Jim Grant: ZIRP “is a policy for Greenwich, CT… It’s great if you can fund at 0%.”

In his latest CNBC interview, Jim Grant blasts the Federal Reserve for its lax monetary policy. In the process he reveals who exactly benefits from low interest rates (those with access to this cheap capital; banksters & the ones they choose to loan to).

Takeaways:

  • Thinks Fed should have started raising rates 2 years ago.
  • Says he and Bernanke “don’t talk anymore” when questioned about what Ben thinks of his critiques.
  • Harshly critical on unintended consequences of the Fed’s “radical interventions”. Remarks that “we are lab rats in the financial markets of the world”.
  • “[low rates/QE] is a policy for Greenwich, CT… It’s great if you can fund at 0%, if you’re on the inside and you know when they are going to do what they’re going to do. Your asset prices levitate.”
  • We know who benefits from QE/ZIRP, and how. Won’t know how bad side effects are for ~3 years.
  • “We are all living in a world of speculation, a world of manipulation, it’s not so easy.”
  • Continues to like gold and silver.

Jim’s site is here.

But Who Will Build The Roads?

First New Hampshire Turnpike

Americans’ Distrust in Media Hits All-Time High

It’s about time… From Gallup:

 Americans’ distrust in the media hit a new high this year, with 60% saying they have little or no trust in the mass media to report the news fully, accurately, and fairly. Distrust is up from the past few years, when Americans were already more negative about the media than they had been in years prior to 2004.

Public trust of media poll gallup

The record distrust in the media, based on a survey conducted Sept. 6-9, 2012, also means that negativity toward the media is at an all-time high for a presidential election year. This reflects the continuation of a pattern in which negativity increases every election year compared with the year prior. The current gap between negative and positive views — 20 percentage points — is by far the highest Gallup has recorded since it began regularly asking the question in the 1990s. Trust in the media was much higher, and more positive than negative, in the years prior to 2004 — as high as 72% when Gallup asked this question three times in the 1970s.

Look at the “trust a great deal/fair amount” numbers too. Encouraging.

The stats broken down by party membership are even more interesting.

Democrat's approval of mainstream media

What I find most disturbing is how much the left continues to trust the media, with 58% saying they trust the media a “great deal” or a “fair amount. Compare that to Republicans’ ~28%.

Don’t get me wrong. I hate both parties on 99% of issues. This year I switched to GOP  to vote for Ron Paul in MD. I doubt I’ll ever vote mainstream again, unless there’s a drastic change in the parties.

When I think about it, though, I suppose it really shouldn’t be surprising. Given that every recent so-called “humanitarian” war has been so easily peddled to both neo-libs and neo-cons alike, who are we to stop it?  Isn’t one of these parties supposed to be anti-war?

If you’re still skeptical that the MSM has an agenda, get some popcorn and watch the greatest clip in Daily Show history:

There’s more data and charts at Gallup.com.

Marc Faber Prefers Bonds From Kazakhstan to US, Europe

Faber’s latest, via Bloomberg TV, is a must-watch. Key points:

  • Kazakhstan is economically a “much sounder country than the US or any European country.”
  • Says investors should own gold, but “don’t store it in the US”, as “The Fed will take it away from you one day.”
  • Has bought equities in Portugal, France recently due to valuation.
  • Appreciates Fed as an investor, rebukes as “responsible citizen” as their actions will “destroy the world”.
  • Due to cheap Fed money, wealthy will buy up houses and rent them back to those who lost them during the housing bubble, which was also created by the Fed (towards the end of clip, worth watching).

Some may be skeptical of that second claim, that the Fed could one day confiscate gold bullion held by Americans. If you fall into that category, please read this piece by Tom Woods.

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