In honor of the forgotten words of
dead mostly dead (looking) people everywhere, today we continue our weekly casual examination of:
(That's an echo.)
The "Fed" succeeded: it stopped the gold loss, but it nearly destroyed the economies of the world, in the process. The excess credit which the Fed pumped into the economy spilled over into the stock market-triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed.
--from the essay "Gold and Economic Freedom" by Alan Greenspan, 1966 (wherein he argues FOR the gold standard)
NOTE: This was 20 years prior to him being named Chairman of the Federal Reserve Board. 30 years prior to the excess credit which his Fed pumped into the economy spilled over into the stock market-triggering a fantastic speculative boom. And nearly 35 years prior to the same thing happening in the real estate market. Cast in this light, his "Oops, I failed to detect a flaw in the model that defines how the world works" excuse somewhat breaks down.