The Interest Rate Observer’s Jim Grant was back on CNBC Tuesday, again discussing the manipulation of interest rates and The Fed. When asked by Maria whether The Fed is getting ready to stop QE this summer, Grant responded that “they’re just getting into it!”
On gold, Grant stated: I’m still bullish, gold is THE ALTERNATIVE to Central banking! It’s the way to get short Central banks! The single fundamental of the gold market is aggressive, unprecedented money printing and the institution of managed currency. As long as that remains in place, you are compelled to look at an alternative to Central Banks if you are serious about retaining the money you’ve earned, the principle alternative to Central banks is the ancient monetary asset they can’t create!
Jim Grant’s full interview on the Fed & gold is below: [Read more...]
Jim Grant: Gold is the Alternative to Central Banking & the Way to Short the Fed!
Jim Grant: Cyprus Fired A Warning Shot Across The Globe- Your Money is Not Really Yours if its Needed by the State!
Jim Grant was back on CNBC comparing the ticking shot-clock in a March Madness game to the artificially low interest rates via manipulation by the Federal Reserve, allowing the Fed to stall the game without any real recovery.
Grant also discusses his belief that the problems in Cyprus cannot be contained, and stresses the point that Your money in the Western banking system is not really yours if it is needed by the state!
Grant goes on to state that This is the greatest and most perilous experiment in the history of paper money! and This will end in immense destruction of wealth!
Full interview is below: [Read more...]
Fed To Prompt Currency Crash and Return to Gold Standard
Jim Grant, astute monetary economist and respected author of the Interest Rate Observer said in a Bloomberg interview overnight that the dollar would crash and a new Gold Standard would be the end result of the U.S. Federal Reserve’s irresponsibilities. Although the interviewer said that Grant’s remarks were inflammatory Grant said that it is important to examine our monetary affairs over the sweep of time.
A guest host said that no one in academia is calling for a Gold Standard and suggested it would result in a deflationary period for the U.S. Grant disagreed and said that the Gold Standard is the only answer as it was monetary system good practice for the 100 years ending in 1914, whereas everything else since has been a “try out”.
Grant says that he expects more quantitative easing from the U. S. Fed, and likens their single mindedness to a doctor prescribing to a patient that is clearly overmedicated. [Read more...]
Jim Grant: Fed Action Will Prompt Return to Gold Standard!
The Interest Rate Observer’s Jim Grant was on Bloomberg yesterday discussing the recent Fed minutes. When asked by Bloomberg what will be the end result of this Fed’s responsibilities, Grant responded: A gold standard.
When asked when he envisions a gold standard occurring, Grant responded: 2 years ago. It’s important to see our monetary affairs over the sweep of time. The Fed was founded 100 years ago this year. There have been many monetary moments since then. 1944 comes Bretton Woods, but we will have they said a dollar that is backed by gold. Fast forward to the present day and we have gone from the half gold standard, the road show gold standard of Bretton Woods to the full blown PhD standard, in which the Ivy League central bankers the world over are waging an all-out war against the price mechanism, against Adam Smith’s invisible hand.
The gold standard is the answer because the gold standard is the only monetary system that has been shown to work in practice over the course of generations. Everything else has been a tryout, and the tryouts have failed.
Grant’s full MUST WATCH interview on the coming return of the gold standard is below: [Read more...]
Jim Grant: The Monetary Revolution is Devouring It’s Children!
The biggest critic of the Fed this side of Ron Paul was on CNBC today discussing global Central Bank currency devaluation.
Grant states that Western Central bankers are attempting to out print the Bernank himself:
Central Banks the world over are going from ease to hyper-ease, and people we thought were extremely radical in their monetary predilections like Bernanke are about to be out-flanked by others still more radical! So the monetary revolution is devouring it’s children!
Grant states that the Fed is at war on the price mechanism: The Fed will not acknowledge that it is suppressing prices, that what it is doing is a species of price controls. Interest rates are prices, and the Fed is manipulating them at the level, & they’re manipulating them on the yield curve!
Regarding the future of QE, Grant states that: The Fed’s hand will be forced by circumstances. The Fed seems to think that it is in control of events, when in fact events will be in control of the Fed.
Jim Grant’s full MUST WATCH interview is below: [Read more...]
Jim Grant with Lauren Lyster: Fed’s Price Controls of Interest Rates Will Fail with Fireworks!
The lovely Lauren Lyster, formerly of Capital Account and now the new host of Yahoo’s Daily Ticker, interviewed SD’s favorite Fed-basher Jim Grant regarding the Fed’s latest FOMC statement.
Grant stated that if creating credit was able to successfully reactivate business activity the world would have been richer many generations ago, that the Fed’s actions are counter-productive, that QE funds injected into the economy is money in search of mischief, and that Bernanke’s manipulation of interest rates will fail spectacular with major fireworks as the price of interest rates find their own free market valuation.
As always, Jim Grant’s interview is a MUST WATCH!! [Read more...]
Jim Grant: Honey, I Shrunk the Yield Curve!!
