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Presenting Jim Grant's Greatest Hits (On Money, Banking, Gold And The Fed)

Tyler Durden's picture


Jim Grant, whose Grant's Interest Rate Observer has been one the world's most informative premium newsletters since 1983, has long been one of Zero Hedge's favorite commentators, not least due to his convergent ideas on monetary policy and the role of central planning in the world, which as Arthemis Capital presented very vividly last week, is the sole marginal decider of risk in the world's capital markets (and thus the most critical shadow political force the world, or rather its bankers, has ever unleashed upon itself). So while we await any news out of Greece, however non-eventful they may be, and at best will see the placement of one Pap ("G"), with another Pap (the "L", who as we profiled is nothing but yet another puppet of the Federal Reserve), here is a compilation of James Grant's best moments on money, banking, central banking, gold and the Federal Reserve System, courtesy of Gresham's Law. It is no wonder that Ron Paul recently said that he would choose James Grant as Fed Chairman if elected.


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Sun, 11/06/2011 - 13:32 | 1850665 speconomist
speconomist's picture

He is a genius, but his latest appearance on CNBS where LIESman was interviewing him was not so much interesting.

Sun, 11/06/2011 - 13:43 | 1850673 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Grant, Paul's choice for Fed Chair....

Which begs the question-

I though Paul was going to end the Fed?

Ron Paul- Fed’s Still in QE:

Sun, 11/06/2011 - 13:47 | 1850689 marsdefIAnCe
marsdefIAnCe's picture

If God dropped a perfect plan in RP's lap he still wouldn't know how to be prez because he is a philosopher, not a leader.


Most people that don't obsess over monetary matters (even though this is a pretty legitimate thing to do) are made deeply uncomfortable by him because they recognize that his personality isn't suited to the job.  Hell, even RP knows as much.

Sun, 11/06/2011 - 13:51 | 1850699 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Philosophers are leaders.  Philosophers have changed the realm of possibility over and over.  They were the first scientists, they were the first mathmaticians.  So for you to say Paul is a philosopher, that is the greatest compliment you ould give him, and with this compliment, you bet he is a leader.

Sun, 11/06/2011 - 14:00 | 1850717 marsdefIAnCe
marsdefIAnCe's picture

I know where you're coming from with that.  I completely agree with most of it and have a tremendous amount of respect for him largely for those reasons.


Nevertheless, reality remains, and while RP's musings on monetary policy are poignant and relevant, this is not the sort of thing that the sheeple can deal with.  Smart people that know about the Rothschild's assassins might perceive boldness in even bringing up the Fed, but the sheeple do not.  They will never elect a leader that does not provide a sense of security, something RP should know and does nothing to address.

Sun, 11/06/2011 - 14:03 | 1850726 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Ron Paul has won countless strawpolls....

We will see.  After all, it is time that tells.

Sun, 11/06/2011 - 14:14 | 1850743 GeneMarchbanks
GeneMarchbanks's picture

Here's my suggestion(just in case those straw polls prove unreliable):

Even if Paul loses, pretend that he won. The message is really more important than RP himself. It'd be better with him in position no doubt.

Sun, 11/06/2011 - 14:14 | 1850749 marsdefIAnCe
marsdefIAnCe's picture

Ok, so RP wins straw polls.  Maybe even the majority of the interested public supports him.  He does get more donations form the military than all other candidates combined.  Good stuff, I know.


How does any of this inspire confidence?  Let's suppose that God intervenes and all the diebold machines malfunction on the day of the election.  This instills panic in the paid army that controls the balloting process.  In their fear they allow RP to win the popular vote controlling a majority of the electors.  The stars align and the electoral vote is given over to RP.


Then what?  He gets nothing accomplished because the critters in Congress are quietly told their kids go missing if they go along with anything RP says?  Really, what is the end game here?

Sun, 11/06/2011 - 14:34 | 1850781 buyingsterling
buyingsterling's picture

The end game comes when every effort to change the system proves hopeless, or the system proves itself to be corrupt to enough people. Supporting Paul brings us closer to the end game. As for his leadership abilities, you should shelve that - if people vote for him it will be because they think he can lead. He's the titular leader of the freedom movement.

Sun, 11/06/2011 - 14:38 | 1850797 marsdefIAnCe
marsdefIAnCe's picture

Really?  Someone who poo-poos 9/11 truth?


There are millions of people doing a better job.

Sun, 11/06/2011 - 15:21 | 1850915 jomama
jomama's picture

i'm pretty sure he'd re-open that investigation, he's already pretty fringe for a lot of clueless americans, and that would only hurt his chances running on that platform.

Sun, 11/06/2011 - 15:30 | 1850935 traderjoe
traderjoe's picture

RP is controlled opposition. He's been in Congress for almost 40 years.

Has he ever discussed bringing back debt-free money, i.e. United States Notes?

Sun, 11/06/2011 - 15:39 | 1850947 marsdefIAnCe
marsdefIAnCe's picture

Gold standard satiates base and perpetuates the myth that elections exist in the united slaves of america.  Rothschild cartel holds 99% of gold.  Enter global currency.  Laugh all the way to the world bank.

Sun, 11/06/2011 - 15:58 | 1850979 oddjob
Sun, 11/06/2011 - 22:21 | 1851826 zorba THE GREEK
zorba THE GREEK's picture

I have no idea what titular means, but I still agree with buying sterling,

even though his initials are BS.

Sun, 11/06/2011 - 15:16 | 1850901 jomama
jomama's picture

he won't be elected because if he had a snowball's chance in a supernova, he'd be suicided first.  there is far too much power and money in the balance for the elites to let the little people in on it at this point.

Sun, 11/06/2011 - 16:43 | 1851058 Plata con Carne
Plata con Carne's picture

As Commander-in-Chief he could accomplish a great deal immediately without Congress in regards to the wars and our militarism. 

Sun, 11/06/2011 - 20:28 | 1851614 James
James's picture

Executive Order.

Sun, 11/06/2011 - 15:19 | 1850910 earleflorida
earleflorida's picture

a straw here and a straw pulled there,...  leaves a strawman unable to stand 

Sun, 11/06/2011 - 17:27 | 1851167 pain_and_soros
pain_and_soros's picture

I can't imagine that people would not seriously consider him as a credible alternative to the status quo, given the current & worsening dysfunction in Washington and finally coming to the realization that that dysfunction is actually the creation of Wall St.

If most Americans are still too apathetic or engrossed in American Idol to understand that their once great country is sliding into an abyss, then perhaps they deserve what they'll then get, but I can't believe that most are actually that dumb.

The only thing I can figure is that the incremental Republicans (& Dems) who are actually participating in the process are being paid or otherwise compensated to cast their votes to ensure Paul's candidacy is marginalized.

