Alan Greenspan, the chairman of the United States Federal Reserve, has delivered a rather splendid kick in the orbs to the pro-€uro/anti-sterling campaign. Greenspan said whilst speaking in the City of London (London’s powerful financial district):
The City of London is thriving outside the eurozone and has not suffered from Britain’s decision not to join the single currency in the first wave […] and was a sterling place to do business. London has stayed on top in the provision of financial services despite the euro…
Now I am no fan of the whole concept of central banking (and hence no fan of central bankers) but the fact is it would be bonkers to deny that Alan Greenspan is probably, hell, certainly, the most influential voice on the subject of economic affairs alive in the world today. His remarks are therefore going to cause some gnashing of teeth in certain circles, which has to be a good thing, as the pro-€uro campaign is predicated upon turning the abolition of sterling from a constitutional issue into a purely practical economic issue… and thus having Greenspan point out that Britain is managing just fine outside the eurozone is not what Brussels’ fifth column in Britain want to see splashed across UK newspapers.
Ah, but you should have seen the size of the one that got away. It was this big I tell you!
Of course if you absolutely must have a central banker, you could certainly do worse than an Ayn Rand protege…
Now I am no fan of the whole concept of central banking
Neither is Greenspan. Ever read “Gold and Economic Freedom”? In fact, his policies at the Federal Reserve have been fully consistent with his 1981 essay on restoring the gold standard.
Unfortunately, Greenspan can’t make the U.S. adopt the gold standard by fiat — Congress has to approve the change. So we’re stuck with central banks. But he’s one central banker I am fond of.
Greenspan looks like he’s being held up. Someone send Adriana and her Uzi to the rescue!