There is an interesting article by Axel Merk on the Value Walk site recounting a panel discussion at the New Orleans Investment Conference from last Saturday. This conference featured the views of several investment professionals, newsletter writers, reporters, market commentators and one, Mr. Alan Greenspan - who made the prophetic comment which serves as the title of this entry. In a back and forth with Marc Faber, the former Federal Reserve Chairman lay the responsibility of the expanding welfare state on the United States Congress and their fiscal policies.
Though Greenspan did not (and understandably so) comment on the current policies of the Federal Reserve, the "Maestro" provided plenty of, one assumes candid and certainly typical Greenspanesque, opinions to question fielded during the panel discussion.
On the price of gold:
Greenspan: Price of Gold will rise
Q: “Where will the price of gold be in 5 years?”
Q: “How much?”
On the Federal Reserve:
“I never said the central bank is independent.”
On Quantitative Easing (QE):
“The Fed’s balance sheet is a pile of tinder, but it hasn’t been lit … inflation will eventually have to rise.”
“Gold has always been accepted without reference to any other guarantee.”