Aside from Paul, the entire process has become a farce and a charade




Sun, 11/06/2011 - 14:00 | 1850720 GubmintCheeze
GubmintCheeze's picture

You betcha!  Jim Grant (or Ron Paul) for POTUS! 

Sun, 11/06/2011 - 16:39 | 1851046 RockyRacoon
RockyRacoon's picture

Has it occurred to anyone why the Republican candidates (so far) are a bunch of clueless noodle-heads?   It is assumed that Obama will lose.  It is, after all, about the economy.   Republicans assume that they will win.  But they also know that there is nothing substantive that can be done about saving the economy.   It will crash.   No self-respecting Republican wants to be at the helm when that happens.   Consequently, we get a crippled and ineffective slate of "candidates".   They aren't even good enough to call them such.   Funny thing is that the slate will prove to be so bad that Obama might just win by default.   Then the Republicans are off the hook altogether.   It's seen as a win-win for them.  The U. S. will collapse under Obama which will put him in the literal cross-hairs of all the weirdos out there.   We should all be very aware of Obama's pick for VP because that person could likely end up governing from the holy Oval Office.

Sun, 11/06/2011 - 17:49 | 1851224 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's going to be Hill Clinton.

Sun, 11/06/2011 - 18:14 | 1851287 mkkby
mkkby's picture

You have it exactly backwards.  The elite have decided they want Obama for another 4.  Therefore, they've put up (via funding and media time) the lowest misfits in history to run against him.

People who seek national politics crave power.  They don't care if it's not the best time to be in power.  They need it like a drug.  They would go after Obama's job if enabled by TPTB money, influence and media ownership.

Sun, 11/06/2011 - 21:28 | 1851738 RockyRacoon
RockyRacoon's picture

Both of you are probably right.   Hillary has been getting some good (for her) mechanized press lately.   Biden the Buffoon is probably out.   As you say, regardless of popularity and ability, it takes money.   And money for the truly capable has probably been withheld.   Thanks to you both for rounding out the argument.

Sun, 11/06/2011 - 15:01 | 1850849 earleflorida
earleflorida's picture

Grant is a good & respected person on all fronts -

___RP's qualifiers[#1] & dis-qualifiers[#2}___

#1 Wants to end the FRB System -Period! 

#2  Wants to end entitlements - end  taxes [favor wealthy(plain and simple)] - massive deregulation  advocate - lifetime politician - *a texan [home of Bush#43/LBJ & **(Perry?),... the latter whose adm. eventuality will bankrupt the country and the former, who put our country on a socialist path]

Analysis: he's not a philosopher but a 'hopium addict', and the apple that doesn't fall far from the tree is an  idiot!  

Sun, 11/06/2011 - 15:41 | 1850951 Confuchius
Confuchius's picture

Eventually bankrupt the country.

Your country is already bankrupt.

What you need to do is to start more pointless wars, as all your wars are pointless.

Where have you been hiding the past 30 years?

Sun, 11/06/2011 - 14:08 | 1850739 topcallingtroll
topcallingtroll's picture

How is his personality not suited for the job?

Because he is a pacifist and sees no reason for an interventionist foreign policy?

Because he doesnt think government has the solutions and wont advocate for government to "help" the economy or "create" jobs?

What specifically makes him unsuitable?

Sun, 11/06/2011 - 14:31 | 1850772 SilverIsKing
SilverIsKing's picture

He had a very bad falling out with a TelePrompTer a few years back. You need to have strong relationships with TelePrompTers in order to be POTUS.

Sun, 11/06/2011 - 14:38 | 1850794 jomama
jomama's picture

he's pro-life and lots of women don't like that.

Sun, 11/06/2011 - 14:44 | 1850818 Jena
Jena's picture

He's pro-life and lots of women do like that.

Sun, 11/06/2011 - 15:13 | 1850881 jomama
jomama's picture

not the women i know, meaning my relatives, my co-workers, and most friends in my demographic.  


just sayin'.


* and i did say lots, not all.

Sun, 11/06/2011 - 15:56 | 1850936 Jena
Jena's picture

I know you didn't say all, jomama.  The MSM media would have everyone believe that politics is a single issue theme for all women and for a certain sector, I guess it is.  But for others, life is important, and fathers have rights, too.  I understand that it's a complex issue for many.  I also know that coming face to face with a woman who had active pelvic inflammatory disease and a (likely) unrelated history of nine previous abortions because she used it as her primary method of birth control made me more than a tad nauseated.

For pro-choice types, these is no room for discussion.  You're evil if you disagree with them.  Pretty much the same for some pro-lifers.

Sun, 11/06/2011 - 16:16 | 1850996 Jack Napier
Jack Napier's picture

In my family the women are against abortion, but for pro-choice, because they remember a time when the only choice was butcher shops that women would go to anyway. Sure Dr. Paul is correct from the standpoint of Roe v. Wade allowing Federal law to overstep its bounds in relation to state law, but this is one example where that's not the most important thing to a lot of people.

Here are my problems with Ron Paul, and as a long time supporter and former donator to his money bombs I am not just some troll out to smear him, but he is controlled opposition and I will not vote for him.

--- He wants to sell all the gold in Ft. Knox even though it's at best a couple percent of the national debt, and it's the only thing that will give our money value when fiat currency fails. (I will give him benefit of the doubt on this one in that maybe he's just trying to prove they don't really have any gold.)
--- He is a member of the Jesuit controlled John Birch Society
--- His wife and his daughters are in the masonic Order of the Eastern Star
--- HR1207 to audit the Federal Reserve was passed with no teeth. There is a 180 day delay clause for data release which means it is an empty audit that gives them ample time to cook the books as needed.

Sun, 11/06/2011 - 16:27 | 1851026 Jena
Jena's picture

I ought to have made that "some pro-choice types, there is no room for discussion."

I think you present the dilemma of Roe v Wade repeal exactly, Jack.

Sun, 11/06/2011 - 19:41 | 1851502 weinerdog43
weinerdog43's picture

Sorry, it is the jackbooted anti abortion kooks who are at fault here.  If Ron Paul wasn't such a faker, he'd realize that.  A REAL Libertarian knows that the anti abortionists are fascists to the core.  A woman should have the right to have an abortion anytime, anyplace, for any reason until birth.  If she wants to open 'Jane's fetus emporium & deli', then fine.  It is government that is preventing a valid business opportunity. 

Mon, 11/07/2011 - 01:11 | 1852097 James
James's picture

A man should have the right to shoot wienerdogs for any reason, at any time, at any place until their are no more wienerdogs.

If I want to open "James wienerdog removal service & deli then fine.

It is government that is preventing a valid business opportunity.



Mon, 11/07/2011 - 01:20 | 1852110 James
James's picture

Some years back a rich abortionists plane crashed in a cemetary in Montana.

The lives of the pilot and the abortionist were lost.

