He told the CFR that the bond buying program was ultimately a mixed bag. He said that the purchases of Treasury and mortgage backed securities did help lift asset prices and lower borrowing costs. But it didn’t do much for the real economy.

“Effective demand is dead in the water” and the effort to boost it via bond buying “has not worked,” Greenspan said. Boosting asset prices, which aids the already wealthy, however, has been “a terrific success.”

When asked about QE, Greenspan made the unusually frank admission that “the Fed’s balance sheet is a pile of tinder, but it hasn’t been lit … inflation will eventually have to rise.”

In New Orleans, he was asked why central banks still own gold. His answer was encouraging if a little vague, "Gold has always been accepted without reference to any other guarantee." When asked where the price of gold was headed in the next five years he said "measurably” “higher."

Question: “Where will the price of gold be in 5 years?” Greenspan: “Higher.” Question: “How much?” Greenspan: “Measurably.”

He told the CFR that "gold is a good place to put money these days given it's value as a currency outside of the policies conducted by governments."

Fed Ends QE? Greenspan Says Gold “Measurably” “Higher” In 5 Years