Quoth the Raven
· QTR’s Fringe Finance
· July 20, 2026 at 11:45
· ⏱ 9 min read
| Read on Substack ↗
Summary
The article argues that Alan Greenspan's monetary policy as Fed chairman was deceitful because it used inflation (money supply expansion) to stealthily transfer purchasing power from savers to the government, analogous to bank robbery. For markets, this is a historical/philosophical critique with no actionable trade implications.
•Cumulative inflation during Greenspan's term (1987–2006) was 77.5%, meaning a $1 item cost $1.77 by 2006.
•The author cites Greenspan's 1966 'Gold and Economic Freedom' article, which argued that fiat money allows inflation that effectively steals purchasing power from the public.
•The tech industry (personal computers, peripherals, services) experienced massive deflation and productivity growth during the same period, contradicting the Fed's need for 2% inflation.
•Greenspan received numerous honors including the Presidential Medal of Freedom and a British knighthood, despite the author's claim that his policies were harmful.
•The author draws a direct analogy between Willie Sutton robbing banks (taking money by threat) and Greenspan's Fed inflating the money supply (taking purchasing power without consent).
•The article suggests a gold standard would prevent this theft because credit would be backed by tangible assets, limiting the government's ability to inflate.