I found solace in the fact that the abortionists planes nosecone came to rest on a memorial statue remembering those aborted children.

Sun, 11/06/2011 - 14:59 | 1850860 Treason Season
Treason Season's picture

IIUC Congressman Paul's position on abortion is it is a state issue not a federal one.

Sun, 11/06/2011 - 15:07 | 1850883 jomama
jomama's picture

i'm well aware of that.

Sun, 11/06/2011 - 14:46 | 1850829 marsdefIAnCe
marsdefIAnCe's picture

>Because he is a pacifist and sees no reason for an interventionist foreign policy?


That is a good start.  Most Americans don't agree with this.  Now, it is also true that most of us don't agree with the current form of interventionism, ie, the toppling of regimes without Rothschild central banks.  The vast majority would like to see something more along the lines of what JFK wanted to do in deploying armies of experts to educate the world and increase productive capacity while removing dictators from power.  This is still interventionism even if you don't like the word because of USSA's poor history of it.

>Because he doesnt think government has the solutions and wont advocate for government to "help" the economy or "create" jobs?


Exactly!  The economy is absolutely tanked if we walk away from military control of the world's oil supply for example.  We can probably find a lot of common ground in agreeing that QE-infinity won't help, or that regulations are mostly there to make operating a small business prohibitely expensive, or that the welfare system is geared to creating an underclass for the middle class to fear, or ...


In spite of all these bad forms of government "help" you're headed straight for mass starvation if RP puts his money where his mouth is and stops government intervention in the economy.  Have fun, bro.  I'll be getting the fuck out of dodge.

Sun, 11/06/2011 - 15:00 | 1850864 Treason Season
Treason Season's picture

Please don't feed this troll anymore.

Sun, 11/06/2011 - 15:50 | 1850966 Poor Grogman
Poor Grogman's picture


You express doubts that many have about RP.

Where you flounder is that the current status quo is unsustainable.
Greater debt within a dying system choked with debt.

RPs solutions will affect a lot of people who depend on the status quo, but really they will all be affected in the end anyhow. If we Just sit back and let the current system self destruct what happens to those people then?

So at the end of the day the decision boils down to

1. RPs plan
2. No plan

Either way prepare accordingly.....

Sun, 11/06/2011 - 18:20 | 1851296 JW n FL
JW n FL's picture



RPs solutions will affect a lot of people who depend on the status quo, but really they will all be affected in the end anyhow.

I hope the hungry, armed masses show up at your house first.

I hope that when you meet God.. You can explain how 7 - 8% of GDP to sustain ALL Social Programs in America was just to much to pay.. whent he rest of the bottom feeders of the World dont pay anything near that much money to help their fellow man, woman or child.

Scratch that.. I dont hope for either one of those things...

I hope that you and your kind get shipped to the jungles of Africa where you can live with your fellow Animals in pure austerity!

and if that doesnt work out.. you traveling to your version of heaven on Earth.. I can promise you when the lights go out and the masses are swarming looking for food.. there will be a small group hunting you sick fucks down like the animals you are.. feel free to quote me!


Sun, 11/06/2011 - 16:07 | 1850993 Confuchius
Confuchius's picture

You are a typical warmongering peasant.

Sun, 11/06/2011 - 14:30 | 1850771 Freddie
Freddie's picture

People in the USA are too busy obsessing with college ball games and that fat arsed dwarf Kim Kardashian versus being slaves to the Fed and the elites.  I wish Rand Paul was running instead of the dad.

Sun, 11/06/2011 - 14:52 | 1850842 Piranhanoia
Piranhanoia's picture

Mr. P does not interrupt to make ridiculous gestures or statements and is not an MSM soundbyte.  So he's going to have to figure out how to communicate real soon.  He might consider trying to set up a real debate with the other candidates, for this would be like forcing these wannabe GW's to read a book on live TV,  it just couldn't happen without exposing they are mentally inferior to frogs.

I hope Mr. V goes all in myself. I want someone sick to death of government and their games.


Sun, 11/06/2011 - 15:33 | 1850940 s2man
s2man's picture

In the book, Aftershock, about U.S. post bubble-popping, they predict we will continue to elect clowns for another two or three terms before we get someone who is serious.  i.e., after its too late and everything is completely trashed.

Current bubbles deflating: real estate, stocks, private debt and discretionary spending.

The last two to be go: the dollar and U.S. government debt.

Of course, that is just their trajectory for the U.S.  They had no idea, when written, how much Europe was going to help speed things up.

Sun, 11/06/2011 - 16:03 | 1850988 CapitalistRock
CapitalistRock's picture

So you prefer government based on a cult of personality, huh? That's not worked out too well in history. Obama is only the latest example, but he's certainly not the first.

Sun, 11/06/2011 - 17:38 | 1851185 Backspin
Backspin's picture

I'll gladly take Ron Paul the non-leader philosopher over any of the crooks and morons we have in there now or any of the crooks and morons currently in the race.

Mon, 11/07/2011 - 00:20 | 1852032 anomalous
anomalous's picture

Ron Paul would be a very different sort of president. We need a very different sort of president, like Ron Paul.

Maybe after 8 years of less charisma we'll be better off.

Sun, 11/06/2011 - 15:53 | 1850974 RiverRoad
RiverRoad's picture

I presume from remarks Ron Paul has made in the past that the Fed he would like to see Jim Grant chair would be run in a legitimate fashion and audited.

Sun, 11/06/2011 - 13:58 | 1850711 topcallingtroll
topcallingtroll's picture

I thought it was a decent interview. Wasnt that the one where he got the Liesman to admit that a gold standard makes sense?

Sun, 11/06/2011 - 14:35 | 1850785 smlbizman
smlbizman's picture

i want his bow tie to either shoot these lame-o's in the face with water...or have it spin like a propeller ...

Sun, 11/06/2011 - 19:20 | 1851458 caconhma
caconhma's picture

The Central Banking Oligarchy Power Elite (PE) exercises total & complete control over the US & European financial and political life. These gangsters have no desire to lose or even compromise their power, control, and privileges.  They will stop at nothing, including extreme violence and wars, to preserve & expand their power.

Consequently, any expectation of the Power Elite will somehow allowing a peaceful transfer of their power through free & honest elections is outright naïve & stupid. No political candidate, outside of chosen by them, has any chance to be elected or even survive. This is the reality and everything else is just a wishful thinking.


Sun, 11/06/2011 - 19:45 | 1851508 Max Fischer
Max Fischer's picture



I don't agree with the implications of your comment.  You're suggesting that it's basically impossible to break up the banking oligarchy.

Not true. 

Theodore Roosevelt, the "Trust Buster", broke up both Standard Oil and Northern Securities during a time when it seemed equally impossible to control these mega-powerful, monopolizing trusts. 

We simply need a real leader who is not bought and paid for, and we need a population that isn't so easily distracted with American Idol, birth certificates and death panels.

