Gold, Bitcoin And Economic Freedom | Seeking Alpha

In 1966 Alan Greenspan wrote an article ‘Gold and Economic Freedom’, in which he claimed in the absence of a gold standard there would be no way to protect one’s savings from inflation. Greenspan noted that if there were a safe store of value government would make its holding illegal, the banning of private gold holdings in 1933 being a famed example. But was there a different reason behind the banning of gold? After all, holding a balanced indexed portfolio over the long term has proved a good way to protect your savings, why no war on stocks and bonds?

Gold was targeted in 1933 because it was the monetary base people could hoard at the time. The monetary base people can hoard today is cash. It is the hoarding of cash, not gold, that threatens to bring about deflation. This is why attacks on cash have become more frequent, and why you are seeing more and more articles covering the war on cash. Without cash in the way negative interest rates can be imposed to encourage spending.

Like gold, hoarding Bitcoin does not lead to deflation, so why has it has received heat?


Read more ... source: TheBitcoinNews

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