Former Bank of England head Mervyn King joins Alan Greenspan in advocating gold ownership
By: Michael J. Kosares, USA Gold
GoldSeek.com
Tuesday, 7 June 2016
In The End of Alchemy, Mervyn King, the former head of the Bank of England, writes of central banks’ frustration in dealing with the stagnant global economy. “Central banks,” he says, “have thrown everything at their economies, and yet the results have been disappointing, Whatever can be said about the world recovery since the crisis, it has been neither strong, nor sustainable, nor balanced.”
Similarly, former IMF chief economist, Olivier Blanchard was recently quoted in the Financial Times as saying: “And so the question is why is it, that with no fiscal consolidation and banks in decent shape, at least in terms of lending, and zero interest rates, we don’t have an enormous demand boom? That is now the puzzle.”
Alan Greenspan, in a recent interview with Fox Business News, offers the beginnings of an answer to Blanchard’s question – a question which happens to be on the minds of not just policy-makers but ordinary investors as well. “Our problem,” he said, “is not recession which is a short-term economic problem. I think you have a very profound long-term problem of economic http://www.usagold.com/cpmforum/wp-content/uploads/king-greenspan..png1-300×296.jpggrowth at the time when the Western world, there is a very large migration from being a worker into being a recipient of social benefits as it is called. And this is legally mandated in all of our countries.” The western world, he concludes, is headed to “a state of disaster.”
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