Max Fischer, Civis Mundi



Sun, 11/06/2011 - 21:39 | 1851759 RiverRoad
RiverRoad's picture

True.  Unless,of course as you say, that transfer of power is not peaceful which has happened many times over in the course of human history.....

Sun, 11/06/2011 - 13:39 | 1850677 Yellowhoard
Yellowhoard's picture

A "little inflation" is like playing "just the tip, see how it feels".


Sun, 11/06/2011 - 14:58 | 1850857 topcallingtroll
topcallingtroll's picture


I tried that in high school and we both really believed we could hold back.

Aahh. Those innocent days!

Sun, 11/06/2011 - 13:40 | 1850678 lynnybee
lynnybee's picture

Jim Grant ...... super cool, super right .    

Sun, 11/06/2011 - 14:32 | 1850776 Freddie
Freddie's picture

Jim Grant, Hugh Hendry, Jim Rogers, Marc Faber and to a lesser extent Jim Chanos are the only truth tellers out there.


Sun, 11/06/2011 - 15:09 | 1850890 RiverRoad
RiverRoad's picture

Hey!  Don't forget Tyler!

Sun, 11/06/2011 - 13:47 | 1850684 The Deleuzian
The Deleuzian's picture

I'm keeping all of my pennies and nickels that pile up in my car ashtray and at home...They may come in handy...Like silver coinage back before I was an 'earthling'...It all adds up right!

Sun, 11/06/2011 - 13:46 | 1850685 FoieGras
FoieGras's picture

Grant has been calling for a bond bear market and exploding inflation for what like 10 years now? I stopped counting. Broken clock syndrome.

Sun, 11/06/2011 - 14:04 | 1850728 midgetrannyporn
midgetrannyporn's picture

You will get a steady diet of bond bears and gold bugs on zh. It goes with the territory.

Sun, 11/06/2011 - 15:07 | 1850884 topcallingtroll
topcallingtroll's picture

Dont forget survivalists.

We have every kind of freak imaginable including libertarians like me who love guns drugs and whores. It makes this place fun. Even socialists drop in from time to time as well as jewbaiters.

Gosh I would be in heaven if I could fuck a hot escort on the bench rest while snorting a line and firing my assault rifle. Lifes three greatest pleasures rolled into one hedonistic debauched afternoon.....but I digress.

Sun, 11/06/2011 - 15:43 | 1850956 Isotope
Isotope's picture

I find your ideas interesting and would like to subscribe to your newsletter.

Sun, 11/06/2011 - 22:21 | 1851825 goat
goat's picture

+69 and an 8-ball and some 8mm kurz

Sun, 11/06/2011 - 14:35 | 1850782 Freddie
Freddie's picture

I guess you never shop at grocery stores and places like Lowes.  Inflation is not exploding but prices are going up a lot.  It is the devaluation of the dollar.   In the past 10 years - the dollar has lost more than 35% of it's value aka making Grant right and making you a tard.

Sun, 11/06/2011 - 14:43 | 1850814 FlyingDutchman
FlyingDutchman's picture

Prices have definitely gone up here in Europe too.

But if I understood well, Hendry says in his last interview the UK is not experiencing inflation, rather a relative price adjustment.


Sun, 11/06/2011 - 15:14 | 1850895 topcallingtroll
topcallingtroll's picture


Economists dont like the word inflation because it is imprecise and lack of precision could lead to wrong conclusions and wrong policy responses.

If this is a rebalancing in a deleveraging environment then it would definitely be the wrong policy to advocate reducing money supply

Sun, 11/06/2011 - 14:57 | 1850853 falun bong
falun bong's picture

This is what people don't understand about inflation. 2 or 3% inflation steals about 50% of your money in about 9 years. 96% loss since the Fed was introduced in 1913. When money was based on precious metal, before fractional reserve banking and fiat money, prices stayed the same for hundreds of years at a time.

Get educated: read The Creature from Jekyll Island

The Fed was created because the NY money center banks were losing market share to California, Texas, and Midwest banks, who were financing customers directly. The NY banks bought Congress, and convinced them to pass a law giving the NY banks monopoly cartel power to isssue (loan) money. Simple as that.

Sun, 11/06/2011 - 16:03 | 1850987 FoieGras
FoieGras's picture

"When money was based on precious metal, before fractional reserve banking and fiat money,prices stayed the same for hundreds of years at a time"

This of course is one of the big myths. Why do peolpe believe there can't be inflation on a gold standard? Between 1916 and 1920 there was 40%+ price inflation despite the gold standard.


Sun, 11/06/2011 - 16:33 | 1851033 chubbar
chubbar's picture

Was that because the gold standard was followed or because it was ignored?  Seems to me that the gold standard is pretty ineffective if fractional reserve banking is allowed (1913). How about looking at the 100 years previous to 1913, or would that render your thesis mute? I'm personally for letting gold be free of all gov't interference and the price floats against all the printing (and made legal tender without taxation for transfers between currencies).

Sun, 11/06/2011 - 20:55 | 1851671 OrestesPenthilu...
OrestesPenthilusQuintard's picture

Foie - we were printing like madmen to pay for WWI.  


We were ignoring the gold standard so we could "save the world for democracy" ala Woodrow Wilson.  80% of the country did not want to go into the war.  The world's greatest (up to that time) propoganda machine was put into high gear.  Look up George Creel.


But you knew that already.  As you know all of the 'Big Myths'.


Your progressive "educators" would be proud, imbecile.  

Sun, 11/06/2011 - 16:21 | 1851009 Al Gorerhythm
Al Gorerhythm's picture

And looking around the bond market and considering the price of essentials rather than widgets, your point is.............??? Ever tried a cursory glance out of the side of those rose colored glasses? 

Sun, 11/06/2011 - 13:48 | 1850692 RTFM
RTFM's picture

He is an asshat.

The Fed is not printing. He instantly loses any credibility in the first clip.

I get my news from Karl Denninger instead.

Can you say DEFLATION?

Sun, 11/06/2011 - 14:13 | 1850748 centipede
centipede's picture

Have you ever heard of monetary base and seen the charts?

How can this happen if Fed is not printing?

Can you say INFLATION?

Sun, 11/06/2011 - 14:18 | 1850753 GeneMarchbanks
GeneMarchbanks's picture

Can you monkeys say BIFLATION.

You're both right... yet also somehow wrong. Economic dogma aside, following Denninger shouldn't get a person junked, except for that gold call.... .... on second thought never mind junk away.

Sun, 11/06/2011 - 14:24 | 1850759 midgetrannyporn
midgetrannyporn's picture

Yeah, write "gold bitchez" a lot on zh and you will never get junked. LMAO

Sun, 11/06/2011 - 14:31 | 1850774 The Deleuzian
The Deleuzian's picture

Jim Puplava and Doug Noland have been beating that drum for years...Totally agree:

A)  Things you do not need go down in price (vs. the dollar...Flat screens etc...)

