Q&A With Jim Grant: Look For "QE 3 Through QE N"

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Sun, 05/22/2011 - 15:00 | 1300285 falak pema
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QE-3 is like Fukushima with three reactors down...good luck..

Sun, 05/22/2011 - 15:26 | 1300330 spiral_eyes
spiral_eyes's picture

qe infinity is a house of cards. inflating the economy to catch up with crashing equity and real estate prices, and living off borrowed prosperity from china, mena, & the productive world will work out fine, until it doesn't. and then it will sink into the ground like a rock. trust in the treasury ponzi is eroding, as the tidal wave of laziness, stupidity and compound interest crashes down. 

Sun, 05/22/2011 - 16:48 | 1300454 IdioTsincracY
IdioTsincracY's picture

That is bad ... however in the past, wages heve kept up  at least partially ...

now we have big inflation, but wages and benefits are going down (fast!), and unemployment is rampant ...\

wow!

Mon, 05/23/2011 - 12:48 | 1302224 cranky-old-geezer
cranky-old-geezer's picture

... inflating the economy to catch up with crashing equity and real estate prices ...

... inflating STOCKS while the rest of the economy crashes ...

There, fixed it.

... and living off borrowed prosperity from china ...

... and living off PRINTED MONEY from THE FED ...

Fixed that one too.

Sun, 05/22/2011 - 15:58 | 1300379 max2205
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Oops Mish hates us.... :(

Sun, 05/22/2011 - 16:04 | 1300385 Popo
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Nah.  He just called bullshit on Ilene's conspiracy theory crap re: DSK.   

No one with a clue would deny that ZH has been *the* blog for financial news over the past couple years.   I think Mish (and many others including myself) have begun to notice a slide in standards by some of the newer writers that ZH has given posting rights to.

I for one am growing increasingly tired of reading lightweight fluff, half of which is an ad for some newsletter subscription.   Why Tyler gives these people with nothing to say (I'm looking at you Phoenix Capital Research) posting rights is beyond me.

But I still read ZH about 10 times a day.   :)

...and it's still the blog I turn to first.

Sun, 05/22/2011 - 17:01 | 1300450 Dejean Splicer
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Everything that that silly bish writes about is 3 day old rehashed ZH articles. (Ilene). Philz stock crap is not a for profit business? Tyler should line them all up (including Creggie Milton), make them dig a deep hole somewhere in the woods and one-by-one shoot them in the in the back of the head. All of them! Except for GW.

Sun, 05/22/2011 - 22:22 | 1300990 DK Delta
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Mish is a great complement to ZH

Sun, 05/22/2011 - 16:25 | 1300413 duncecap rack
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I like reading Mish but the article he took exception to was quite good I thought. The reasons for the harsh treatment of DSK  were quite reasonably argued. I bet the article makes it to thingsthat make you go hmmm and Jesses cafe americain. I will be interested to see if it is tn those places.

Sun, 05/22/2011 - 16:46 | 1300449 Atomizer
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I'm truly happy that you read Mish too. When flipping a coin & guessing, sometimes it's easier to read the odds.

Rigging French Elections: The “DEATH BY MEDIA” of Dominique Strauss Kahn

I don't endorse this site, just pull needed info to see the next stage of events.

Sun, 05/22/2011 - 18:01 | 1300564 max2205
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IMO JG has drank some kool aid if he thinks Ben controls the market (longterm). I was astounded when he said Ben owes those who bought in some consideration. Flabbergasted

Sun, 05/22/2011 - 16:34 | 1300423 Al Gorerhythm
Al Gorerhythm's picture

QE-3 is like Fukushima with three reactors down...good luck..

So true, it won't be reported on either. I'm guessing all's good, gauging by the silence in the press. 

Mon, 05/23/2011 - 00:43 | 1301164 Tail Dogging The Wag
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Like Jim Rickards, I call it Perpetual QE and this is why you should keep on reading...

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Sun, 05/22/2011 - 15:05 | 1300289 Nevermind
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Phi Beta Kappa from Harvard. Princeton Professor. The man who knows more about Central Banking than any other person on earth. He saved the world. Bernanke cannot be wrong. Just ask him. 

Sun, 05/22/2011 - 15:30 | 1300341 spiral_eyes
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the underlying fundamentals of the american economy are so bad, bernanke has little choice but do what he's doing and fucking pray. the other choice would have been to take the pain in 2008, let the banks fail and the ponzi fall. but bernanke likes his office, dc likes hookers, rent boys and cocaine, the imf, and reits. they're doing all they can to hyperextend their party.

 

zoellick and his faction will be left to pick up the pieces, re-institute the gold standard, and get america manufacturing again. now if only they would let ron paul be president... but they won't go that far.

