Jim Grant Exposes "The Bureau Of Money Materialization" And A Submerging America

Tyler Durden's picture


Jim Grant spends exactly the correct amount of time (zero) discussing the "urban myth' of the trillion dollar coin in this brief interview on CNBC; instead deciding to try and strike up some intelligent understanding of the dire situation we face. By providing context for our massive 16 trillion dollar debt (360 million pounds of $100 bills), and explaining how exponential the idiocy has become, Grant brings us full circle as he explains to the money-honey that once upon a time our debt was backed by gold, and "there was only so much gold and so many dollars," thus limiting our exuberance, but "now we have neither the gold covering the dollar nor do we have interest rates constraining us [thanks to Bernanke et al.]; the only thing remaining to constrain us is some sort of civil discussion, a numerate discussion about the debt," which it appears the bespectacled and bow-tie-bound bond brain-box hopes is possible. "The debt has increased twice as fast as federal receipts," he warns, adding correctly that "the United States is truly submerging."

Our fiscal problems are enormous and yet the Federal Reserve, that is "The Bureau of Money Materialization," can print money (materialize dollars on a screen), removing the fiscal constraint too; so what we have is a fiscal problem when the underlying problem is monetary.

With the decidely un-Hamiltonian Lew now in charge and a hyprocritical 'bewailing the debt' Obama now wanting no limits, our future is in the hands of foreigners he warns - and the debt markets will only react when they grasp exactly how big a trillion really is.


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Thu, 01/10/2013 - 19:47 | 3142699 khakuda
khakuda's picture

The guy is right. The real problem is the FED.

Thu, 01/10/2013 - 19:49 | 3142703 Rainman
Rainman's picture

No....Oblameo built that !

Thu, 01/10/2013 - 20:03 | 3142739 Zap Powerz
Zap Powerz's picture

The problem is people dont understand that this has all been done intentionally in order to enslave us.

They just cant wrap their public school educated brains around the fact that there are some bad people in this world that want to enslave them, take away their freedoms, starve them to death and take all they have.  These same people are caught up in the Red/Blue party paradigm and cant see how their own team is fucking them in the ass.

Countries do not collapse on accident, unless, of course, they are named Atlantis.  But were not Atlantis.  This was the bastion of freedom, property rights, the rule of law.  Ordinary men could break the bonds of poverty and servitude here.  And that really really pisses off the Elites.  They've been working against freedom for the entire existence of the USA and they are about to finalize their plans.

Thu, 01/10/2013 - 20:08 | 3142769 forexskin
forexskin's picture

little disappointed that jim has given up the bow tie...

Thu, 01/10/2013 - 21:03 | 3142949 Thomas
Thomas's picture

It certainly cured any concerns that +50% exposure to gold is too high and replaced them with concerns that 90% exposure is not enough.  "Gold bug since '99."

Thu, 01/10/2013 - 23:49 | 3143366 Big Slick
Big Slick's picture

The video is a must watch for any ZH newbie and should be linked by us all to our friends and family in the shadows of the outside world 

Fri, 01/11/2013 - 00:07 | 3143392 Big Slick
Big Slick's picture

“Before 1971 what used to constrain borrowing were (1) interest rates and (2) the gold feature of the dollar.  There was only so much gold.  There were only so many dollars.  (Government spending, too, had to work within that constraint)  Today we have neither the gold covering the dollar, nor the interest rates constraining the debt.  The only thing remaining to constrain us is some sort of discussion about the debt, and the debt is astounding.”

Jim Grant YOU are the gold!

Fri, 01/11/2013 - 02:27 | 3143518 fourchan
fourchan's picture

who is the fucking moron that invented this fucking coin idea?

Fri, 01/11/2013 - 15:06 | 3145000 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

I for one am cheering that this coin goes on.  People will start to understand the whole charade after the WTF moment.  THIS IS FUCKING ZIMBABWENOMICS, and people need to know it.  The coin will help immensely.  God give us this fucking coin!  Putting charles ponzi/jon corzine on its face would be a plus.

Thu, 01/10/2013 - 23:04 | 3143284 villainvomit
villainvomit's picture

Yeah, but he still rocks

Fri, 01/11/2013 - 14:10 | 3144811 theprofromdover
theprofromdover's picture

As well as the tie, Jimbo got new socks for Xmas.

Thu, 01/10/2013 - 20:18 | 3142797 nmewn
nmewn's picture

And on this point (and the "trillion dollar coin") more ridiculous fiscal central planning to relieve the people o their labor...

"However, there is a plausible course of action, one that the president should publicly adopt in the coming weeks as his contingency plan should debt-ceiling negotiations falter. He should threaten to issue scrip — “registered warrants” — to existing claims holders (other than those who own actual government debt) in lieu of money. Recipients of these >>>I.O.U.’s<<< could include federal employees, defense contractors, Medicare service providers, Social Security recipients and others.

