Greenspan Says Euro ‘Breaking Down’ Gold Is Not A Bubble - By Joshua Zumbrun - Aug 23, 2011 7:28 AM PT
Alan Greenspan: Gold Is Not A Bubble - Aug 23rd, 2011 08:53 by News August 23 (Bloomberg) — Former Federal Reserve Chairman Alan Greenspan said fissures in Europe’s common currency may lead to slowing in the U.S. economy.
“The euro is breaking down and the process of its breaking down is creating very considerable difficulties in the European banking system,” Greenspan said today in Washington.
…Greenspan also said that he did not think gold, which reached a record above $1,900 an ounce this week, was in a bubble.
“Gold, unlike all other commodities, is a currency,” he said. “And the major thrust in the demand for gold is not for jewelry. It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating.” --
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