Jim Grant: We Should LOWER The US Debt Limit, Not Raise it Again!

Jim Grant was back on Bloomberg today with Deirdre Bolton discussing the Fed’s QE∞ policy, and the MOPE that the Fed will end QE by the end of the year.

Regarding the impending discussion of raising the US Debt ceiling once again, Grant states:

It’s important that we lament our debt and debate the $16. something trillion that constitutes the gross debt because there are no more checks on its growth other than civil and informed discussion.  
We used to have a gold dollar, and since there is only so much gold, there could only be so many dollars.  That’s gone. 
We used to have an interest rate structure that constrained public debt because it became prohibitively expensive to borrow at rates of 6 and 7%. 
We borrow now at 2%.  If rates jumped to a measly 4% we would be spending as much on interest as on Medicare!  The distortion of interest rates thanks to the Fed’s actions has seduced us into a most dangerous complacency in regards to the debt.   Rather than raising the debt level, we should lower it by a symbolic $1!

Jim Grant’s full MUST WATCH interview is below: