• Sprott Money
    05/05/2016 - 06:02
    Why is a Deutsche Bank mouthpiece suggesting “negative retail deposit rates or perhaps wealth taxes”? The answer is to (supposedly) stimulate our economies.

"Fed Has Fingers & Thumbs On The Scales Of Finance," Grant Tells Santelli And It "Will End Badly"

Tyler Durden's picture


In a mere 140 seconds, Jim Grant explains to an almost stunned into silence Rick Santelli how we all "live in a valuation hall of mirrors" as the Fed manipulates everything. Thanks to it's "fingers and thumbs on the scales of finance," Grant continues, the Fed "insists on saving us from 'everyday low prices'" - what they call deflation - and by doing so it manufactures "redundant credit" which "does mischief" in and out of markets. Grant, ominously concludes, "there is no suspense as to how [this will] end... [it will] end badly."


Must watch... (especially for EM asset managers)...

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 01/30/2014 - 21:14 | 4386181 The Gooch
The Gooch's picture

Sever Roots Tree Dies

Thu, 01/30/2014 - 21:19 | 4386196 AlaricBalth
AlaricBalth's picture

End the Fed before the Fed ends us.

Thu, 01/30/2014 - 21:29 | 4386236 OC Sure
OC Sure's picture

And tell two friends this to tell two friends, please.

Thu, 01/30/2014 - 21:52 | 4386288 knukles
knukles's picture


Santelli and Grant?
CNBS is seriously worried about boosting their ratings!

Could you imagine what it would be like if it were real economic and financial reporting?
Yes, Knukies, the telly reporters would all be in the Northern Arkansas Nucleotide Reprocessing and Vegetable Washing Faciltiy #3 and the network shuttered.

Thu, 01/30/2014 - 22:09 | 4386348 Pure Evil
Pure Evil's picture

There's no comeback from that ditty.

Thu, 01/30/2014 - 22:42 | 4386469 markmotive
markmotive's picture

End badly for who? Certainly not the fat cats!

They love their ladies loose and monetary policy looser.


Thu, 01/30/2014 - 23:01 | 4386527 Pure Evil
Pure Evil's picture



Now, now.........

        who doesn't like money for nothing and chicks for free?

Fri, 01/31/2014 - 01:23 | 4386890 0b1knob
0b1knob's picture

There's a scene in the movie Wolf of Wall Street where a broker shows up at a bucket shop wearing a bow tie.   The head crook takes one look at him and fires him.

I thought of Jim Grant when I saw that.

Fri, 01/31/2014 - 05:23 | 4387082 macholatte
macholatte's picture


Fri, 01/31/2014 - 06:38 | 4387123 new game
new game's picture

i will give them til 2016 for there end badly to come true.

this i can say with confidence:2.5 ten year sooon

1750 s and p sooon

jpy 1.02 sooon

then, well all bets off.

one thing for sure, world fundamental deteriorating.

paper chase is on>trace hot money(always after best return whether rational or not).

i choose to watch, listen then comment...

all cash for the GREAT WOOOSH coming sooon...

Fri, 01/31/2014 - 06:47 | 4387127 GetZeeGold
GetZeeGold's picture



If you want your 401K......you can keep your 401K.

Fri, 01/31/2014 - 06:52 | 4387131 new game
new game's picture

i liquidated all 403b assets to cash for the great wooosh.

how about you? 1/4 AU?

sitting on a farmstead, playing the grains?

you knowledge makes for easy living-congrats.

a savy farmer with all due respect!

Thu, 01/30/2014 - 22:13 | 4386364 THX 1178
THX 1178's picture

Mmmhmm... ZH is the closest thing we have to real economic/finance reporting.

Thu, 01/30/2014 - 22:33 | 4386401 wee-weed up
wee-weed up's picture



Fingers & thumbs soon to be replaced by Yellen's fat ass in full-out QE-diarrhea mode!

Fri, 01/31/2014 - 06:47 | 4387125 Squid-puppets a...
Squid-puppets a-go-go's picture

but she gotsta wait a month before coming out with a shift in the drift - otherwise itll look like a panic response

how far we gonna fall in the next 30 days ?

Fri, 01/31/2014 - 04:36 | 4387063 Gumbum
Gumbum's picture

But...this was on CNBC? :P

Thu, 01/30/2014 - 22:56 | 4386507 Yes_Questions
Yes_Questions's picture



Northern Arkansas Nucleotide Reprocessing and Vegetable Washing Faciltiy #3..


Are they hiring and do they have a myRa?

Fri, 01/31/2014 - 01:58 | 4386951 NOTW777
NOTW777's picture

if there was real and honest reporting their ratings would soar - why cant they figure this out

Thu, 01/30/2014 - 22:09 | 4386350 A Nanny Moose
A Nanny Moose's picture

Ron Paul for prez. Santelli for Treasury Secy, Grant for Fed Chair

Thu, 01/30/2014 - 22:34 | 4386445 john39
john39's picture

There is zero need for a fed chair, much less a fed.

