James Grant, Grant’s Interest Rate Observer, explains why he thinks the Federal Reserve’s new bond-buying program will do more harm than good, saying the U.S. Treasury should begin to issue longer-dated bonds backed by gold, with CNBC’s Kelly Evans. Here is the direct link.
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Jim Grant nails it with his remark on capitalism. I agree with him totally (which is also why I lost almost all respect for Michael Moore, whose anti-establishment message lost all credibility when he turned a potentially powerful film about greed, fraud and cronyism into a fatuous polemic against capitalism).
All those who think capitalism caused the financial crisis don’t have a clue. More than anything else it was caused by fraud and theft––pure and simple. We do not have real capitalism in the US––or just about anywhere else, for that matter. We have a kleptocracy.
At the heart of capitalism is freedom. Those who are being led to believe that capitalism caused the crisis are being manipulated into dismantling their own freedoms.
Wrong !
1. QE3 WILL be implemented. No matter what one idiot called J. Grant thinks or does.
2. it will reinforce the existing trends:
– Yields on bonds going MUCH lower (blow off style)
– gold going much higher (blow off style)
3. And that will mark the end of the 30 year bull market in government bonds and the 10/12 year bull market in gold.
Mr. Market WILL do what it always does. Follow it own course, no matter what the FED does. The FED only can reinforce or slow down a trend.
James Grant has never understood what drives interest rates higher or lower. E.g. in may 2009 he thought government bonds were in a bubble. Yet interest rates went lower after 2009.
The bond market is no longer market driven. It’s been taken over by the Fed in collusion with the banks. Who actually believes that inflation is only 2%? Maybe only the fools who actually believe the Fed.
Fascinating interview. As usual, CNBC aka Criminal Network Business Channel totes out the lovely Kelly Evans with her triple strand white pearls, comely bedroom eyes and lush lips to distract the incredibly intelligent James Grant but he doesn’t get foiled (drat!) You have to admit Grant is insanely brilliant and very adept with the English linguistics etc. He is also unfortunately prescient about whats coming down the pike for all of us who don’t pay attention, behave and act accordingly.
And the comments on this and other parts of JD’s blog are also fascinating and mindfully intelligent. Its great this is one of the worlds worst kept secret! Ssshhh, don’t tell a soul!
Currently, the more the FED tries to re-inflate/prop up the stockmarket (bubble) the more interest rates will drop. To understand this one has to know how to correctly connect the economic dots.
Yes, the FED is manipulating/distorting markets but that simply won’t change the course Mr. Market will take. It only reinforces the current trend (driving rates down) like the FED reinforced in the late 1970s the trend (rising interest rates) as well. Confusing ?? Not for someone who’s able to connect the economic dots correctly.