Jim Grant: "Gold Is Nature's Bitcoin"

Tyler Durden's picture


Having previously explained how "the Fed has its thumb and fingers on the scales of finance," and why it will end badly; Jim Grant takes today's testimony from Janet Yellen to task in this brief (but fun-filled) clip.

While the new Fed chair spoke at length, Grant notes she did not explain how "the Fed continues in this unprecedented exercise in price control," and in less than 30-seconds, the always eloquent founder of the Interest Rate Observer 'translates' her Fed speak into reality -

"What we mean to do is continue to nationalize the yield curve... and we would like to enlist the stock market in a program of wealth creation for the security holders of America."

The Fed has manipulated interest rates for 100 years but Grant adds, "never - until now - has it manipulated the stock market as if it were a lever of public policy."

His discussion ranges from the bubble in Biotech to holding Gold (which he describes as "nature's bitcoin") because it is "the reciprocal of faith in Central Banks."


Spend 135 seconds of your life to listen to this... way more informative than watching Bode Miller flop again (or Shaun White)...


And it seems CNBC saw fit to remove the reference to Bitcoin, gold, and faith in central banks - ironic really...

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Tue, 02/11/2014 - 21:15 | 4426162 wallstreetapost...
wallstreetaposteriori's picture
Jim Grant: "Gold Is Nature's Bitcoin"... thats not what foneystar says
Tue, 02/11/2014 - 21:16 | 4426169 BlackChicken
BlackChicken's picture

True, but Grant nailed it though.

Tue, 02/11/2014 - 21:24 | 4426196 Soul Glow
Soul Glow's picture

GOld is money and paper is nothing more than the ink that lines it.  A promise to pay means nothing when the creditor is broke, and all nations are broke.

Even China is broke considering that what backs them is UST debt.  And though they have bought gold hand over fist - and mined the shit out of their topography looking for it - it won't make a difference.  Unless gold revalues to over $50,000 an ounce.

Then they will have gold and be paid back their debt with the paper gold that sits on the Fed's balance sheet.  By then paper gold will be a way to keep the system going, but imagine when not even paper gold is traded, for lack of propietry.

Gold in the hand is all that matters when it comes to maintaining a store of wealth decade over decade.  

Tue, 02/11/2014 - 21:26 | 4426200 Supernova Born
Supernova Born's picture

And Jim Grant is ZH's gold.

Tue, 02/11/2014 - 21:42 | 4426254 max2205
max2205's picture

MyStawks would at least give joe and Jane a chance to bank some coin if old Yellen keeps this from left to top right

Tue, 02/11/2014 - 22:07 | 4426359 philipat
philipat's picture

"And it seems CNBC saw fit to remove the reference to Bitcoin, gold, and faith in central banks"

What a surprise!!

Tue, 02/11/2014 - 22:29 | 4426442 fonestar
fonestar's picture

Bitcoin is fonestar's true love.

Tue, 02/11/2014 - 23:40 | 4426693 BlackChicken
BlackChicken's picture

Bitcoin love you long time...

Wed, 02/12/2014 - 06:31 | 4427297 GetZeeGold
GetZeeGold's picture



Would you take a ckeck for that?

Tue, 02/11/2014 - 23:40 | 4426695 TheMeatTrapper
TheMeatTrapper's picture

You have turned thousands of people off of Bitcoin because of your immature, deliberately annoying persona. 

Perhaps that is by design. 

What is sad is that regardless of your true intentions, you seem to have so little in the way of a real life. I really hope things turn around for you. I honestly do. Life is too short to spend it playing games on the internet. Step outside, roll up your sleeves and do something useful and productive. It will do you good. 

Wed, 02/12/2014 - 00:02 | 4426764 whatthecurtains
whatthecurtains's picture

Be nice to Fonestar  He is worth his weight in Bitcoins.

Wed, 02/12/2014 - 00:54 | 4426909 silverserfer
silverserfer's picture

naw, hes an attention whore who only comments at the begining of threads. 

Wed, 02/12/2014 - 06:33 | 4427298 GetZeeGold
GetZeeGold's picture



He is worth his weight in Bitcoins.


What is the atomic weight of bitcoins again?

Wed, 02/12/2014 - 11:04 | 4427845 TheCanadianAustrian
TheCanadianAustrian's picture

I'm a Bitcoin proponent, and I agree that fonestar's behavior has likely turned a lot of intelligent ZeroHedgers away from Bitcoin.

Wed, 02/12/2014 - 07:31 | 4427347 Oracle of Kypseli
Oracle of Kypseli's picture

Bitcoin is fonestar's true love and death by a thousand cuts

Wed, 02/12/2014 - 11:06 | 4427853 funthea
funthea's picture

I'm worried about you fonestar. I'm really worried.

