Jim Grant

I think this is a time where people will look back on us and see it as a period of practically central bank worship.
The central bankers – Draghi, Yellen, Bernanke – have become almost celebrities in America.  People have invested unreasonable hopes in what these central banks can know, and what they can do.   I think that, sooner or later, the investing public will become disillusioned of these ideas….
I dare say that stock prices will not continue to rise uninterrupted at the same pace.  That’s not a very interesting prediction, but the stock market is certainly a cyclical thing.  I think it’s fair to observe that today’s ultra-low interest rates flatter stock market valuations.  Stock prices are partly valued based on a discounted flow of dividend income.  To the extent that the discount rate you use to value that stream of dividend income, which depends on interest rates, is artificially low,stock prices are artificially high.
I think that the burden of proof is on anyone who would assert that we are in a new age of persistently and steadily rising stock prices.

Jim GrantIn this MUST WATCH interview with CNBC, the Interest Rate Observer’s Jim Grant explains why the 2 greatest opportunities for investors right now are Russia & gold. 
Gold, to me is 
a very sound inoculation against the harebrained doctrine of modern central bankers.  If you harbor doubts about the efficacy as do I of five years of monetary printing via quantitative easing & suppressed interest rates, and wonder how this unprecedented experiment is going to pan out, you can do worse for yourself than to hedge (with gold) from an unscripted monetary outcome.”  

Grant concludes that investors should own gold because:  “
It stands to benefit from the demonstrated, as opposed the theoretically likely, crack up of the current monetary arrangements.”
Grant’s full interview on opportunities in Russia & Gold is below: 

20121003_grant_0The Interest Rate Observer’s Jim Grant, one of our personal favorite critics of the Fed, was back at it this week on CNBC, blasting Janet Yellen and the Fed’s long-held doctrines as “Heresies!“. 
Regarding Yellen’s claims that the US economy is improving, Grant eloquently pointed out that she “did not touch on the moral quandary that low interest rates introduce into our country - grandmothers, grandfathers, savers are figuratively on their hand and knees and rooting around in bushes and between sofa seats for lose change on which to sustain themselves.”
Well said Jim, will said.  
Grant’s full MUST WATCH interview is below: 

Jim GrantOn the 100th anniversary of the creation of the Federal Reserve, we present a MUST WATCH historical discussion and debate on the Fed between the Interest Rate Observer’s Jim Grant, and NYU Professor Richard Sylla.  
Has the Fed, as Ben Bernanke said, “come full circle back to the original goal of preventing financial panics?   Or after 100 years, has the Fed nearly entirely destroyed the value of the dollar, to the enrichment of the banksters?
If the Fed was able to effectively control prices the Soviet Union would still be in business… The Fed has presided over the decay of finance, and the degradation of the dollar.  Retrogression in finance can be laid at the feet of the Fed & the regime behind it.  The Fed is the creation of a system of paper money, and socialized & subsidized credit.-Grant
Ironically, before the “debate” concludes, both Grant & Sylla end up harshly criticizing the Fed- particularly over manipulation of asset prices and the stock market in particular.
James Grant (at his finest) & Richard Sylla – The Great Fed Debate is below:

Fed monkeyAhead of the Fed’s December FOMC statement, The Interest Rate Observer’s Jim Grant was on CNBC today debating the effectiveness of the Fed & Bernanke’s QE policy with bankster apologist Steve LIESman.

The Fed has embarked on a dangerous course of monetary manipulation. You’ve said there is no inflation. How about on Wall St.? How about in stocks, bonds, art, Ferraris and farmland? The asset holding portion of the community thinks this is great. You think its great. It is NOT GREAT! The Fed can change how things look, it cannot change what things are!
Grant’s MUST WATCH schooling of Steve Liesman & the CNBC crew on the dangers of the Fed is below:

Jim GrantThere is precedent for a government shutdown,” Lloyd Blankfein, the chief executive officer of Goldman Sachs, remarked last week. “There’s no precedent for default.”
How wrong he is.
Let us face facts: We have defaulted in the past. Let us confront the implied message of the Federal Reserve’s pro-inflation policy: We will default in the future, though no lawyer will call it “default.” And let us preempt the world’s flight from our intangible money by taking steps to fashion a 21st-century improvement. We have the gold and the brains to find the solution.

20121003_grant_0The 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:

20121003_grant_0Jim 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:

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.

grantThe 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 responded2 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:

imagesThe 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:

fireworksThe 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!!

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:

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: