News Note: Alan Greenspan Says Return to the Pre-1913 Gold Standard "Would be a Great Thing"

This is going to cause a stir for sure. The Australian.com reports that in a radio interview Alan Greenspan endorsed the idea of a return to the full gold standard as used pre 1913. He made the comments during an interview about the recent Brexit vote. Here is the key quote in this article:

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"Mr Greenspan said in the interview that while he wouldn’t critique the current policies of the Fed, he said a return to how monetary policy was done more than a century ago — fixing the value of the dollar to a given amount of gold — would be a great thing.

“If we went back on the gold standard and adhered to the actual structure of the gold standard” as it was before 1913 “we’d be fine,” he said. “I’m known as a gold bug and everyone laughs at me,” he said. Mr Greenspan asked “why do central banks continue to own gold” if it isn’t important?

Mr Greenspan acknowledged that inflation has been low throughout the developed world, but he expects that to change. Citing what he sees as a steady and large increase in US money supply, he said “this type of economic environment ends with inflation.”

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Note: Sorry that the link above leads to a pay wall, but I did see the actual article to extract the quote above. 

Here is an article on Zero hedge on this as well for those who don't want to pay to read the article on the Australian.com site.

Here is the link to the Bloomberg interview (see 18:25 mark for gold comments)

Here is the article link as it appears on Google search as well:

Alan Greenspan laments Brexit vote

The Australian-3 hours ago

Former Federal Reserve Chairman Alan Greenspan said in a radio ... the US would be better off if it were operating on the gold standard again. ... he said a return to how monetary policy was done more than a century ago — fixing the value of the dollar to a given amount of gold — would be a great thing.

Added note: Former Group of 30 Executive Director Robert Pringle says Brexit shows a "need for new rules on money"