January 31, 2014

JIm Grant: "Fed Has Fingers & Thumbs On The Scales Of Finance," - "Will End Badly"

Jim Grant explains to an almost stunned into silence Rick Santelli how we all "live in a valuation hall of mirrors" as the Fed manipulates everything. Thanks to it's "fingers and thumbs on the scales of finance," Grant continues, the Fed "insists on saving us from 'everyday low prices'" - what they call deflation - and by doing so it manufactures "redundant credit" which "does mischief" in and out of markets. Grant, ominously concludes, "there is no suspense as to how [this will] end... [it will] end badly."



James Grant originated the "Current Yield" column in Barron's before founding Grant's Interest Rate Observer in 1983. He is the author of five books, one of which is Mr. Market Miscalculates (Axios Press, 2008).

January 28, 2014

JAMES GRANT: ‘ONCE WE HAD THE GOLD STANDARD. TODAY WE HAVE THE PH.D. STANDARD’

Writing in the Wall Street Journal this weekend, Jim Grant, outspoken free-marketeer and author of the popular financial publication Grant’s Interest Rate Observer notes: “Do you itch to know whether stock prices and interest rates will rise or fall? Whether the U.S. economy will sink or swim?

Read on to find out what happened to them: http://online.wsj.com/news/articles/SB10001424052702304591604579289330976748834

James Grant originated the "Current Yield" column in Barron's before founding Grant's Interest Rate Observer in 1983. He is the author of five books, one of which is Mr. Market Miscalculates (Axios Press, 2008).

June 17, 2013

Jim Grant On Gold's Recent Drop: "Confidence In Bernanke Is Utterly Misplaced"


On Inflation: Inflation is a state of affairs in which there is too much money. It's not too much money chasing too few goods. It's too much money, the thing that this money chases is variable. And in this particular cycle and for some time, it has chased commercial real estate, bonds, stocks, financial assets of all kinds. Iowa farm land. There is a huge excess of liquidity in the world. Central banks furnish this, they stuff us with it. In the interest of levitating markets that will, they think On the Equity rally: Yes there are terrific companies generating terrific cash flows. That is certainly true. But beneath the surface of things or not so far beneath the surface of things, as far as central banks, practicing not original policies but original sin. This is these policies are not so original. They go back to the time of Revolutionary France. You know the idea of creating currency with which to create human happiness is as old as the hills. On Gold: Gold has been in a bull market for 12 years. Gold is this rare thing in which you can be bullish and yet contrary and also with the trend. There is I think a general fatigue animus towards gold. The gold prices are reciprocal of the world's view of the competence of central banks. The greater the world's confidence in the Ben Bernanke's of the world, the weaker the gold market. The less the world holds confidence in the institution of managed currencies, the stronger the gold market. And to me the confidence is utterly misplaced.

 James Grant originated the "Current Yield" column in Barron's before founding Grant's Interest Rate Observer in 1983. He is the author of five books, one of which is Mr. Market Miscalculates (Axios Press, 2008).