B)  Things that you do need go up in price (vs. the dollar...gas , food, medicine etc..)

Sun, 11/06/2011 - 15:19 | 1850907 topcallingtroll
topcallingtroll's picture

Can you monkeys say stagflation?
You act so proud thinking you have invented the wheel.
( its been known since before most of you were born.

Sun, 11/06/2011 - 14:29 | 1850767 Unprepared
Unprepared's picture

Why people can't hold these simple thoughts at the same time is beyond me - they are not contradictory:


 - We are in a deflationary trap


 - The trap can only occur as a result of an extended period of one-sided inflationary policy


 - The CB's trying to halt the deflationary spiral and are steps away from full-blown monetization of debt


Before you go and call yourself a deflationist or inflationist, please specify what are you talking about: i. the last 30 years, ii. 2007-2008 crisis, iii. 2009-2011 CB's fight back and continued systemic stress, 2012 -... what the Fed would be doing once it realizes the deflationary force is unbearable (Japan's and great deflation specters) and whether they will be inclined to use their last tool

Sun, 11/06/2011 - 14:38 | 1850798 Freddie
Freddie's picture

What deflation?  All across the food complex - prices have gone up a lot.  Go to Lowes or home depot and prices are up a lot. Grocery stores - prices up.   The only "deflation" is in housing prices and some commercial real estate.

The dollar is being devalued by about 5% a year.

Sun, 11/06/2011 - 15:55 | 1850923 Max Fischer
Max Fischer's picture



What deflation?

The deflationary collapse via a credit and liquidity vacuum you would have seen without the $20+Trillion* in financial subsidies given to our financial oligarchies over the past four years to keep their entire system afloat.

So, yes, there has been some inflation, but it took trillions and trillions and trillions to get it, and its been diffused very unevenly thoughout our economy. It's gone to US equities, treasuries, bank reserves, and most of the commodity complex, which, in turn, has found its way into our grocery stores. However, had the Fed done nothing, as many here wanted, the spine of the US would have been snapped in half and there would no longer be debates whether deflation exists or not under a fiat system.

And by the way, deflation is NOT just isolated in housing; we have deflation in wages which is fundamental to whether or not real ubiquitious nflation begins to diffuse itself across our economy.

Max Fischer, Civis Mundi   

*aggregate amount compiled by Simon Johnson and James Kwak



Sun, 11/06/2011 - 13:50 | 1850697 Snakeeyes
Snakeeyes's picture

Countless economists/analysts call for a bearish bond market. Eventually, it will occur. But as long as Europe can sign phony austerity agreements and FED/ECB can print currency, the day of closure will be postponed.

The U.S. can't stop spending either. And Congress wants to increase the GSE conforming loan limits to guarantee expensive mortgages at taxpayer expense.

The US is the United Greek-like States.

Socialist death spiral.

Sun, 11/06/2011 - 15:19 | 1850908 RiverRoad
RiverRoad's picture

And as long as the Banksters can feast on our children and spit out the bones the day of closure will be postponed.

Sun, 11/06/2011 - 13:52 | 1850702 PulauHantu29
PulauHantu29's picture

I did notice food prices are up 40% almost across the board in the last two years...mostly the frozen stuff and some canned food. Health care costs and education costs have literally soared.

He makes some good points.

Sun, 11/06/2011 - 13:53 | 1850705 Marigold
Marigold's picture

If elected I suppose his first act would be to make himself and the FED redundant !

Sun, 11/06/2011 - 13:55 | 1850708 aleph0
aleph0's picture

Rather surprised in his last piece , that he simply skipped over the 1907 banking crash .
... which was of course later "used" to justify the creation of the FED.

The problem with "any" standard, is that the banksters always find a new way to cheat.

And there we have it IMO : Political + Banking fraud is the essence of why all of these "systems" eventually fail.
... and why the "political party" system has to be scrapped ... for something more transparent and accountable.


Sun, 11/06/2011 - 13:57 | 1850709 Jayda1850
Jayda1850's picture

Grant is one of the few people who realizes the reason people are riotting and marching in the streets, and will continue to do so, is that the growth of basically the past 40 years has been based on nothing but debt. In that time people have grown accustomed to this unsustainable growth and the lifestyle that procceeds it. We're probably looking at one of the largest deleveraging eras in human history. Revolution will occur when the sheeple wake up to the fact that the elevated stand of living of the past 40 years was nothing but a debt fueled mirage and the economic malaise we are now in is the bitter new normal. How long before society breaks down? has it started already?

Sun, 11/06/2011 - 14:03 | 1850725 topcallingtroll
topcallingtroll's picture

If the lowered standard of living as we see the results of a debt fueled binge inevitable then why riot? It doesnt change anything. They arent smart enough nor organized enough to hang the financial oligarchs

But it is fun to watch the stupid proles get mad.

Sun, 11/06/2011 - 14:26 | 1850764 marsdefIAnCe
marsdefIAnCe's picture

This is such nonsense.


The debt mirage decreases productive capacity by diverting resources to whores, coke, and assassins to maintain the system.


Disappearing the debt doesn't make the factories go poof.  There is absolutely no reason the people can have as many goodies tomorrow as they do today without the ponzi.  In fact, they'd get much, much more over the long term.

Sun, 11/06/2011 - 14:31 | 1850773 topcallingtroll
topcallingtroll's picture

Whores and coke optimize my personal utilities and improve my standard of living as I define it.

It is not a misallocation of capital, but the consumption of such should be kept in moderation according to the teachings of Ghautama Budda and the philosophy of the middle way.

Sun, 11/06/2011 - 14:36 | 1850788 marsdefIAnCe
marsdefIAnCe's picture

Whores and coke may optimaize your personal utilities but the current method of delivery does not.


For example, in a free market the CIA wouldn't have a monopoly on the coke trade and whores wouldn't be illegal.  I probably don't need to point out that such conditions would drastically increase the supply of desired goods that are available to you.

Sun, 11/06/2011 - 14:40 | 1850803 topcallingtroll
topcallingtroll's picture

I appreciate you clarifying your position.

The misallocation is due to inefficient pricing of coke and whores due to barriers to entry in the market and lack of quick dessimination of pricing signals.

Damn you CIA!

Sun, 11/06/2011 - 14:27 | 1850765 onarga74
onarga74's picture

O O Domino...It has started and this week the 2nd domino will fall.  Greece is back to Friday b4 the open status as the government has finally landed on the planet Fubar.  They will be joined shortly by Italy which is about 20 kilometers away from the iceberg.  From TD's post earlier...

