Greenspan: "This Is The Worst Period I Recall; There's Nothing Like It"

Tyler Durden's picture

During a CNBC inteview today, when discussing the historic Brexit vote outcome, Alan Greenspan unleashed a fiery sermon that could have been prepared just by reading a random selection of posts from this website, the former Fed chairman told his shocked hosts that the current period, far from the raging "Obama recovery" spun every day by adaministration propaganda appratchicks and one that prompted the Fed to unleash a ridiculous rate hike cycle in December just as the US is sliding into a recession, and is instead the "worst period" he has seen, surpassing even the infamous Black Monday in severity.

"This is the worst period, I recall since I've been in public service. There's nothing like it, including the crisis — remember October 19th, 1987, when the Dow went down by a record amount 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect that will not go away. I'd love to find something positive to say."

Of course, what he is referring to was a market shock which was the result of a massive capital account imbalance resulting from the aftermath of the Louvre Accord coupled with the then trendy Portfolio Insurance (in which everyone was on the same side of the boat, much like now) and not so much an all out economic malaise. Which, however, does beg the question when a Black Monday-like market crash is coming?

Rhetorical questions aside, Greenspan was referring to the unprecedented combination of economic stagnation, deteriorating demographics, insolvent entitlement programs, social inequity and wealth division, and of course, a historic debt overhang which could and should have been cleared out in the crash of 2008 but instead was preserved to avoid wiping out the same "equityholders" who also happen to be the Fed's direct and indirect stakeowners.

To be fair, Greenspan, who in recent years has become one of the loudest advocate of gold alongside billionaires such as Druckenmiller and Soros, did not say anything our readers did not know. The former Fed chairman said that the root of the "British problem is far more widespread." He said the result of the referendum will "almost surely" lead to the Scottish National Party trying to "resurrect Scottish Independence."

Greenspan said the "euro currency is the immediate problem." While the euro and the euro zone were major steps in a movement toward European political integration, "it's failing," he said.  "Brexit is not the end of the set of problems, which I always thought were going to start with the euro because the euro is a very serious problem in that the southern part of the euro zone is being funded by the northern part and the European Central Bank," Greenspan said.

He then repeated a point that has been widely accepted in recent months, namely that monetary policy - while still the only game in town - is now impotent. Greenspan said the ECB is limited in what it can do because these fundamental problems like the stagnation of real incomes don't have easy solutions. "There's a certain amount that monetary policy can do, but our problem is fundamentally fiscal," he said, adding that this is true in the United States as well as "every major country in Europe." Part of the problem is that the "developed countries are all aging very rapidly," which is leading to a higher ratio of government spending in the form of entitlements, Greenspan said.

A far bigger part of the problem is the toxic loop of monetary and fiscal policy which we have pounded the table on for years, and which S&P laid out for all to see when it said that the more monetary easing takes place, the less incentive there is for reform and actual fiscal policy.

Since we have covered everything Greenspan said extensively in the past seven years, we won't spend time repeating ourselves. Readers can watch the 90-year-old former Fed chairman admit everything we have said in the following two clips.

 

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QuickFrozen's picture

What a beautiful day! Brexit is only the beginning of the European revolution against the world plutocracy. The main events yet to come.

Hippocratic Oaf's picture

Die Yoda, DIE!!

You goddamn fuck started this shit!!!

Harlequin001's picture

Is he not dead yet?

I thought he was.

I think he should be.

Pinto Currency's picture

 

Total US debt (consumer, corporate, and government debt combined) was $11 trillion (or 215% of US economic output or GDP) when Greenspan took over the Fed in 1987.  When he retired in 2006, total US debt was $44.4 trillion (or 312% of GDP).  It is now $63 trillion or 350% of GDP.

The historically stable level of total debt-to-GDP was 150%.

https://research.stlouisfed.org/fred2/series/TCMDO

http://www.macrotrends.net/1381/debt-to-gdp-ratio-historical-chart

Aristotle of Greece's picture
Aristotle of Greece (not verified) Pinto Currency Jun 24, 2016 12:36 PM

Greenspan, Bernanke, Yellen, all speak out of both sides of their mouths. They're DISEASED.
http://wp.me/p4OZ4v-Hn

FreezeThese's picture
FreezeThese (not verified) Aristotle of Greece Jun 24, 2016 12:40 PM

RIP 401K

Occident Mortal's picture

Wow guys, did we really just vote against the establishment?

Did we vote against the wishes of Soros?

Did we vote down the technocrats?