The scrip would not violate the debt ceiling because it wouldn’t constitute a new borrowing of money backed by the credit of the United States. It would merely be a formal acknowledgment of a pre-existing monetary claim against the United States that the Treasury was not currently able to pay. The president could therefore establish a scrip program by executive order without piling a constitutional crisis on top of a fiscal one."


Our "best & brightest" never sleep...lol...try paying Secret Serivce agents and soldiers in scrip and see how long you last ;-)

Thu, 01/10/2013 - 21:30 | 3143018 Withdrawn Sanction
Withdrawn Sanction's picture

It would merely be a formal acknowledgment of a pre-existing monetary claim against the United States that the Treasury was not currently able to pay.

Only a lawyer could weasel-word "pre-existing monetary claim" into something that's not a debt.  Jeez, it's an IOU, ergo it's a debt, just like an accounts payable.  The acid test would be whether the Treasury itself would accept such "scrip" in payment of taxes (doubtful...why would they want something that's not so spendy), and perhaps more importantly, would Wal*Mart or Safeway accept it in payment for food.

I guess that's what one should expect from the second-rate Ivy Leaguers of Ithaca.

Thu, 01/10/2013 - 22:15 | 3143166 nmewn
nmewn's picture

It really is amazing how they make complete jackasses of themselves.

More...send in the clowns ;-)


Fri, 01/11/2013 - 11:42 | 3144235 Thisson
Thisson's picture

Paying people in scrip is illegal under other laws (for example, labor laws prohibit payment of wages in scrip).

Thu, 01/10/2013 - 21:07 | 3142959 newengland
newengland's picture

So very true, Zap Powerz.

And this:

The elites hate it if ordinary people own gold, silver, guns, land and genuine community. It is a pity that some people think Soros, Feinstein, Bloomberg, Dodds and others are anything other than Nazi fascists under a new world order in the making...if we the people  let them get away with it.

A Rabbi admonishes them, and supports the Second Amendment, the Constitution, the people of the USA who ought to start remembering whey their ancestors came to the USA, seeking refuge from tyrants in the rest of the world.




Thu, 01/10/2013 - 20:09 | 3142762 forexskin
forexskin's picture

wish he could, from atop his well regarded credibiltiy, simply say the government is practicing unsustainable criminal fraud.

Thu, 01/10/2013 - 20:08 | 3142764 boogerbently
boogerbently's picture

Jim Grant, Rick Santelli, Nigel Farage........wait a minute, I'm forming my "fantasy" cabinet.

Thu, 01/10/2013 - 20:30 | 3142840 tsx500
tsx500's picture

Kyle Bass

Thu, 01/10/2013 - 21:04 | 3142952 Thomas
Thomas's picture

Jack Bogle, David Stockman...

Thu, 01/10/2013 - 21:24 | 3143006 Pareto
Pareto's picture

Stockman for sure.  Just because he's been there before, provides the benefit of being able to demonstrate how not to fuck upthis time.

Thu, 01/10/2013 - 23:52 | 3143371 Big Slick
Big Slick's picture

I thought you folks liked and respected these people!

Fri, 01/11/2013 - 13:59 | 3144757 ultraticum
ultraticum's picture

Jim Rickards, Jim Rogers, Marc Faber . . .

Fri, 01/11/2013 - 15:19 | 3145036 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

imagine a statement by mark faber as a govmnt official:  "Good morning ladies and gentleman, I am thankful and honored to be taking this position. My first assignment is to audit the gold, because the previous guys have probably sold it all and it's probably on some bunkers in China and Switzerland.  Also, I think that we should unwind the Fed's Balance sheet immediately, and raise interest rates to at least 25%.  After that, prime wall street real state will be on sale, as the banks collapse.  Mark my words: this is a full-blown reset and please start your preparations for war."  

Thu, 01/10/2013 - 20:30 | 3142843 tsx500
tsx500's picture

Alex Jones

Fri, 01/11/2013 - 01:38 | 3143481 jonjon831983
jonjon831983's picture

I only saw a couple Alex Jones videos from my buddy and it sorta was interesting, but after watching that almost incoherent CNN interview...?  If he didn't like the system why did he go in to play.

Fri, 01/11/2013 - 05:35 | 3143626 IamtheREALmario
IamtheREALmario's picture

Jones is part of the controlled oppposition. He is sponsored by money and will eventually self-destruct because he has been seduced by money. Jones is given a forum by the controllers so that he can help them destabilize the people and identify threats. He is the worst kind of traitor and his ranting will incite some and give the controllers the excuse they want to crack down further on freedoms.

Keep in mind that it is the incompetence of the controllers that makes them fearful. Their instinctive reaction is to reduce the threat instead of embrace is.

Fri, 01/11/2013 - 06:43 | 3143657 israhole
israhole's picture

Plus, Jones has said that Hollywood is controlled by Arabs.  He's a dick.