"The time, however, is short for a final solution: "With euro zone finance ministers due to meet on Monday, senior socialist lawmaker Telemachos Hitiris said: "Everything must be done within the day, otherwise tomorrow it will be hell." How many times have we heard that before. And it very well may be hell, however it will no longer come from Greece but from Italy, whose 10 Year bonds closed at the lowest price ever and where a margin raise by LCH now appears imminent, making another step function move lower almost inevitable."

A new nation is being formed right before our eyes...the not so sovereign Republic of Gritaly

Sun, 11/06/2011 - 14:45 | 1850825 Freddie
Freddie's picture

Hugh Hendry has said the same things as Jim Grant - the faux prosperity has all been fueled by debt.  

Sun, 11/06/2011 - 17:20 | 1851040 Al Gorerhythm
Al Gorerhythm's picture

The faux prosperity has been fueled by the suppression of the value of your labor when priced in paper. If you were paid in Picassos, they'd have to print more just to keep up with demand. The value of your Picasso from last payday is undermined by the additional Picasso created today. If the value of the Picasso falls, retailers demand more to cover the replacement cost of the product they sell. 

When you see the value of a house rise in Picassos, your faux prosperity impression is based on the notion of previous purchasing value of past labors, rather than realise that the Picasso is worth less. 

You are none the richer and none the wiser if you hold onto the belief that your monetary system remains stable in a supply onslaught. Ignore supply side printing or digital creation, (money yet to be printed) at your own peril.

Sun, 11/06/2011 - 13:58 | 1850710 PaulSchiffT
PaulSchiffT's picture

He thinks ending it right away is to drastic, but he is in favor of competing currencies.
On: Grant would be a nice change, maybe even something we can believe in?

Sun, 11/06/2011 - 13:58 | 1850713 zeneta
zeneta's picture

The true question is the one of TIME. time until the great awakening.

We can be 100% correct in our analysis and lose money.

When and how it happens is the trick.

A triggering event?

What will that look like?

When it happens, will it be too late?

How long and how deep will the great unwind go?

Or, are we going to continue to watch this train wreck in slow motion?

Best of luck







Sun, 11/06/2011 - 14:00 | 1850716 Oswald Spengler
Oswald Spengler's picture

The dude looks like a geek...Gives him credibility in my book. 

Sun, 11/06/2011 - 22:04 | 1851799 chindit13
chindit13's picture

That "geek" is an athletic 6'7" and was quite the baseball player in his youth.  Book by its cover and all that.....

Sun, 11/06/2011 - 14:00 | 1850721 The Deleuzian
The Deleuzian's picture

Biggest, largest, scariest, hairiest 'bubble' ever is surely the 10 year treasury...It either breaks through (kind of like a square peg through a round hole) or is the bust of modern times...Either way...Dig a freakin' hole 

Sun, 11/06/2011 - 14:36 | 1850789 topcallingtroll
topcallingtroll's picture

Not if the dollar is the sole source of marginal liquidity and the usa is still the source of marginal consumption.

It will survive the euro crises with low rates intact. Treasury yield curves are signaling this state of affairs can go on for a long time, at least until third world economies have significant consumer demand.

Sun, 11/06/2011 - 14:58 | 1850855 The Deleuzian
The Deleuzian's picture

Any major central bank with a printing press (or electronic equivalent) can suffice...The Yen carry trade has been the whore of dollar hegemony for a decade...I agree, it's difficult to call tops with bubble dynamics but bubble dynamics it certainly is...

That Marginal consumption is ever limiting and decreasing...Sure, and I agree that the $ will shine compared to the EU but so what...The PRC cannot handle both a weak $ and EU....Fault lines will rub and give for sure........

Sun, 11/06/2011 - 15:24 | 1850919 topcallingtroll
topcallingtroll's picture

No reason to worry or change your strategies until China has sufficient internal consumption demand and is ready to float.

Then everything changes.

Sun, 11/06/2011 - 16:20 | 1851008 The Deleuzian
The Deleuzian's picture

That is precisely what I am always on the look out for...

Sun, 11/06/2011 - 15:51 | 1850967 s2man
s2man's picture

Bubbles, bubbles.  See my post, above. 

Sun, 11/06/2011 - 14:06 | 1850733 ozziindaus
ozziindaus's picture


It's easy to agree and disagree with Jim Grants arguments. 




Fed's intention to debase the currency. Decades old American corporate investment in emerging markets yields greater dividends with a debased currency. The prime ingredient in this strategy is for the counterpart producing nation (China) to "peg" its currency to USD whilst the consumer nation inflates. Unfortunately, the consumer gradually lost their earning potential which rapidly resulted in deflation.


The Fed DOES NOT effectively set interest rates. The FED Funds rate ALWAYS lags the open market interest rate (Treasury yields). 

Gold Standard is the worst thing a fiscally conservative economist should suggest. Gold is concentrated in too few hands. Those in control of the gold will then set prices and not the market. If you haven't already realised, oil has already taken this role since the gold standard was severed and for good reason. It's more useful, consumable and readily available. 


Sun, 11/06/2011 - 14:22 | 1850756 centipede
centipede's picture

Gold Standard is actually much better in soaking up the collapsing debt bubble and creating liquidity than oil. How is the economy going to work and grow when oil price shoots to the moon? High oil prices will suffocate the economy. Nothing like that will happen with high gold prices.

Sun, 11/06/2011 - 15:26 | 1850926 RiverRoad
RiverRoad's picture

Gold is the glue holding the world together right now.

Sun, 11/06/2011 - 15:55 | 1850975 earleflorida
earleflorida's picture

gold sets the benchmark for equilibrium  in world markets - this so called relic is  the foundation of our monetary [fulcrum*] system -  an intrinsic counter intuitive strategy,  that has worked successfully  for millenniums balancing deflation with  inflation with little or no help of outside  intervention

ps. it would simplify the FRB dual mandate into a singularity[?] - just worry about getting stable employment    

Mon, 11/07/2011 - 12:44 | 1853488 ozziindaus
ozziindaus's picture

"How is the economy going to work and grow when oil price shoots to the moon?"

Who says oil will shoot to the moon? It's used and consumed and it's value is set by the global market (disregarding speculation and manipulation through cartels). You dont think gold prices can also be manipulated?


Sun, 11/06/2011 - 16:37 | 1850937 chubbar
chubbar's picture

Let's see, Gold is concentrated in too few hands so lets use Oil???? WTF? How many folks (or countries for that matter) have an oil well on their property? Readily available? For who? Yeah, I can buy gas as long as FRN's are accepted and the gas available at the pump but I wouldn't know where to buy a barrel of oil. How long does it store? At least I can carry 1700$ in gold around, try that with oil!

Besides that, the fact it is a consumable is an argument against its use as a currency, not for? I guess I'm missing his logic.

