Thursday, June 23, 2011

Jim Grant on Bloomberg (6/22/11)

Jim Grant of Grant's Interest Rate Observer was on Bloomberg to discuss Ben Bernanke's upcoming speech.
- QE2 resulted in a weaker dollar, higher gold prices and measured inflation, and weaker economic growth
- A market decline or decline in measured inflation will open the gates to QE3
- Fed's should not target asset prices or inflation rates
- The Fed is trying to impose prosperity by raising asset prices. A sound economy should result in higher asset prices, not vice-versa
- Not getting adequately compensated for the risks that are out there
- The perceived "Peril of Deflation" has lead to massive Fed action and instability
- One unintended consequence: Money Market funds are going to Europe for yield
- We have replaced the Gold Standard with the Phd Standard. The Fed needs to do less
- What is the meaning of the word "money." Quantitative easing is plain debasement

No comments:

Post a Comment