Fuck Yeah!!

Dental Floss Tycoon's picture

Chicken Liittle was right the sky is falling.

 

We're all gonna die!

mtl4's picture

Lord have mercy......not sure what he's talking about, the only public service Greenspan ever did was to retire.

BaBaBouy's picture

""I'd love to find something positive to say.""

Well Then Alan, just admit to US how much GOLD you own .?.

Save_America1st's picture

"This is the worst period I recall since I've been in public service." - Greenspan

Well hey, this is coming the scumbag who pretty much started the whole fucking mess.  But who knows...he still might secretly be one of the good guys if you subscribe to the theory going around that he started all of this because he was working for the good guys to eventually take down the corrupt system so that we could start over again with a gold standard.

I don't know if he really did it that way on purpose or not.  But it is true that he was always a gold standard proponent before he took the Fed position and turned to the Dark Side of the Farce.

And now that we're closer than ever to finally collapsing it all he starts talking like a good guy again.  Maybe that's to save his ass and his sole to keep himself out of a special place in hell???  I just don't know. 

We'll just have to keep watching and waiting to see how this whole shit show is going to turn out in the end though.

Keep stacking the essentials, folks!

mtl4's picture

"There's a certain amount that monetary policy can do, but our problem is fundamentally fiscal," he said, adding that this is true in the United States as well as "every major country in Europe." Part of the problem is that the "developed countries are all aging very rapidly," which is leading to a higher ratio of government spending in the form of entitlements, Greenspan said.

 

He did everything except admit that government has outgrown it's britches.......tax & spend, tax & spend, rinse & repeat.

JoeSoMD's picture

Was worse than you say... you've got to stuff print in there somehow.

natty light's picture

"There's a certain amount that monetary policy can do, but our problem is fundamentally fiscal," he said, adding that this is true in the United States as well as "every major country in Europe." 

Well thanks for that Mr. Late-or-never.

Raging Debate's picture

My opinion on Greenspan after reading 'Age of Turbulence' was that he was attempting to quad stack so high that it would push new technologies to soften the blow of demographic imbalance. Between tech, biomed and physics he probably succeeded. But few will ever give him that credit.

Besides, politics always want a scapegoat. It seemed he could push the pedal to the floor of the big canyon or just say no and have pulled the punch bowl away. I am loathe to admit I wold have done the same thing.

As the debt is restructured and we all eat the last bites pf the shit sandwich, it will be wise to consider how we grow in the next cycle afterward. We are an impatient species. Going slower will be better if a bit dull. 

 With evolution man now has recognized the train. We have a lever of faster or slower. Pegging it to 10 out of 10 derailed us. Perhaps set it to 6 next time.

 An important takeaway is that a private Central Bank is worse than just a treasury. Currency, a form of energy should be a public function. Doing so takes away the three card monte game of how government spends and taxes.

 I hope the old goat gets a couple years peace in his last years of life.  

Pinto Currency's picture

 

Actually, what Greenspan, the BIS, the LBMA, and the bullion banks did was rig the pressure meter on the steam engine and then they set the throttle at 12.

The boiler is now going to detonate.

Fiat money systems are always rigged and destroyed by those who are at the power center.

There is no '6'.

Handful of Dust's picture

"This is the worse period I recall....I am sorry I created it...."

 

~ The Guru of Economic Destruction

BarkingCat's picture

"Maybe that's to save his ass and his sole to keep himself out of a special place in hell???"

 

Jews don't believe in hell.

I think I see a connection between the threat of eternal damnation and current behavior. 

It is what keep a lot of the people in line.

NotApplicable's picture

I've always wondered if he intentionally blew everything up on purpose in order to move back to a stable monetary system, given he still stands behind his article on gold.

ajax's picture

 

Greenspan's Ayn Rand years come back to haunt him big time over and over again. She was a dreadful charlatan and so is he. The most dreadful Jewish-American idiocy ever. Ayn Rand was a cheap trick, her entire oeuvre beggars belief and Greenspan sat at her cold feet admiringly. What a pair of monsters, frankly:

https://www.youtube.com/watch?v=R5lZPWNFizQ

 

 

Tall Tom's picture

 

 

 

 

I agree. Bix Weir might be right about it.

Booked's picture

Blame Andrea Mitchell!  After his first marriage was annulled in 1953, he remained unmarried for almost 45 years, when he married longtime girlfriend Mitchell.  The start of their relationship dovetails nicely into his becoming Fed chair in 1987, and many policies either advocated or given a blind eye by him could be viewed as positive for enhancing Mitchell's career and well-being, and definitely in accord with the age old wisdom of "keeping mama happy".  When an independent man takes a strong wife, many times the rule becomes "Move or bleed".

