Jim Grant Explains the Gold Standard

A return to a gold standard may not happen by design, but it will inevitably happen again--as it always has throughout history. Paper money experiments always eventually fail. 

https://mises.org/blog/jim-grant-explains-gold-standard

If You Want To Make Money, Go To Scary Places: Jim Grant

https://youtu.be/V4PNe6NTuBg

Jim Grant: Still Bullish On Gold; Says Fed In A Hurry To Raise Rates

This is another way of saying "buy the dip(s)."

http://www.zerohedge.com/news/2015-07-24/jim-grant-gold-mr-market-having-sale-vexing-wonderful-opportunity

Jim Grant's November 2014 speech at the Cato Institute

 

"What will futurity make of the [so-called] Ph.D. standard [that runs our world]?
Likely it will be even more baffled than we are. Imagine trying to explain the present-day arrangements to your 20-something grandchild a couple of decades hence - after the crash of, say, 2016, that wiped out the youngster's inheritance and provoked a cenral bank response so heavy-handed as to shatter the confidence even of Wall Street in the Federal reserve's methods...
I expect you'll wind up saying something like this:

"My generation gave former tenured economics professors discretionary authority to fabricate money and to fix interest rates.

We put the cart of asset prices before the horse of enterprise.

We entertained the fantasy that high asset prices made for prosperity, rather than the other way around.

We actually worked to foster inflation, which we called 'price stability' (this was on the eve of the hyperinflation of 2017).

We seem to have miscalculated."

- Jim Grant

Jim Grant: "Gold Is Nature's Bitcoin"

http://www.zerohedge.com/news/2014-02-11/jim-grant-gold-natures-bitcoin

Jim Grant - The Fed Is A Danger To The U.S. & To The World

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/29_Jim_Grant_-_The_Fed_Is_A_Danger_To_The_U.S._%26_To_The_World.html

Jim Grant - The World Will Witness Extreme Monetary Disorder

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/27_Jim_Grant_-_The_World_Will_Witness_Extreme_Monetary_Disorder.html

Jim Grant Says Monetary System Won’t Last & Gold Bullish

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/24_Jim_Grant_Says_Monetary_System_Wont_Last_%26_Gold_Bullish.html

Jim Grant on the Debt-Ceiling Debate

Truman Show, Jim Grant, Gold & Economies Close To Meltdown

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/11_Truman_Show%2C_Jim_Grant%2C_Gold_%26_Economies_Close_To_Meltdown.html

Gold, Jim Grant, Bernanke, Draghi & A Collapse In Confidence

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/8/27_Gold%2C_Jim_Grant%2C_Bernanke%2C_Draghi_%26_A_Collapse_In_Confidence.html

Market rigging gets too obvious even for Bill Buckler and Jim Grant

http://www.gata.org/node/11198

Must Read: Jim Grant Crucifies The Fed; Explains Why A Gold Standard Is The Best Option

http://www.zerohedge.com/news/must-read-jim-grant-crucifies-fed-explains-why-gold-standard-best-option

Jim Grant Says All The Things That Ben Bernanke Avoided During His Press Conference, And Much More

http://www.zerohedge.com/article/jim-grant-says-all-things-ben-bernanke-avoided-during-his-press-conference-and-much-more

Jim Grant - US Will Resolve Debt by Returning to Gold Standard

I've referenced Jim Grant's Interest Rate Observer newsletter many times, because he is well-read on Wall Street, and is an icon on the Street.  Not all institutional investors are sheep. 

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/4/14_Jim_Grant_-_US_Will_Resolve_Debt_by_Returning_to_Gold_Standard.html

Inflation is already here

http://whiskeyandgunpowder.com/inflation-is-already-here-with-lots-more-to-come/

Jim Grant, the host and editor of the excellent newsletter Grant’s Interest Rate Observer, said: “Don’t you sometimes get the feeling that the economists are pulling our leg? A bartender would call it watering the whiskey.”

Don’t pay attention to that thing called the Consumer Price Index, or CPI. It is running at about 2%. It is an engineered figure and not to be trusted. Oskar Morgenstern, who along with John von Neumann contributed so much to game theory, once described it as a “mere index of doubtful validity,” as Grant relayed.

Nonetheless, on the basis of this suspect fluff, the Fed tells us inflation is under control. In fact, it is complaining that the inflation rate may be too low. As Grant quipped, “That’s like the New York Police Department complaining about the lack of crimes.”

Bernanke would have us believe the Fed can calibrate inflation within tolerances of 100 basis points. But it way overestimates its powers. Once the inflation train gets going, it will be very hard to slow down. One day, the Fed will wish inflation were only 2%.

Jim Grant Accuses Fed Of "Lethal" Intervention And Manipulation Of US Economy

http://www.zerohedge.com/article/jim-grant-accuses-fed-lethal-intervention-and-manipulation-us-economy

Jim Grant believes QE 2.0 is coming

Thanks to my friend Dick for spotting this interview. I've been positing all alone more quantitative easing by the Fed (i.e. printing more money) is built into the cake.



http://www.youtube.com/watch?v=9v-uHPtFfc0&feature=player_embedded

http://www.zerohedge.com/article/jim-grant-confident-qe-20-just-around-corner

Grant's thoughts on new Fed additions:

"I think the first order of business will be to try once more to print enough dollars to make something happen in the U.S. economy.”

On San Francisco Fed President Janet Yellen:

“Janet Yellen has had 36 opportunities to vote on monetary policy at the Federal Open Market Committee and she has voted ‘Aye, yes’ 36 times. 36 for 36 times. Now, has the Fed been right 36 consecutive times? No. I think that Janet Yellen is a well credentialed, consensus-hugging economist straight out of the Fed HR department. She is ideal from the point of view of the Fed bureaucracy. She will make not one ripple.”

On MIT economist Steve Diamond and Maryland state banking regulator Sarah Bloom Raskin:

“I’ve never met them but I suppose they are charming. They certainly are well credentialed. They may well have an avocation in monetary theory, but that is not their vocation. Their vocation, in the case of Professor Diamond, is fiscal policy, pensions, social security, he is an authority. He's mentor of Ben Bernanke so he’s a formidable academic.”

"Sarah Bloom Raskin is a formidable regulator. But neither is a formidable thinker about the nature of money or about the history of money or about how the Fed might paradoxically make things worse by doing what it does trying to make things better, which I think is the great question. These are people who, I think, are unlikely to oppose novel solutions to our fundamental monetary dilemma which is that the U.S. dollar is a faith-based currency of no intrinsic value that is manipulated by the Fed and the consequences of the manipulation are often quite different from what was intended. That’s the problem."

On Fed monetary policy:

"Deflation is a funny thing. It's a word that is much in the news, much in the markets, but is all too infrequently to find. So the Fed says that deflation is broadly declining prices. But could not also be progress? In other words, if the world produces more at lower prices, is that so bad? Americans spend half of their weekends, it seems, looking for bargains.”

"So what I blame the Fed for, among other things, is a lack of intellectual rigor and forthrightness."

On Federal Reserve Chairman Ben Bernanke:

"I think this is not being forthcoming with us, the people, about the nature of his concerns."

"In 2003, he was all deflation all the time. Well now the Cleveland Fed's median CPI was like 1.7 percent year-over-year, now it's 0.5 percent year-over-year. So where is the concern?"

"I think the concern will surface. We'll see more on Friday when the CPI comes out. But I think something ahead of the markets is a likelihood of the Fed stepping on the gas once more, so called quantitative easing - I think that's likely to happen…The Fed is already clearing its throat. You can see this in the newspaper leaks."