Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

The Fed Is in the Business of Making Things Worse (Video)

  by    0   0

Following the Federal Reserve’s monthly meeting, the financial media has been making the rounds to get everyone’s opinion of the economy. Jim Grant agrees with Peter Schiff: it looks like radical monetary policy “is pretty much here to stay.” As usual, Grant shares his contrarian views with CNBC in his dry, witty, and disarmingly honest style.

Highlights from Grant’s interview:

“[The Fed’s statement] seems awfully familiar, doesn’t it? You mentioned when, if every – I think the ‘if ever’ is a very important part of this question – [the Fed will raise rates]. The Fed is in the position of a central planning body that must take all things into consideration. It must levitate prices such us to give us 2% inflation. It must create prosperity through the improbable agency of money printing. It must assure financial stability. These are hard things to do, otherwise they would have been done many centuries earlier. I think what the Fed never gets around to saying is that finance is symmetrical. There is an asset line and a liability. There is supply and demand. They want to magnify or enlarge aggregate demand. But inadvertently, through these zero-percent rates and through more and more quantitative easing, they also enlarge aggregate supply. Witness the bear market in energy…

“The Fed is in the business of making things worse as it seeks to make things better… My view is that radical monetary policy is pretty much here to stay. For example, zero-percent rates have allegedly been part of the solution for our woes in Europe and here. Except zero-percent rates mean that you must have a great many more assets in order to generate income. This is starving, for example, the German life insurance companies…

“We must have failure in capitalism in order to allow new things to come and develop. The minimization of failure is paradoxically a problem with the ruling monetary regime…”

Screen Shot 2015-04-30 at 11.56.55 AM

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

New Peter Schiff Interview: We’re Paying the Price for Deficits

Last week, Peter was interviewed on Speak Up with Anthony Scaramucci. In their conversation, they covered a wide range of important topics, including inflation, the fate of the dollar, and the trade-offs between gold and cryptocurrency. 

READ MORE →

Dollar Down 20% Since 2020, Biden Blames Greed

Assuming CPI measurements are not understatements, the dollar’s value has plummeted by a staggering one-fifth since 2020, yet, rather than acknowledging its role in fueling this economic turmoil, the Biden administration deflects, casting capitalism and corporate greed as the villains. The latest February CPI data show more signs of the upcoming inflation bloodbath.

READ MORE →

The Myth of Fed Neutrality

Powell follows the president's wishesThe Federal Reserve is often viewed as a neutral guardian of the economy, tasked with safeguarding employment and ensuring stable prices. However, the Fed is run by individuals who, like anyone else, are swayed by certain motivations. Do the people behind the Fed truly have the incentive to remain impartial? Our guest commentator demystifies the […]

READ MORE →

Peter Schiff: Gold is the Canary in the Economic Coal Mine

This weekend, Todd Sachs interviewed Peter on the state of the economy. They discuss the parallels between now and the 2007-2008 housing crisis, the role of economic sentiment in voters’ opinions, and why foreign central banks are losing faith in the dollar.

READ MORE →

Massive Deficit Spending Tows US Economy Forward

A truck titled "US gdp" tows along another car, the US economyRampant government spending continues to mask fundamental weaknesses in the US economy. Recently, national debt grew much faster than the economy for the third quarter in a row, just one of many warning signs concerning legendary investors. Our guest commentator explains just how much the government is spending to make the economy seem strong, even […]

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now