At yesterday’s Financial Services Committee hearing, in response to a question from Ron Paul, Alan Greenspan said that the Fed had gotten so efficient at managing the fiat money system that it does not matter if we have a gold standard or fiat money: the results will be the same. Greenspan pronounced himself surprised at his new found ability to match the results of the market, like Han Solo, Greenspan is so good he even amazes himself!

My colleague Adam Dick points out that even if one believes Greenspan’s claim, saying that government action will duplicate what would happen if the government did nothing does not justify the costs of the Federal Reserve.

Greenspan prefaced his comment by saying “we” decided to replace the gold standard with a fiat currency. Really Alan? I don’t recall anyone asking me if I preferred the state’s paper to gold.