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.