang from the mind of Alan Greenspan and involved rigging markets with computer programs that he had invented in the 1960's."

Thu, 10/30/2014 - 06:54 | 5392755 GetZeeGold
GetZeeGold's picture

 

 

The Road to Roota

 

Yeah.....not happening.

 

If you really think someone is looking out for you....then you live in fairyland.

 

Mr. Magoo is right about one thing.....you'd better get some damn gold.

Wed, 10/29/2014 - 22:28 | 5392214 sleigher
sleigher's picture

Are they talking about greenspan on CNBC where they were laughing at Schiff yesterday?

No doubt someone would be fired if they even mentioned it.

Thu, 10/30/2014 - 03:41 | 5392651 old naughty
old naughty's picture

a martyr in the making? hummmmm...

Wed, 10/29/2014 - 19:19 | 5391729 nmewn
nmewn's picture

Satoshi says buy Bitcoin!!!

Oh, wrong thread ;-)

 

Wed, 10/29/2014 - 22:52 | 5392277 sleigher
sleigher's picture

Fonestar FTW!!!!1!1one

Wed, 10/29/2014 - 16:58 | 5391348 fleur de lis
fleur de lis's picture

Why is that wrinkled up old prune still in control of our money and babbling nonsense? He doesn't even believe his own fables. He should be under house arrest in a nursing home for crazy central bankers.

Wed, 10/29/2014 - 17:10 | 5391383 Majestic12
Majestic12's picture

"Why is that wrinkled up old prune still in control of our money"

Interesting comment from someone waving an Illuminati avatar...hmmmm...

Nothing is ever "painful" for these reptiles.....they thrive on other's pain from a hidden dimension....

Nobody will ever believe it...and yet without this explanation...

...nothing makes "sense"...times up, pencils down....

Wed, 10/29/2014 - 19:53 | 5391799 fleur de lis
fleur de lis's picture

My avatar has nothing to do with the accursed trashbag Illuminati. The fleur de lis is an ancient and beautiful symbol. Why do you refer to these anti-social, psychopathic, destructive, degenerate, beggars on horseback as "Illuminati" as though they are bright? They are insufferably stupid. They have managed to pass themselves off as uppity only because they are deceitful, dishonerable, fraudster street rats who have unfortunately floated like sludge to the top of power. "Illusionati" would be more like it. 

By the way is that your mugshot on your avatar? And what's the deal with Majestic? Does it have something to do with the government weirdos who hatched another weirdo project by the same name? Are you with the wierdo government? 

 

Wed, 10/29/2014 - 22:01 | 5392159 IRC162
IRC162's picture

Fleur de lis roughly translates to green wilderness, redfish, venison, hot creole food and hotter women,  and gettin paid to hurt your bitch adversaries at game time.  Fuck yeah. 

http://youtu.be/tDT-p1RRll0

Wed, 10/29/2014 - 22:54 | 5392280 sleigher
sleigher's picture

I thoguht you said under a house, which would be ok with me...

Thu, 10/30/2014 - 10:43 | 5393597 Gavrikon
Gavrikon's picture

Don't get any Obama on your hands.

Thu, 10/30/2014 - 07:58 | 5392862 j0nx
j0nx's picture

HAHA how quant thinking voting still matters or that those machines aren't hacked to provide a 2% boost to the chosen candidates just enough to get them over the hump. You're seeing examples of that already in numerous states. Until those machines are destroyed and replaced with vetted and random individuals chosen from the public like jury duty who will count the votes then elections are and will remain a scam imo. Not to mention the amount of illegals and others voting numerous times as dead people who don't have to show ID because that would just be plain unfair and racist. I've got better things to do next Tuesday. Like wash my hair.

Wed, 10/29/2014 - 15:51 | 5391149 cnmcdee
cnmcdee's picture

The thing I see nobody every talks about is Phys is really about $1600 / ounce right now.  The number of certificates of Gold to Phys is TOTALLY FRAUDULENT AT ABOUT 100:1.  And they do this to create a depressed paper value that has nothing to do with Physical price <that is why it's so depresed because they are naked shorting it and they suck a bag of dicks!>

If you do not think so goto your local bank and ask for a gold certificate and how much.  As soon as they quote you ask how much for physical delivery... 

Wed, 10/29/2014 - 16:24 | 5391249 dontgoforit
dontgoforit's picture

The youtube of 'suck a bag....' is really funny.  That's how the banker laughs when you ask him for phyz. 

Wed, 10/29/2014 - 20:39 | 5391932 cnmcdee
cnmcdee's picture

src="http://www.youtube.com/watch?v=OT7xc_XqYO8">

There you go.. Suck a bag of dicks..

Wed, 10/29/2014 - 18:15 | 5391554 Escrava Isaura
Escrava Isaura's picture

 

 

I though the statement below, by Greenspan, was more telling than anything:

 

He was talking about “Financial’ bubble versus ‘Real’ economy:

 

(Volker) Put a clamp on the economy, only by bringing the economy down…

 

https://www.youtube.com/watch?v=XqHNF6NOpoE&list=UUL_A4jkwvKuMyToAPy3FQKQ“#t=39m59s

 

 

Wed, 10/29/2014 - 18:27 | 5391606 Marco
Marco's picture

Banks are not usually in the business of delivering gold with all the associated transaction cost.

Billionaires are not usually in the business of passing up an easy short squeeze.

Wed, 10/29/2014 - 21:07 | 5391995 Kirk2NCC1701
Kirk2NCC1701's picture

Fuck Gold!  Got more stupid Bullion (that's going nowhere) than a healthy portfolio needs.

What I DO need and should INVEST in, is a good 3D PRINTER, bitchez. 

As I posted earlier today*... the HP 3D PRINTER is the one to get, to print GUNS, and.. STUFF.  Doing that would be like printing Money.  Buying gold is a waste of time in comparison.  ROI on Gold = 0.  ROI on Guns and Stuff = HUGE.  Of course, one could always buy Gold with the profits of printing Stuff.  Duh!

* Wed, 10/29/2014 - 20:28 | 5391882  Kirk2NCC1701

Thu, 10/30/2014 - 00:40 | 5392485 trulz4lulz
trulz4lulz's picture

3D printers are amazing. What maerials would you use as a composite? I know I can google them, but I want to know what you would use. would love to print some widgets!

Thu, 10/30/2014 - 13:29 | 5394464 Kirk2NCC1701
Kirk2NCC1701's picture

Apparently you can use METAL, CERAMICS and "OTHER MATERIALS", where "Other" = Polymers (Plastics, Elastomers), etc.

Click on my post, (Wed, 10/29/2014 - 20:28 | 5391882  Kirk2NCC1701) to see the link to HP, which include an HP video presentation.  What's cool, is that you print a part that is hard & rigid on one end, and soft and pliable at the other end, and have a gradient or step-function in between.  Also, you can print in different colors or materials, and vary the surface texture and properties (smooth, rough, insulating or conductor).

IOW... Your Imagination is the Limit.  THIS is worth getting excited about and to have "hard-on" about, so to speak, because you can MAKE things that you need for FUN, PROFIT and PREPPING.  All joking aside, you could print yourself an Ebola Biohazard Suit.  You could print the gun Bottom, buy the Top. 

3D PRINTERS IS WHERE "GOLD" IS.  I plan to sell off part of my Gold to buy a 3D Printer (for fun+profit).  And then buy gold from the profit stream.  You see, sometimes... HOW you see the problem IS the problem.

Wed, 10/29/2014 - 14:27 | 5390821 Sages wife
Sages wife's picture

No Keyser, that's what he WANTS you to think.  Sneaky old bastard.

Wed, 10/29/2014 - 16:24 | 5391250 weburke
weburke's picture

fleece the gold folks, once again, sure make the singularity seem vulnerable to...................what>? some math god?

Wed, 10/29/2014 - 19:03 | 5391694 Escrava Isaura
Escrava Isaura's picture

 

 

Keyser

Greenspan never said to "Buy Gold" 


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