Stuck on Zero's picture

Government hacks swear everything is rosy, honest, and getting better while in government service.

Two days after leaving government service they denounce the schemes, deceipt, and waste of the whole system.

 

ajax's picture

 

Same thing with anyone working in defense - only perhaps much, much worse in defense.

ajax's picture

 

Same thing with anyone working in defense - only perhaps much, much worse in defense.

J J Pettigrew's picture

as they collect their fat pensions and enjoy the finest health care

jcaz's picture

Sure Al- higher taxes is surely the answer...  Fuck you, die already.....

Pontius's picture

The kitco site is down - too many orders?

eforce's picture

Just like The Protocols said...revolutions in Europe caused by a global financial crisis....

Tom Servo's picture

DIe you old jew, fucker!  Why don't these reptiles ever fucking die?!

 

Farqued Up's picture

Ironically, because he is in the care of the Reptiloids he will live far longer than we peons. Ever noticed the elites never die of cancer. Soros, Rockefeller, Rothschild, and Kissinger, et al, will all probably make it to 150 spreading their death and destruction the whole way.

They stand ready to clone themselves and are feverishly working to finish the perfection of memory transfer from one brain to another. They may already have accompolished it, but at the least, they will clone themselves for spare parts.  

jeff montanye's picture

but this brexit deal has lightened the mood, imo.  people are singing, even if it is to obama, as a negro without talent, from denmark:  https://www.rt.com/news/347529-danish-youth-party-obama/

Raging Debate's picture

Farqued Up - No. Science has not figured out how to transfer consiousness. The government launch Brain Initiative in 2012, the 2013 launch of Google's operation Calico seek to change that. By 2030, this will be aa reality. By 2052 we will be beaming ourselves across the universe and even through 4d. But this last round/wave of sociopaths in evolution is a real bitch.

ZomBiEHiGH's picture
ZomBiEHiGH (not verified) Farqued Up Jun 24, 2016 8:30 PM

Where can I read about this?

Tarshatha's picture

"This is the worst period, I recall since I've been in (((public service)))"

 

My goodness, this Jew imposed Cultural Marxism for shekels and white genocide narrative is unravelling fast.

 

Quick, we need another holocaust movie, the eternal victim facade is thinning.

jeff montanye's picture

i'm burnt out on holocaust films.

Croesus's picture

Try watching something from the non-fiction section...

cheka's picture

nobody buys from those jackholes

peddling-fiction's picture

These people never retire. They continue behind the scenes.

They have to continue being busy bees for the hive.

Escrava Isaura's picture

Alan Greenspan: ”This is the worst period. There's nothing like it, including the crisis of 1987. I thought was the bottom of all potential problems. This has a corrosive effect that will not go away.” 

 

Mr. Greenspan, this is not the worse period. The worse period is yet to come. But please don’t feel too bad about peddling economic nonsense for the last 30 years. What’s to come from the following leaders will be even worse.

 

Four chan's picture

FUCK YOU GREENSPAN! AN OBJECTIVIST.

zeropain's picture

so awsome, Greenspan the greatest printer turned uber bear.   that is how you make the most money tho isnt it.  

Kirk2NCC1701's picture

GreedSpam's so-called Public Service was not for the US Public.

It's first and foremost for his Tribe.  Otherwise we wouldn't keep getting Tribesmen in the Fed and Treasury, when they're a mere 2% of the population.  Duh, gullible Goyim!

Heavy's picture

I hope the Greeks get ahold of that old thief

petar's picture

Only to symbol minded people gold has any value... Technology is what matters!

BarkingCat's picture

your shitty technology did not prevent you from making a shitty spelling mistake.

johngaltfla's picture

I figured the worst period he would recall would be the first time that Andrea Mitchell, that annoying cunt he married, took of her clothes for the first time.

VinceFostersGhost's picture

 

 

 

since I've been in public service.

 

Heh heh.......good one!

nope-1004's picture
"This Is The Worst Period I Recall; There's Nothing Like It"

Ya, sucks when the citizens choose freedom over a bank state.  Greenspan trotted out to start the PR gig.

Pitchforks and dozers down to the capital.  The people need to take back this country and hang all these asshole bankers that publicly state how freedom is bad.

FU Greenspawn.