Former Fed Chief Shares Deep Concerns About the U.S. Economy

6:02 AM


June 29, 2016 --Stock markets rallied yesterday and recovered almost exactly what was lost in Monday's trading. The U.S. dollar fell slightly, indicating fears of additional market turmoil lessened. Gold and silver prices confirmed that sentiment, finishing modestly lower.

Former Fed Chairman Alan Greenspan made headlines in a Bloomberg interview this week in which he shared deep concerns about the U.S. economy. He pointed to persistent U.S. deficits resulting from the failure of economic growth in keeping up with government spending and said "we are in very early days a crisis which has got a way to go..."

Greenspan attributed the problem, in part, to the U.S. abandoning the gold standard -- a move that has enabled an explosion in government debt and money creation.

Mr. Greenspan isn't the only one talking about a return to the gold standard. Presidential hopeful Donald Trump has also raised the idea in recent interviews. And central bankers have been adding heavily to gold reserves in recent years, following decades of selling.

Live prices at MoneyMetals.com show gold currently trading at $1322.75 per ounce on the global market, and silver is coming in at $18.36.

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