March 30, 2012

Jim Grant: Europe Debt Crisis Means More Money Printing

Jim Grant believes that the ECB is likely to print more money and purchase Italian government bonds.
He then talks about the federal reserve and also says to avoid farmland (in the US) as it is now overvalued in many places and he points out that the current farmland rental yields of around 2 to 2.5%, are the lowest in 40 years.


He is worried that the debt crisis may turn to a currency crisis at anytime. In his opinion all major currencies (USD, EUR, JPY and GBP) are racing to the bottom and it's difficult to see which one will get there first. He is surprised by the euro’s strength even though it is in the spotlight but he believes that it might soon start to weaken as ECB punish its value down by money printing and low interest rates.

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).