Greenspan penned ‘Gold and Economic Freedom’ in 1966. The following excerpt sums up his position,
“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.”
His argument is relevant today. I believe we are in the throes of a severe financial catastrophe. When the other shoe drops, the people who do not have some of their assets outside of the system will be devastated. According to some financial pundits, once the fall becomes apparent, it will be too late to divest because of those whom waited and held their assets in banks, stocks and bonds will all be trying to exit at the same time.