Thu, 01/30/2014 - 23:00 | 4386520 Yes_Questions
Yes_Questions's picture



the FED...




Time to Die

Fri, 01/31/2014 - 06:52 | 4387133 GetZeeGold
GetZeeGold's picture



It's gonna take one hell of an exorcism.


I hope pea soup doesn't make you squeamish.

Fri, 01/31/2014 - 00:10 | 4386734 therover
therover's picture

Grant has been posed the question what would he do if he was the fed chair, and he says the first thing would be to end the fed, hence abolishing his job.

So maybe Jim would be he best fed chairman because he would end it.

Fri, 01/31/2014 - 00:38 | 4386811 A Nanny Moose
A Nanny Moose's picture

Implied in my comment, at least in my small brain, is the notion that Grant would dismantle "right said Fed."

Fri, 01/31/2014 - 01:10 | 4386883 Lets Buy The Dip
Lets Buy The Dip's picture

right now the FED is the weapon for the elite. Nothing more nothing less. 

santelly forgot to tell people the U.S. stocks are on pace to close a volatile January in the red, after posting the best yearly gain in 16 years.

There is that saying on wall street.... "As January goes, so goes the year?"

but right now, the market is in a massive massive 30 points VIOLENT SWING SEE HERE => http://bit.ly/1iS4a8v

 Anyone trading the last few days, has had their nuts in a vice. 

Thu, 01/30/2014 - 22:41 | 4386467 The Vineyard
The Vineyard's picture

I've been waiting for the collapse for the last five years.  Never seems to happen.  I see Japan-style endless recession, not Zimbabwe.

Fri, 01/31/2014 - 00:12 | 4386740 Frozen IcQb
Frozen IcQb's picture

Given a choice, i'll take a Japan-style endless recession over Zimbabwe.
Gold has done well priced in Yen over the last decade and without hyperinflation to boot.

Fri, 01/31/2014 - 00:24 | 4386768 Greenskeeper_Carl
Greenskeeper_Carl's picture

All very true, both of you. However, don't think just because Japan has gone Zimbabwe yet, they won't. Our future probably holds a long Japan style decline, which will lead to moar central planning, until eventually you get your Zimbabwe shit storm. That's the problem you get when all these decisions are made by central planners who pay no price for being wrong.

Fri, 01/31/2014 - 04:20 | 4387053 Doña K
Doña K's picture

Japan, was in survival mode for two decades because others were doing better and Japanese companies were showing profits as the BOJ was winking when to expatriate yen and when to repatriate yen, thus the round trip at the right time produced their profits. Now however, the world is in Japan's position and in a currency race to the bottom everyone loses except gold holders.

That is why Central Banksters will die or have us die in wars instead, before they let gold price go to the moon and expose them.


Fri, 01/31/2014 - 07:37 | 4387183 Frozen IcQb
Frozen IcQb's picture

All central banks must be shut-down. Monetary issuance must return under the electorate’s control.

Hopefully, this can be achieved without wars and limited to a few bankers falling of the 35th floor.

Fri, 01/31/2014 - 00:12 | 4386739 Babaloo
Babaloo's picture

The next time Jim Grant is right will be the first time.

Fri, 01/31/2014 - 00:26 | 4386783 AlaricBalth
AlaricBalth's picture

From Financial Times.
"If Grant could see what was happening this clearly,” wrote John Authors of the staff of the FT, “and warn of it in a well-circulated publication, how did the world’s financial regulators fail to avert the crisis before it became deadly, and how did the rest of us continue to make the irrational investing decisions..."

Fri, 01/31/2014 - 02:31 | 4386968 buyingsterling
buyingsterling's picture

Ooh! Alaric's done you, mate. You look like a right twat.

Fri, 01/31/2014 - 04:25 | 4387054 matrix2012
matrix2012's picture

"So, a smart question to ask at this time is: Is the moment in time we're in today closer to January 2006, when there were several years left of exuberance to ride? Or is it more like September 2008, poised at the precipice?

A smarter answer is: There's no way to know with acceptable certainty.

Like grains of sand piling up or snowflakes falling on a cornice, we can assess the growing level of risk, but we can't identify the grain of sand or snowflake that will cause the eventual cascade. We can't predict the collapse timing with confidence. We can – and will – continue to make our best-educated estimates, but the exact timing is unknowable.

So, given that fact, as John Hussman so pithily captures, bubble markets force us to make a choice:

The problem with bubbles is that they force one to decide whether to look like an idiot before the peak, or an idiot after the peak. 

And so your choice is upon you. Look at the evidence around you  a movie nearly identical to one you saw in 2000 and again in 2008 – and either decide to party with the herd while the music plays (look smart today), or park yourself in safety now (look smart tomorrow).