Tue, 02/11/2014 - 21:46 | 4426266 boogerbently
boogerbently's picture

Jim Grant and Rick Santelli for......something !

Tue, 02/11/2014 - 21:49 | 4426283 BLOTTO
BLOTTO's picture

Don't kid yourselves - 'they' love gold too. 


I believe their is something more special about it outside of what we know. They've been getting us commoners to mine it for them since...


Tue, 02/11/2014 - 21:35 | 4426231 XitSam
XitSam's picture

When gold reaches $50,000/oz, the dollar will be irrelevant.

Tue, 02/11/2014 - 21:40 | 4426253 DaveyJones
DaveyJones's picture

Gold is the banker's spanker when he grows to be a wanker

Fri, 02/21/2014 - 09:27 | 4461398 ATM
ATM's picture

You got it backwards. When 50k dollars only buys 1oz of gold, it will be irrelevant. Maybe not backwards but....

Tue, 02/11/2014 - 21:24 | 4426202 Thomas
Thomas's picture

Jim is the best.

Tue, 02/11/2014 - 21:27 | 4426210 Soul Glow
Soul Glow's picture

The man who would be Fed Chair.

Wed, 02/12/2014 - 01:56 | 4427038 wintermute
wintermute's picture


It should have happened this month. But no chance for sanity in the fiat Hall of Mirrors.

Tue, 02/11/2014 - 21:45 | 4426261 stocktivity
stocktivity's picture

He may have nailed it but until the fed stops printing, It's all Bullshit!!!

Wed, 02/12/2014 - 03:29 | 4427154 silvermail
silvermail's picture

Google translator, translates this as: "Biktoin - nature is gold"!

Jim Grant did not say: "Biktoin - nature is gold"!

He said: "Gold is nature's bitcoin".

Google translator - like a charlatan, who tries to make invisible the substitution of notions like Schuller trying to replace deuce to the joker.

Tue, 02/11/2014 - 21:15 | 4426163 stant
stant's picture

saw that at lunch, good interview

Tue, 02/11/2014 - 21:20 | 4426174 LawsofPhysics
LawsofPhysics's picture

Perhaps, one thing is for sure however, the laws of Nature and physics are what they are and always seem to do what they do regardless of the current dominant species...


I thnk about PMs differently I guess.  In order to actually do or create anything real, you need energy.

because refined gold is rather inert and will hang out indefinitely and it takes energy to refine and produce refined gold, gold is also a store of energy/work, it's inert nature makes it a safe store of value.  No surprise people have been willing to exchange their labor for gold for so long. Some people say that gold can be stolen.  I know four generations in my family who have never had their monetary gold stolen.

I guess common sense just isn't taught anymore.

Tue, 02/11/2014 - 21:29 | 4426218 Soul Glow
Soul Glow's picture

Humanity will be tricked by banksters over and over again.

Tue, 02/11/2014 - 22:00 | 4426334 ForTheWorld
ForTheWorld's picture

However, if the energy invested into producing an ounce of refined Gold is more than the Gold is valued in a particular currency, doesn't it become a poor investment of said energy at some point?

Yes, I've held Gold, because people have faith in it as a store of wealth, and accept it in transactions.

Tue, 02/11/2014 - 22:23 | 4426376 Dick Buttkiss
Dick Buttkiss's picture

Once the price of gold goes high enough (and it will), governments will sieze the miners thereof and keep it in the ground as their private "vault."

Gold will all the more belong to them not us, in other words, which is why cryptocurrencies are our only hope (with whatever PMs you might have serving as a backup).

Wed, 02/12/2014 - 00:03 | 4426744 Prisoners_dilemna
Prisoners_dilemna's picture

Gold is not natures bitcoin. I love them both but they are similar and complementary but inherently different.

They have overlapping monetary functions but they are also unique in their own monetary way.

With an incredible amount of respect I gotta say...

"Gold is natures bitcoin" is the worst comment I hope to ever hear the illuminous Mr. Grant utter.



Gold is natures gold.

Bitcoin is natures bitcoin.

They both exist within the laws of our universe. Both are of nature. But different in nature.


And because they are different in the roles they play and their inherent properties, you are correct in saying that gold has failed to End the Fed or measure inflation, Bitcoin will succeed.

"Internet Reformation" Bitchez


Wed, 02/12/2014 - 00:27 | 4426832 centipede
centipede's picture

Cryptocurrencies do not make any sense unless government makes them a legal tender and force you to pay taxes and debt in them. I can create my own cryptocurrency using available technology as everybody else can. And I can create as many as I wish. Some that will have one virtual coin only and nobody will be able to counterfeit any of them. What will be the dollar value of such a coin? Billions of dollars? And if everybody else creates their own coins and many types of them what will be their values. Billions of dollars as well?

