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).
- 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.