Since the timing of the next correction is unknowable, the prudent choice is obvious. But it's not easy, for all of the reasons mentioned at the start of this article."

Adam Taggart

Fri, 01/31/2014 - 08:30 | 4387254 SoilMyselfRotten
SoilMyselfRotten's picture

Grant is always worth listening to. Babaloo, replace your crack with weed, it doesnt kill as many brain cells.

Fri, 01/31/2014 - 00:39 | 4386815 Franktastic
Franktastic's picture

Civil Disobedience anyone?

"Withholding payment of taxes is one of the quickest methods of overthrowing a government"
Mahatma Gandhi

Fri, 01/31/2014 - 00:49 | 4386833 Al Gorerhythm
Al Gorerhythm's picture

But then there's always green shoots.

Fri, 01/31/2014 - 06:52 | 4387132 XAU XAG
XAU XAG's picture

The shortest statement would be


Fed has FUBAR'D the markets-not going to end well

Thu, 01/30/2014 - 21:15 | 4386182 WelfareFTW
WelfareFTW's picture


edit: argh! or not

Thu, 01/30/2014 - 21:16 | 4386190 The Gooch
The Gooch's picture

some firsts are moar equal than others.





Thu, 01/30/2014 - 21:19 | 4386201 OC Sure
OC Sure's picture

Inflation favors the thief; deflation favors the honest citizen.

Thu, 01/30/2014 - 23:18 | 4386551 CognacAndMencken
CognacAndMencken's picture



Can you please tell me how deflation benefited the farmers of America in the 1880's, and how it affected the honest citizens during the Great Depression?  

The closest we've come to a sweeping round of deflation was 2008/9, and it would appear that the majority of "honest citizens" are still trying to find jobs, pay bills, and dig themselves out of the ditch.  

I'm betting that you're from the South.... ????    

Thu, 01/30/2014 - 23:25 | 4386592 greatbeard
greatbeard's picture

>> just tell me that you're from Texas or the South and I'll understand

Well lookie what we got here, one of them educated, high and mighty bigots.  Suck my neighbor's dog's dick, jackass.

Thu, 01/30/2014 - 23:45 | 4386659 Shad_ow
Shad_ow's picture

Thank you. Saved me the trouble.


Fri, 01/31/2014 - 00:24 | 4386769 prains
prains's picture

1880's LOL that's a timely comparison.....

Thu, 01/30/2014 - 23:54 | 4386664 OC Sure
OC Sure's picture

@ C&M

When the value of a currency goes up, so does its purchasing power. As prices of real things decline, if you hold that currency, you can do more with it. During the Great Depression they understood that simple fact. In 1932 Eddie Cantor had a number one hit named Nows the Time to Fall in Love. Check it out. It says it all:

"Potatoes are cheaper
Tomatoes are cheaper
Now's the time
To fall in love

Why, the butcher, the baker,
And the candlestick maker
All gave their price
A downward shove

Grab yourself someone
To fry your eggs and bacon
Why, she can live just like a queen
On what you're makin'

'Cause this and that's a lot cheaper
And a flat's a lot cheaper
So, Honey, now's the time
To fall in love"

You are probably mistaking the loss of jobs during deflationary times as the symptom of the deflation. This is where you may be miffed. The cause for the loss of jobs was the expansion, inflation, prior to the deflation. The deflation is the fix.


Fri, 01/31/2014 - 00:39 | 4386818 A Nanny Moose
A Nanny Moose's picture

Pay the fuck attention!

Again...it was neither the inflation, nor the necessary and subsequent deflation, which hurt farmers. It was government fucking around with the money supply.

Fri, 01/31/2014 - 10:04 | 4387521 jerry_theking_lawler
jerry_theking_lawler's picture

Ok. You are REALLY close on this one....just a little bit further. 


Fucking around with the monetary supply IS by definition inflation (expanding money supply) and deflation (contracting money supply).....

Fri, 01/31/2014 - 04:15 | 4387050 epicurious
epicurious's picture

During the the teens & 20's government intervention in farm pricing caused the expansion of wheat farming in an area that could not ecologically support that.  The government actually gave people free train rides out to develope a grassland region that was eventually became a wasteland due to improper governemnt meddling.  The government was the primary cause of the great depression in every way.  Read "The Worst Hard Times".   Great account of all this.  Get educated before mouthing off on Zero Hedge.

Thu, 01/30/2014 - 21:22 | 4386214 chumbawamba
chumbawamba's picture

That wasn't much better.  If you want to talk firsts then go back to 1789, but that's only where America is concerned.  You can't even know the year this began because it happened before a flood came and nearly wiped out the planet aeons ago.

I am Chumbawamba.

Do NOT follow this link or you will be banned from the site!