Jim Grant on the Gold Standard and the Fed’s Hall of MirrorsHere is ever sensible James Grant being very patient in discussing the gold standard, the Fed, Paul Krugman, inflation, and deflation with Bloomberg’s Tom Keene. His interviewers throw every argument against the gold standard and he gently leads them to the truth about gold. Interviewer Sandra Eisen seems to be the fountain of contemporary failed wisdom. Enjoy!
5 comments to Jim Grant on the Gold Standard and the Fed’s Hall of Mirrors |
||
|
© 2013 The Daily Capitalist - Nothing in this blog should be considered to be investment advice. The opinions expressed herein are those of the author and not necessarily those of The Daily Capitalist. The Daily Capitalist is published by Montecito Analytics, LLC. All Rights Reserved. |
||
Bernanke and his Hall of Mirrors: http://pic.twitter.com/wkPoc0M2
While most market participants and anti-LSAP activists still focus on the possible threat of (hyper)inflation caused by chinook-loads of liquidity, they ignore the deflationary, yield eating monster created by Liberty Street which is lurking in the limitless ocean of treasury bonds waiting to feast on the next future broker or pension fund. To make matters worse this might not be the only threat to the future of the world as we know it. Through chronic POMOs and his beautifull engineered ZIRP-environment the Chairsatan himself achieved to create a monstrous hall of mirrors as the bow tie sporting Jim Grant puts it. By distorting supply and demand via mad balance sheet expansion the Bernank created the mother of all traps by killing the basis of free markets and the only instrument that yields truth in a world of lies: Price. Buckle up for the ultimate blind ride through a storm of false signals – CBs have lost control and the process of disengagement has already started. The horsemen are marching, and once they apply the axe on the last remaining entity of hope there will be blood.
So exactly how and when can I vote Jim Grant in office as Chairman?
The politics of posturing. I guess there’s significant support for sound money. The political class are jumping on it for votes. Won’t happen, folks, not from a top-down point of view even if the ole boys love it because the implementation must come from an organic process that’s graduated and only the market can accomplish this. Can you image the sudden destruction of the dollar on the basis of a top-down proclamation ? Ka-boom ! We must be wise as serpents on this so the gold standard, now that gold floats in real-time, will be a bottom up approach and has been since the mid 1990′s. As gold climbs higher in price, grass roots monetization will become progressively more popular. Gresham’s Law is reversing on the back of rising bullion values. GL was predicated on FIXED bullion value. The age of real-time information might just save our bacon. You cannot pour new wine into old wineskins
I prefer the analogy of a meth addict to that of the punch bowl. Meth is a stimulant, not a depression like alcohol. Those who use it habitually feel good for a while but their bodies rapidly deteriorate. Withdraw is painful for a little while but not nearly as bad as continued abuse.
[...] Jim Grant on the Gold Standard and the Fed’s Hall of Mirrors (dailycapitalist.com) [...]