Gold can be stolen or confiscated but it will always have a value related at least to the energy needed to produce it and it will be independent of governments.

Wed, 02/12/2014 - 05:57 | 4427270 Advoc8tr
Advoc8tr's picture

Well that is just a ridiculous analogy. Gold is not inter-changeable with silver, brass, iron and Bitcoin is not inter-changeable with your non-distributed basement coin.  Bitcoin is the one with critical mass and widest distribution and trust base.  The other cryptos have other uses as do the other metals but Gold and Bitcoin are the monetary versions.


I am Gold first myself ... but the value stored in Gold can evaporate too if trust is destroyed. Discovery of a method to manufacture it industrially from other materials could undermine trust as easily as cracking the SHA256 would Bitcoin ?  The cost of input energy would be irrelevant.  Unlikely but not categorically impossible.

Wed, 02/12/2014 - 00:52 | 4426904 silverserfer
silverserfer's picture

dick, I guess you havent heard of the mining mortaratum in california and oregon. no dredging. " beacuse of the fish" already begining.

Wed, 02/12/2014 - 00:52 | 4426905 silverserfer
silverserfer's picture

dick, I guess you havent heard of the mining mortaratum in california and oregon. no dredging. " beacuse of the fish" already begining.

Tue, 02/11/2014 - 22:29 | 4426438 RaceToTheBottom
RaceToTheBottom's picture

Dry cells and Excel spreadsheets for the FED!!!!

Tue, 02/11/2014 - 23:56 | 4426736 TheMeatTrapper
TheMeatTrapper's picture

Very valid point about energy being the prime mover for production and creativity. 

As far as PM's being stolen, after the Civil War most Southern homes of value were looted and burned. Wealth consisted of land, buildings, crops, investments and silver - in the form of household furnishings. 

The buildings were burned to the ground. Investments in Confederate bonds evaporated. Crops were destroyed and the means of production (slaves, machinery, etc) removed. 

That left silver. Candlesticks, forks and magnificent tea sets made in England. I have seen some truly stunning examples. 

This last line of wealth had to be hidden from the Union Army as they burned homes to the ground, threatened women with having their husbands shot, and bribing slaves to give up the hiding places. 

They never found most of them. 

A sack tied in the top of a tree is a damn hard thing to find. Lots of trees in my neck of the woods.

Preppers that are obsessed with burying shit in PVC pipes in the ground simply haven't read history.

We've been through this before.

Wed, 02/12/2014 - 08:07 | 4427379 Doña K
Doña K's picture

Are these trees evergreens? 'Cause in the winter you will be able to see the sacks

Tue, 02/11/2014 - 21:18 | 4426175 Cacete de Ouro
Cacete de Ouro's picture

Disregarding the bow tie, by God, the man might be on to something !

Tue, 02/11/2014 - 21:27 | 4426195 Mad Mohel
Mad Mohel's picture

Wed, 02/12/2014 - 06:36 | 4427299 GetZeeGold
GetZeeGold's picture



The madman has been rendered speechless.

Tue, 02/11/2014 - 22:12 | 4426383 rosiescenario
rosiescenario's picture

...the 'other Jim' sports a bow, too....maybe its some sort of secret society thing?Never saw Greespam or his acolyte in one....

Tue, 02/11/2014 - 21:19 | 4426177 blindman
blindman's picture

Jim Croce - Greatest Hits - You Don't Mess Around With Jim
slim jim !

Tue, 02/11/2014 - 21:25 | 4426192 Moe Hamhead
Moe Hamhead's picture

Did anybody recognize the idiot who was lost on the set ?

Tue, 02/11/2014 - 21:42 | 4426259 XitSam
XitSam's picture

Looked like Barney Frank to me.

Tue, 02/11/2014 - 22:24 | 4426419 Dick Buttkiss
Dick Buttkiss's picture

Pronouced Bwarny Fwank, which is a mouthful that this cocksucking sociopath knows all too well about.

Tue, 02/11/2014 - 22:52 | 4426525 Remington IV
Remington IV's picture

He was looking for his post 5 bj

Tue, 02/11/2014 - 22:52 | 4426526 Remington IV
Remington IV's picture

He was looking for his post 5 bj

Tue, 02/11/2014 - 21:26 | 4426207 NoDebt
NoDebt's picture

Back when I was brand new on ZH somebody posted up the following (paraphrasing as best I can remember):

"Guys, they control the money supply.  They can keep this game going for a LONG damned time."

For some reason, that comment has stuck with me to this day.  Every time I hear about these type of cautions I remember that phrase and, if I had the chance, I would ask Jim Grant the following question:  "Ok, so the Fed has it's finger on the monetary scales.  I agree.  What would ever make them voluntarily take their finger off again?"


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