An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense... that gold and economic freedom are inseparable.

The quote by Alan Greenspan highlights the deep antagonism that many statists (those who support more government control over economic affairs) have toward the gold standard. Greenspan suggests that this hostility is rooted in the belief that the gold standard is closely linked to economic freedom. He implies that gold, as a stable and tangible asset, limits the ability of governments to manipulate or control the economy, especially through inflation or the expansion of currency. Therefore, those in favor of greater state control often oppose the gold standard because it restricts their ability to exercise influence over economic systems.

Greenspan’s statement points to the idea that gold serves as a safeguard for free markets, ensuring that economic power is not concentrated in the hands of governments or central banks. The gold standard, by tying currency to a fixed quantity of gold, imposes a discipline on spending and limits government intervention in economic affairs. For statists, this is problematic because it curtails their ability to make decisions that can affect the economy, such as printing money or adjusting monetary policies at will.

The origin of the quote comes from Alan Greenspan, the former Chairman of the Federal Reserve. Known for his role in shaping U.S. monetary policy, Greenspan has often expressed his views on the relationship between currency and economic freedom. Though he supported the gold standard in his earlier writings, his later career as a central banker saw him manage the monetary system without reliance on gold. This quote reflects his understanding of the tension between government control and the stability that a gold-backed currency could provide.

Ultimately, Greenspan’s quote serves as a critique of those who oppose the gold standard, suggesting that their opposition is driven by a desire to retain greater control over the economy. He argues that economic freedom and the gold standard are intrinsically linked, as gold prevents excessive government interference, thus fostering a freer and more stable economic system. The quote highlights the ideological divide between those who favor government-managed economies and those who advocate for a system that limits government influence.