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:


Perhaps Grant’s most entertaining response of the interview, when asked why the Bank of England had to go to Canada and Goldman Sachs to find its new Governor in Mark Carney, Grant replied:
If the job description was simply converting gold into bank notes and bank notes into gold at the statutory rate, someone in the UK could do that, and have done that for most of 300 years.   When you have to be a market manipulator, a sidewalk superintendent for all of global finance, when you have to be a propagandist, these are complex jobs, therefore they had to go to Canada.

Comments

  1. That’s not to flattering a decription for Canada, LOL. We have planty of money changers. But When you need a quality thief look to Canada!

    • Hahaha.. What our American thieves aren’t up to it?

      Jim Grant is a straight shooter, he would make a fine treasury secretary.
      He was trying to tell Blondie that the main consequence of financial repression (price fixing) is malinvestment. Companies that should have failed are out there staggering along on borrowed money and time, bleeding to death but never quite dying. Whirlpools of failure that aren’t permitted to fail. They continue to draw investors in via the stock market, to their ultimate doom.

    • “But When you need a quality thief look to Canada!”

      Well, Mom and Dad always said, “Whatever you do, Son, always strive to be the best!”.  It would appear that Canada now has that distinction in the banking world.  ;-)

       ”What our American thieves aren’t up to it?”

      Most definitely not.  For one thing, they keep getting caught with both hands in the cookie jar… more greed than brains, in other words.  Think Geithner and his taxes or Corzine and other people’s money as prime examples. 

    • Well… I have to agree with that! -_-
      The worst part about it is that a lot of Canadian people are not aware that the banks are damaging their country. At least in the USA, Americans are more aware of their situations.

  2. ‘Central bank interventions are going to backfire’

    Why is it that these lauded people get the wrong end of the stick, or maybe they understand completely but are part of the system of control and so pretend not to get it – let’s face it, this is a common thing to say. These interventions have the specific goal of making slaves of all of us who are not protected and of taking total control of the world. THIS IS GOING TO WORK, therefore Jim (if you are willing to learn something OR be honest), you should say …

    ‘Central bank interventions are going to be an outstanding success’

    There, fixed it for ya!

    • Blondy didnt figure out from Grants dismissive, cutting comments that if she didnt speak, she would avoid say anything silly.

    • “Blondy didnt figure out from Grants dismissive, cutting comments that if she didnt speak, she would avoid say anything silly.”

      LOL!  Such is the fate of the brainless among us.  Grant is obviously a man who does not suffer fools,  gladly or otherwise.  I find that not only refreshing but appropriate.

  3. I think the shuffle with Carney to the BOE is all about perception management by Central Planning Inc.  Canada is supposedly a “well managed” country that is doing well.  England is a country that is running into severe problems and has a real credibility problem with it’s status-quo.  It’s amazing to see how the central planners think they can talk down the markets with pure BS the way they do the voting public.

    Watching Jim go head to head with the shills in the mainstream media makes me proud to be part of the Grant clan!

    STAND FAST CRAIGELLACHIE!!

    • In my opinion, the reason why Canada is doing well better than most of the Western countries is because the Canadians have more trust in their currency so they are keeping their savings in Canadian dollars. By that, the banks can control a lot more the Canadians.

  4. In my opinion, the currency war is top of the list. The next Fed Chairman will be a Volcker II. Raise interest rates and allow inflation. They must raise taxes now to lower them later. This is one tentacle of the giant octopus they are manipulating. Two more years of mortgage buybacks by the FED first. QE infinity will sustain stocks. I like 5-9% on stocks next year. Why the delay? Syria is the delay in another tentacle, oil.

    • “Raise interest rates and allow inflation.”

      I am curious as to how this would work.  Raising interest rates always reduces inflation.  That was why Paul Volcker raised the prime rate to 21% back in the early 1980s.  Inflation was bad then, or at least TPTB back then thought that it was, so higher rates were brought on to crush it, which it did, and laid the ground work for an 18 year bull market in stocks.
       

    • Ed is right! Raising interest rates will reduce inflation because it will not allow more investors to take out loans and the loans create inflation as they add more dollars in circulation.

  5. I’m so jealose! I wish I had the perfect mix of eloquence and glib reparte of Mr. Grant.

  6. Jim Grant is one of the most knowledgeable ones around but I miss his bow tie.

  7. So hire someone full of BS to run a bank…. not I know why the world financial situation is toast.

    • Yep… politicians too.  Now that the politicians and the bankers have formed an evil alliance, we have half-breeds running around that we all call “banksters”.  We need a spray of some sort for these critters.  There’s too many to take out individually.
       

  8. If the banks do that, then it will make more investors run away from the US dollar which will make things even worst. More investors will start to buy physical gold and silver as all the other currencies have inflation also.

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