Sun, 05/22/2011 - 15:06 | 1300296 plocequ1
plocequ1's picture

The fed will print money. I knew that and im a fucking idiot. This phony pro and con bullshit is all fucking theatrics. QE will continue. 

Sun, 05/22/2011 - 15:11 | 1300303 Mountainview
Mountainview's picture

And the Dollar will find it's intrinsic value...the value of paper...

Sun, 05/22/2011 - 15:55 | 1300378 Tunga
Tunga's picture

If it didn't grow on trees it would only cost $5 to dig it out of the ground. 

Sun, 05/22/2011 - 17:37 | 1300523 akak
akak's picture

And the shit is fucking everywhere!

Sun, 05/22/2011 - 15:08 | 1300300 Alcoholic Nativ...
Alcoholic Native American's picture

We need more generous anonymous billionaires buying treasuries.  We can't count on Ben and his shareholder buddies to keep funding us forever.

Sun, 05/22/2011 - 20:51 | 1300869 Max Hunter
Max Hunter's picture

We need trillionaires..

Sun, 05/22/2011 - 15:10 | 1300301 Tense INDIAN
Tense INDIAN's picture

and that means get as much SILVER as possible after this Bear market for silver is over...

 

and gold too..

Sun, 05/22/2011 - 15:20 | 1300326 Sudden Debt
Sudden Debt's picture

When the dollar and the euro will go down to dust, gold and silver will be all that remains.

Any new currency that will be created in the aftermath will not be trusted for years even decades to come.

And to meet the need of money worldwide, that's a lot of gold and silver that will be needed. A lot more than exists today. If the dollar and the euro where to go down, gold and silver will be worth 100 times a much as they do today.

 

Sun, 05/22/2011 - 16:14 | 1300403 Dapper Dan
Dapper Dan's picture
Gold, silver coins now to be legal currency in Utah By JOSH LOFTIN
© 2011 The Associated Press May 22, 2011, 2:59PM

Read more: http://www.chron.com/disp/story.mpl/ap/nation/7576264.html#ixzz1N79DRXpI

Sun, 05/22/2011 - 16:33 | 1300428 Al Gorerhythm
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When does Obama strike?

Sun, 05/22/2011 - 16:56 | 1300463 Dejean Splicer
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"Craig Franco hopes to cash in on it with his Utah Gold and Silver Depository, and he thinks others will soon follow.

The idea is simple: Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings."

Let me hold your gold and silver, yea right. Mmmmk.

Sun, 05/22/2011 - 15:10 | 1300304 aerial view
aerial view's picture

agree with you Jim about more QE. What other choice do they have that will not crash the economy? With the reserve currency, worldwide military bases and control of much of the world's oil, they can do what they want even though they clearly know that the middle classes' standard of living will continually decline-but hey, an imperialistic govt is here to serve the rich while enslaving everyone else.

Sun, 05/22/2011 - 15:12 | 1300308 TorchFire
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The physical fruits of the world are but vehicles for the elite. Constantly on the prowl for their favorite prey to inflate, the tsunami of fiat will flow from TPTB to inflate any victim (tangible matter) they believe can contain the evidence of their crimes for a season.  Stash the paper anywhere and everywhere to justify "growth" at all costs....otherwise the shackled audience of blood dolls will feel the cold steel on their ankles and come to realize the constraints are but a mist.

 

Sun, 05/22/2011 - 15:51 | 1300371 Billy Shears
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poetry, sheer, poetry!

Sun, 05/22/2011 - 17:14 | 1300486 TorchFire
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Want poetry?

 

Alas we have come to this

as we peer into the abyss

carved with 10 trillion tears

poured forth for 98 years

 

For behold they did beguile

with their scheming on Jekyll Isle

and with greed they did collude

to establish our servitude

 

With malevolent power dispensed

their tyranny fully commenced

and evil their heirs refined

have made the people blind

 

But look deep in the pit and see

there are legions who WILL breathe free

and Liberty will raise a sharp edge

with the sword of Zerohedge

 

(10 mins of reflection. I could go on and on....)

Sun, 05/22/2011 - 19:07 | 1300679 falak pema
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good stuff torch..thanks

Sun, 05/22/2011 - 19:31 | 1300715 JR
JR's picture

Really good!! “with the sword of Zerohedge...” And “nobody can deny…and so say all of us.”

TorchFire, ZH’s poet laureate.

Sun, 05/22/2011 - 19:34 | 1300724 JR
JR's picture

“What is the matter, my friend?" Dionysius asked. “You seem to have lost your appetite.”

“That sword! That sword!” whispered Damocles. “Don’t you see it?” …

Sun, 05/22/2011 - 22:38 | 1301015 TorchFire
TorchFire's picture

+1 Nice touch with the Damocles reference!