Thu, 01/10/2013 - 20:56 | 3142916 grgy
grgy's picture

With Ron Paul as president, add Marc Faber, Peter Schiff, James Rickards and David Stockman and those already mentioned and we've got one hell of a team.

Thu, 01/10/2013 - 20:57 | 3142924 knukles
knukles's picture

I of course, could help out with Perceptions Management.

Fri, 01/11/2013 - 00:43 | 3143440 JPM Hater001
JPM Hater001's picture

Seriously, Faber isnt even American.

You are smarter than this.

Fri, 01/11/2013 - 01:37 | 3143480 ceilidh_trail
ceilidh_trail's picture

Is obama?

Fri, 01/11/2013 - 02:50 | 3143539 fourchan
fourchan's picture

its doubtful.

Fri, 01/11/2013 - 09:50 | 3143891 Teamtc321
Teamtc321's picture

Install very right in the middle. 

Fri, 01/11/2013 - 10:20 | 3143976 Campagnolo
Campagnolo's picture

Obama is from Haiti they say

Thu, 01/10/2013 - 21:59 | 3143118 Rogue Trooper
Rogue Trooper's picture

You actually would not need anymore folks.  The rest of the Grubbermint work force gets 24 hours notice, don't turn up tomorrow, etc.  Just send them a fuckin email, no admin, everything else gets closed down.  I would keep the core defence force but none of the offensive shit and all the alphabet agencies.

Job done.... move on.

Fri, 01/11/2013 - 00:07 | 3143391 TeMpTeK
TeMpTeK's picture

I love when Santelli has Nigel FaRONZ on the show.....

Fri, 01/11/2013 - 09:49 | 3143889 geoffb
geoffb's picture

Hugh Hendry for president?

Thu, 01/10/2013 - 19:50 | 3142705 francis_sawyer
francis_sawyer's picture

The REAL problem are the 'beneficiaries' of the existence of the FED... Moreover ~ the masses who are harmed [by same]...

Thu, 01/10/2013 - 20:03 | 3142738 Snakeeyes
Snakeeyes's picture

It IS The Fed. Trillion dollar f***ing coins????????? These people are killing us.


Thu, 01/10/2013 - 20:04 | 3142743 Dealer
Dealer's picture

I love this guy.  But not as much as I love Kyle "Nickles" Bass.


Thu, 01/10/2013 - 22:20 | 3143186 bobthehorse
bobthehorse's picture

Jim Grant is a shit hot.

Ron Paul loves him, too.

Nuff said.


Fri, 01/11/2013 - 09:44 | 3143876 Slightly Insane
Slightly Insane's picture

Jim Grant said, the FED is should be refered to as the Bureau of Money Printing.  I say the "Dollar Print Store".

Thu, 01/10/2013 - 19:49 | 3142706 laomei
laomei's picture

The FED's not the problem.  The problem is interest and predatory practices which should be flat out criminal.

Thu, 01/10/2013 - 19:51 | 3142709 francis_sawyer
francis_sawyer's picture

 "interest & predatory practices" are collectively known as USURY... Follow the trail to see where that practice leads...

Thu, 01/10/2013 - 19:53 | 3142717 laomei
laomei's picture

The basis for the entire US economy?

Thu, 01/10/2013 - 19:54 | 3142720 francis_sawyer
francis_sawyer's picture

dead end

Thu, 01/10/2013 - 21:11 | 3142965 LasVegasDave
LasVegasDave's picture

hey speicher

Dont blame the jews because you cant get a loan

You're a fuck up, plain and simple

and your pathetic, jew hating existence is a source of great amusement for Yids and Goyim alike.

Thu, 01/10/2013 - 22:15 | 3143097 francis_sawyer
francis_sawyer's picture

If you're talking to me, as far as 'loans' are concerned I don't worry because I don't borrow money [notwithstanding the reality, or not, that the main source of borrowed money happens to be from insolvent banks whose office of 'central casting' prints the stuff out of thin air & for their personal enrichment]... The fact that they're mostly managed & coordinated by Jews is therefore, in practice, your problem, not mine [or perhaps NOT because it appears you relish the role of a debt slave]...

Furthermore ~ my motives for 'not borrowing' money AREN'T completely selfish [as I'm 100% aware of the fact that in a debt money system, every dollar that I'd presumably borrow would be subsequently levered up, via multiplier into 'joobux' in the system ~ thereby causing amplitudes of misery down the line for innocent folks who don't quite understand the system]...

I elect YOU to tell them how to act & spend... My suggestions aren't very helpful...

Fri, 01/11/2013 - 00:40 | 3143434 tango
tango's picture

Working on the Ron Paul campaign I ran into some who launched into mad rants about "those Hollywood Jews who ran all the banks." Folks would go silent, utterly embarrassed at such tripe.  I thought the idea of blaming other groups for problems disappeared after the Black death.  Guess it's still alive and kicking.

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