Jim Grant has given another memorable interview to CNBC tonight, discussing the banks’ manipulation of LIBOR, and stating that outrage at the banks for manipulating interest rates should be redirected at central banks, who manipulate everything on a massive scale routinely for a living!
Regarding The Fed’s options going forward Grant stated:
‘The Fed is not out of bullets, the trouble is it’s gun shoots backwards!
These massive interventions in the markets distort the prices we call interest rates. There’s this great scandal with LIBOR- ‘the banks fixed the rates’. The Fed fixes everything! The banks do it opportunistically, The Fed does it for a living, it does it on principle!‘
Full MUST WATCH interview below:
The Fed has Operation Twist by which it manipulates the credit markets. It has QE by which it manipulates bond yields. It has the portfolio balance effect by which it manipulates the stock market.
Grant compares life under the central banks to the fabricated reality experienced by Jim Carrey’s character in The Truman Show.
The thought that these banks are the ones that control interest rates is absurd, the central banks do it all the time!
The central banks manipulate MASSIVELY! Our outrage ought to be directed at them! The Fed, the BOE, the ECB, they all do it, all the time!!
Grant says the Fed manipulates the markets, the yield curve, & the expectations of the market.
The Swiss Central Bank prints $50 billion a month to manipulate the CHF exchange rate- thats 10% of the GDP of Switzerland every month in order to manipulate the exchange rate of the CHF, and yet people are willing to accept yields that are less than zero that are denominated in that very currency!