Sun, 05/22/2011 - 19:59 | 1300768 tired1
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The Razor Edge of ZeroHedge - An Epic of Tyler's Mission

Sun, 05/22/2011 - 15:53 | 1300375 blindman
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!!

Sun, 05/22/2011 - 16:54 | 1300457 Dejean Splicer
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"otherwise the shackled audience of blood dolls will feel the cold steel on their ankles and come to realize the constraints are but a mist."

Brovo! More please.

Sun, 05/22/2011 - 15:13 | 1300311 ??
??'s picture

 

Q: So with inflation ahead, are you buying gold at $1,480 an ounce?

A: I am not buying it now.

...

Q: Where should people put their money now?

A: ...Perhaps one way to proceed is to hold cash

Sun, 05/22/2011 - 15:24 | 1300329 Arius
Arius's picture

no comment ??

LOL....

Sun, 05/22/2011 - 15:41 | 1300353 NewThor
NewThor's picture

From an investing perspective, I believe he's right about not buying gold

gold now and being in cash.

It's my belief that with the gap in between QE2 and QE3 everything

will correct down 20-30%.  All stocks and commodities. 

So it'd be much safer now to be in cash, and buy silver over gold.

Yes, Gold is still a brilliant investment as long as the Federal Reserve

is around, but me thinks that you'll be able to pick it up for about

$1100 to $1200 an ounce in the summer.

 

Sun, 05/22/2011 - 16:51 | 1300453 Landrew
Landrew's picture

I don't think I agree. In the recent past two years, the very moment there is any downward movement in equities or commodities the fed introduces the QE trial balloon! At that all assets soar, is that not true? Rates rise the fed buys bonds and MBS. If your talking about what is happening now with small movements of lower equities, I play that move with short term puts on selected high momentum Dow companies. I have bought INTC June 23 puts when INTC moves over 23.50 then sell at 23.25 for a nice dime of return. I see no way to position yourself  without excess risk. Buying a blanket naked puts on high momentum Dow seems as risky with a threat of QE announcement  always a Fri. after market event possible.

Sun, 05/22/2011 - 20:19 | 1300806 tired1
tired1's picture

How about ridding oneself of FRN's moving into a more stable currency?

Sun, 05/22/2011 - 19:41 | 1300732 Saxxon
Saxxon's picture

Agreed New Thor and the guy ahead of you.

I don't have a guess for the price of gold at the nadir of the coming correction; but it is too high now.  Much moreso silver, which I believe will go well sub-$30 per ounce.

Folks, gasoline in California barely 'corrected' to $3.99 in my parts.  $4 ++ gas is slowly grinding the man on the street and our masters know it.  The video-game Osama kill excited the unwashed mass but the present administration needs better than that to lock in 2012.

So, stand by.  My spec positions are bullion and cash and I will need persuading to buy anything other than a leveraged neg ETF.

Mon, 05/23/2011 - 05:30 | 1301279 tip e. canoe
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avg gas price off the LIE this weekend: $4.59.   that's for the cheap stuff.

Sun, 05/22/2011 - 22:19 | 1300989 DK Delta
DK Delta's picture

thank god somebody saw that

Sun, 05/22/2011 - 15:13 | 1300312 Bazooka
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FED will have an "uncle point"....the point at which it's self preservation will prevent furhter QEs.

Public backlashes are already coming out; e.g. ChairSatan, William Banzai images, etc

Political backlashes are increasing against the Fed...Ron Paul and others.

More importantly, the FED is not greater than the market! It does not control the market...it follows it. Once the downdraft comes and we surpass the March 2009 lows, the contempt against the FED will become feverpitch.

Sun, 05/22/2011 - 15:45 | 1300358 Roger Knights
Roger Knights's picture

"FED will have an "uncle point"....the point at which it's self preservation will prevent further QEs."

I agree. It amazes me that more people can't see that the Fed does not have unlimited discretion--not remotely.

Sun, 05/22/2011 - 16:40 | 1300445 Yancey Ward
Yancey Ward's picture

I, too, believe there is an uncle point, but there is always the possibility that the Fed will not be the master of it's own domain.  Politicians may not give a rat's ass about the longer term viability of the Fed.  This intersection of central banking and politics is the real weakness in this belief.

Sun, 05/22/2011 - 16:05 | 1300393 ManOfBliss
ManOfBliss's picture

The Fed actually believes that monetization/QE is "good".

And, history shows, they do it until it collapses. They think that pumping dollars IS saying uncle.

Sun, 05/22/2011 - 22:22 | 1300997 DK Delta
DK Delta's picture

I heard Bernanke checked into GW University Hospital yesterday on complaints of constipation. Would a Dyschezia diagnosis qualify as a deflationary event?

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