There is no question that yields have been eviscerated by Fed policy, but is it the result of Fed policy past or present? Is it the current presence of the Fed in the bond market that is keeping rates low, or was it the Fed’s accommodative monetary policy during the boom years and the subsequent urge by the private sector to relieve itself of overpriced assets in the bust that has kept yields from rising? In either case, we find fault with the Federal Reserve. It seems the Fed can now claim this: “Honey I Shrunk the Yield Curve!” Only in this scenario, policy wonks in control of the “shrink ray” seem hardly concerned about our new microscopic interest rates. If anything, the lower they go, the more the Fed may print, forcing a new class of indentured investor out to scavenge for more yield on the front lawn. We talk to Jim Grant, founder and editor of “Grant’s Interest Rate Observer” and author of “Mr. Speaker!”, about the recent announcements from the Federal Reserve. [Read more...]
Jim Grant: Massive & Unprecedented Central Bank Interventions Are Going to Backfire!
Bloomberg has released an excellent interview with one of our favorite market commentators (and perhaps the harshest and most vocal critic of the Fed outside of Ron Paul), Jim Grant.
Grant eloquently informed Bloomberg that there are no markets anymore, only interventions:
There is a systematic manipulation of values carried out by our central banks world over. They sit on money market interest rates, they muscle around the yield curve, and they levitate asset prices on the theory that higher stock and corporate bond prices will make us happier and more inclined to spend.
When Bloomberg’s blonde responded by asking, What’s the harm? Grant responded:
We haven’t got enough time to go through every item of harm.
Grant does go on to inform the Bloomberg hosts what he expects as a result of market manipulation/intervention to infinity by the Western Central Banks: I am expectant that these massive and unprecedented central bank musclings and interventions are going to backfire in the shape of inflation and higher interest rates.
Grant’s Full MUST WATCH interview below: [Read more...]
Jim Grant: ‘We Are in a PhD Standard’
Forget the gold standard, Jim Grant told CNBC this morning that we are off the common-sense-mandate and in a PhD-Standard.
Grant informs the CNBC MOPEers that what we need is not more worthless acronym programs from the PhD’s at the Fed, but rather a return to free market capitalism where markets are allowed to clear.
Obviously allowing the markets to clear would mean housing and TBTF banks along with their worthless derivative mountains price to reality rather than to BS model, something the Fed is attempting to avoid like the plague.
Full MUST WATCH interview below:
Jim Grant offers his Observations on QE to Infinity and the Great Levitation!
Welcome to Capital Account. The Fed was once credited with what came to be known as “The Great Moderation.” Decades of remarkably strong and steady economic growth coupled with persistently low inflation. However, when looking at today’s era of Fed policy, would this best be described as “The Great Levitation?” Our guest, Jim Grant, founder and publisher of Grant’s interest rate observer, talks about the global unintended consequences of Federal Reserve policy post-QE3 or better yet, “QE to infinity.” Could we finally get that runaway inflation that bond bears have been screaming about?
And as the Eurozone crisis reportedly spooks the markets, Germany continues to be the thorn in the side of the money changers. Germany’s finance ministry said leveraging the ESM to $2 trillion is not realistic. Also, after the Bundesbank voted against unlimited bond buying, President Jens Weidmann gave a speech warning about money printing, plugging gold as a medium of exchange. We talk to Jim Grant about what might have motivated his speech. [Read more...]
“How High Can Gold Go?” “There Is No Telling” James Grant Tells CNBC
Gold is consolidating near record highs in the euro and is less than 1% below the record intraday high from just over a year ago on September 9th 2011. One of the most astute financial analysts in the world, Jim Grant, founder of highly respected Grant’s Interest Rate Observer, was asked by Maria Bartiromo on CNBC yesterday “how high can gold go”? Grant responded that “there is no telling.”
Grant was asked about the stock market and where to invest today and asked if “you want to get in front of this train?”
He responded by advocating “security analysis” and said that he thinks that that is “where an investment in gold and silver comes in”. [Read more...]
Jim Grant: We Are All Bernanke’s Lab Rats in the Land of Speculation & Manipulation!
Our favorite critic of the Federal Reserve Jim Grant was back on CNBC today discussing the consequences of QEternity.
Grant stated ‘there are always unintended consequences for interventions. Those consequences are now always what they intend. At Jackson Hole a few weeks ago, Bernanke enumerated 4 possible pit-falls for what they are up to.
There are 400 million possible pit-falls!‘
Grant states ‘we are lab rats in the financial markets‘ and ‘We are all living in a land of speculation and manipulation!‘
He goes on to discuss Bernanke’s arch-nemesis (the one NOT named Ron Paul) gold and silver, stating:
‘Central banks are bound and determined to debase their currencies. The best thing about gold is that it’s got no P/E multiple. Gold is a speculation on an anticipated macroeconomic outcome, the systematic debasement of currencies by central banks. They’ve done QE3. Why wouldn’t they do QE4? What intellectual argument do they have against doing it again, and again, and again?‘
This is what we’ve stated for several years Jim, and why QE will continue to Infinity…AND BEYOND!! until the point Bernanke pulls the last tool out of his toolbox and implement GOLD REVALUATION!
Full MUST WATCH interview below:
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