Mon, 11/07/2011 - 12:37 | 1853445 ozziindaus
ozziindaus's picture

I'm not giving you my opinion or suggestion. I'm simply stating the fact that Oil is the Gold proxy since it was severed. Remember FRN's are still the reserve currency of the world and used to purchase oil globally. This prerequisite helps stabalise the value of the dollar whether you agree with it or not.

Sun, 11/06/2011 - 16:45 | 1851064 trembo slice
trembo slice's picture

the gold standard was severed because of years of inflationary monetary policy which made delivering on the exchange rates set at bretton woods impossible.  we had a gold standard, much like we have a constitution... doesn't mean we adhere to them.

Sun, 11/06/2011 - 14:32 | 1850775 disabledvet
disabledvet's picture

"finance" and "lies" cannot coexist in the same sentence. this is not Fukushima where "people get bored by jargon and move on." This is something people understand: "is your savings account safe"--and "are the people i am giving my savings to people of good character?" the answer on both counts is "absolutely no." Governments are going apoplectic because without a "lack of spending by the people" the "government cannot be spent into prosperity." Hence all the "lingnastics." (Linguistics plus gymnastics.) The bottom line is that MF Global has probably blown a trillion dollar hole in the "financial system." Well...that money has to be..."made up" from some(one) where...and since the concept of "taxpayer" has now been must come from "money hell." Most people assume (rightly in my view) "another round of QE." I say Greece shows the "wave of the present" however: soaring interest rates, municipal BANKRUPTCIES and funding crises throughout the totality of "government" itself. To give a specific "probabalistic event": what if the entirety of the food stamp program now run by Groupon?

Sun, 11/06/2011 - 16:01 | 1850982 earleflorida
earleflorida's picture

ah, just throw a couple of obami's solar, and alt. energy projects in the mix to balance the account

Sun, 11/06/2011 - 14:32 | 1850777 CustomersMan
CustomersMan's picture

Non-Violent Effective Action: Advantage, American Citizens

       There is an action that many people can take that is non-violent and perfectly legal and will give individuals more clout, and expose the banks for the greedy lot that they are.

       The government sends out electronic funds, Direct Deposits to banking institutions each month, ostensibly to save time and mailing costs and for security reasons. That may be true but there are other not so ethical reasons.

       But the US Government also sends out US Treasury checks.

        The banks are taking advantage of the Direct Deposit Money they get each month. They know when the money comes in, they know when and how the money gets spent, and they take advantage of these deposits, the information derived from spending patterns, and exploit it for their own benefit.

        By asking for a check each month instead of Direct Deposit, you are able to take this most coveted form of money (a US Treasury Check) and spending pattern information away from them, and decide where you want to deposit it or cash the check. Set-up a few accounts with smaller banks or credit unions, leaving a minimum balance. You can even take out most of the cash so that you have it and not them.

        And remember each bill we use as currency says "This Note Is Legal Tender For All Debts, Public And Private".  This is a legal contract and you legally can not be discriminated against for using cash.

This will take the power away from the banks that are counting on it and exploiting it and give it back to you, the owner of the funds.

        By the way, the more they resist issuing you a monthly check, the more certain you can be, that there is a undisclosed advantage to the banks in getting your direct deposit money.

        Its time to take back what  is ours, NOW.

Sun, 11/06/2011 - 15:36 | 1850943 RiverRoad
RiverRoad's picture

Can direct deposits be sent to credit unions?  Some people worry about checks being stolen in the mail.  Any time we can take back what is ours.....great.

Sun, 11/06/2011 - 17:00 | 1851103 Plata con Carne
Plata con Carne's picture

Yes, absolutely.

Sun, 11/06/2011 - 14:32 | 1850778 Long-John-Silver
Long-John-Silver's picture

Anyone else notice the blimp flying around and then appearing to fly into his ear in the last interview?

Sun, 11/06/2011 - 14:44 | 1850822 suckerfishzilla
suckerfishzilla's picture

The dollar is backed by copper lead depleted Uranium and the DOD.

Sun, 11/06/2011 - 14:53 | 1850845 Georgesblog
Georgesblog's picture

This weekend feels like the calm before the storm. Something has to happen, even if it's wrong. The Euro bailout plan is no plan, at all. Instead of dealing with the debt disease, they are trying to treat the currency symptoms with imaginary manipulations of things that never existed, to begin with. We’ve seen what happens when the various factions are not on the same page.

Sun, 11/06/2011 - 14:59 | 1850858 RiverRoad
RiverRoad's picture

Jim Grant would be the best thing that's happened to this country since Alexander Hamilton.

Sun, 11/06/2011 - 15:08 | 1850886 GeneMarchbanks
GeneMarchbanks's picture

That doesn't make any sense.

Sun, 11/06/2011 - 15:29 | 1850932 topcallingtroll
topcallingtroll's picture


Hamilton was a big proponent of central banking.

Andy Jackson would be a better hero of libertarians except for that embarrassing little ethnic cleansing episode and genocide called the trail of tears.

Sun, 11/06/2011 - 15:39 | 1850948 RiverRoad
RiverRoad's picture

Alexander Hamilton's concept of central banking was nothing like the abortion that exists today.  I'm sure he's turned over in his grave as all the founding fathers have.

Sun, 11/06/2011 - 15:32 | 1850939 moondog
moondog's picture

I do hope this is said with sarcasm. Hamilton supported the first US central bank.

Sun, 11/06/2011 - 15:13 | 1850894 speconomist
speconomist's picture

Isn't Jim Grant a cool guy? He can pull of a bow tie and a dirigible/blimp appears right behind him when he's on TV

Sun, 11/06/2011 - 15:16 | 1850899 apberusdisvet
apberusdisvet's picture

Tyler:  OT but why cant the replies line up with the comments like they used to?

Sun, 11/06/2011 - 15:21 | 1850913 Atomizer
Atomizer's picture

For those who embark upon MMT (Modern Monetary Theory), the quiz is over. Open debate on the results is up to you.. I'm sure you all participated. /sarc


Saturday Quiz – November 5, 2011 – answers and discussion



Sun, 11/06/2011 - 16:04 | 1850990 Atomizer
Atomizer's picture

I really enjoy Jim Grant's points.


However, Central Planners work within Maslow's Hierarchy of Needs and Motivation to push the envelope in forming new societies.

Sun, 11/06/2011 - 16:10 | 1850997 Antifaschistische
Antifaschistische's picture

Why inflation is not the enemy. 

Example:  1,000 of us live on an island where we had an established form of fiat currency.  Let’s say the total money supply is 1,000 island dollar for every islander.   We may choose to rebase our currency because the 1,000 does not provide the appropriate divisibility of labor and material to effectively promote commerce.    When the smallest unit is 1 island dollar and that buys 300 bananas, we will want units smaller than dollars so we we devalue the dollar in some way that will allow us to buy 3 bananas rather than 300.

At its most fundamental level, this is what debasing a currency does.  To that extent, if I pay $5 for a hamburger or $50 for a hamburger, it is really irrelevant as long as the amount I pay is appropriate for the labor I expended to receive my hamburger. (e.g. making $10 per/hour vs. making $100 per/hour)

But in our situation there is an enemy and it is not inflation.

In the island example, if we rebased our currency by giving all 1,000 citizens an extra 99 island dollars then that would be equitable.  But that’s not what happens when we debase the US Dollar.   Our currency debasement is identical to counterfeiting where the first spenders of the counterfeit currency (or debt) benefit and the non-counterfeiters ultimately lose through currency devaluation.

If on our island, one individual had the ability to print island dollars and did so every Friday he could eat and enjoy a posh island life with no productivity at all…just living off the productivity of others with zero contribution to society as prices slowly rose due to increased money in circulation.  The spending with zero contribution is the immoral act.

On our own economic island (America) the guy who prints money every Friday is the Fed and the banking industry with zero productivity and contribution to society.  The early spenders of those dollars are banks, governments and large corporations.  Everyone else gets screwed.   If the Fed debased our currency with the proverbial helicopter drop it would be more fair.   But allowing the Fed to be the printer (debt issuer) results in a fascist class like we’ve never seen and lines the pocket of billionaires and millionaires FIRST before filtering down to those who do real work.

…but it’s a complex game, and if the 99.99% really knew how the .01% was screwing them every day we could change the game.  But today, there's no escape.   Even gold and silver can't outrun the counterfeiters but only provides a consolation prize when all other semblances of wealth have been destroyed.


Sun, 11/06/2011 - 16:23 | 1851011 Atomizer
Atomizer's picture

Someone else has figured out the lie. Tips hat to you.

SDR Valuation

With effect from January 1, 2011, the IMF has determined that the four currencies that meet the selection criterion for inclusion in the SDR valuation basket will be assigned the following weights based on their roles in international trade and finance:

U.S. dollar 41.9 percent (compared with 44 percent at the 2005 review)

Euro 37.4 percent (compared with 34 percent at the 2005 review)

Pound sterling 11.3 percent (compared with 11 percent at the 2005 review)

Japanese yen 9.4 percent (compared with 11 percent at the 2005 review)

The criterion used to select the currencies in the SDR basket remains unchanged from the 2000 and 2005 reviews: the currencies included in the SDR are the four currencies issued by Fund members, or by monetary unions that include Fund members, whose exports of goods and services during the five-year period ending 12 months before the effective date of the revision had the largest value, and which have been determined by the Fund to be freely usable currencies in accordance with Article XXX (f) of the Fund’s Articles of Agreement. The weights assigned to these currencies continue to be based on the value of the exports of goods and services by the member (or by members included in a monetary union) issuing the currency and the amount of reserves denominated in the respective currencies that are held by other members of the IMF. These initial currency weights are rounded to one decimal place, rather than to the nearest whole percentage point as in past reviews.

The amounts of each of the four currencies to be included in the new SDR valuation basket will be calculated on December 30, 2010 in accordance with the new weights, and will go into effect on January 1, 2011. The calculation will be made on the basis of the average exchange rates for these currencies over the three months ending on that date in such a manner as to ensure that the value of the SDR will be the same on December 30, 2010 under both the revised valuation and present valuation baskets.

Mon, 11/07/2011 - 04:09 | 1852268 Ponzi Unit
Ponzi Unit's picture

Antifaschistische, that is deep. A compelling argument.

First spenders as parasites and cheats...

Sun, 11/06/2011 - 18:38 | 1851341 JW n FL
JW n FL's picture








If ideas could file for bankruptcy protection, the modern model of money and banking would have beaten MF Global Holdings to the courthouse. The concept of leveraged finance in a world of paper money and socialized risk deserves rehabilitation under an intellectual Chapter 11.






Market timing--indeed, active investment management of any kind--according to John Bogle, the index-fund pioneer, Vanguard visionary and must-read author, is "by definition, a loser's game." When and how to pick a fight with Mr. Market was the day's constant topic.






Emanuel Derman, the former theoretical physicist whose "Models. Behaving. Badly" was published 24 hours before the Grant's event, held forth after lunch on the difference between a theory and a model. The late Milton Friedman should have been there.






"I don't believe there is any upside anymore, "said Carl E. Walter, who worked in the People's Republic for 20 years and together with Fraser Howie, wrote "Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise." Walter lived in China and invested in China--"invested my career in China"--but now, he said, he is through.






Sooner or later, Bill Fleckenstein told the Grant's faithful, the bond market and/or the currency market will force the Fed to cease and desist. Pending that happy denouement, he went on, gold is the thing--that and Mongolia.






R. Brad Martin, Tennessee-based entrepreneur and investor, told the conference-comers about government regulation (suffocating), corporate governance (often inept), and where and why he's investing.






"It took us four and a half decades to get where we are," said David Bonderman, the leadoff speaker at the Grant's event, "and we're not cleaning it up in 18 months….On the other hand, the world isn't coming to an end, either."






In response to a question from the audience, John Bogle held forth on exchange-traded funds: "When I studied the [mutual fund] industry at Princeton, I thought: 'What a miracle! You mean you can get your money back by redeeming your fund's shares any day you want to do that? How can that be possible?' Now, that's not good enough."






The median income of the American household has risen fourfold since 1971, according to Sean Fieler. Yet, over same span of years, the dollar has lost 82% of its purchasing power, which reduces the improvement in median household income to just 16%. Blame the shrinking dollar, said our speaker, but don't try to rehabilitate it.






If Monday's attempt by the Bank of Japan to cheapen the yen, its third in a year, is no more successful than the first two tries, the Japanese unit is on its way to new highs. Simultaneously, the Japanese stock market is approaching new lows, official purchases of exchange-traded funds notwithstanding.


Sun, 11/06/2011 - 19:04 | 1851409 DavidDavid
DavidDavid's picture

I like Grant.  But let's face the facts.  He has been predicting higher interest rates for over a decade.  He's been totally wrong.  Hey Jim, don't fight the Fed.

Sun, 11/06/2011 - 20:38 | 1851634 Clint Liquor
Clint Liquor's picture

Unfortunately for Grant, he seriously under-estimated the incompetence and stupidity of the Central Planners.

Sun, 11/06/2011 - 22:31 | 1851841 linrom
linrom's picture

Where is the QEIII that he so assuredly said would come? "Articulate moron" since 1980s Luis Rukeyser days on Wall Street Week as a regular panelist. With a track record like that, Wall Street is the only place that would guarantee him lifetime job.

Mon, 11/07/2011 - 01:14 | 1852104 slvrizgold
slvrizgold's picture

Oh its coming all right.   You must be one of the ADHD generation kids cooked on flouride, mercury, aspertame, and MSG.    Have some patience "linrom."

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