on January 27, 2012 by admin in FOREX, Comments (24)
James Grant and James Turk discuss gold, the Fed and the fiscal situation of the USA
James Grant of Grant’s Interest Rate Observer (www.grantspub.com and James Turk of the GoldMoney Foundation discuss the history and mission of the Fed, how mission creep has taken it wildly beyond its initial purpose into the territory of QE, ZIRP and other fiat currency experiments. They talk about who benefit from zero interest rates and how savers are penalized by this easy money policy. They explain that the US have been off the gold standard since 1913, Bretton Woods being only a shadow of the classical gold standard. In the last 40 years low interest rates have encouraged leverage and speculation, which have reached incredible levels. They discuss the fiscal profligacy of the US government. A solution to debt levels could still be found if the political will existed. US strengths and positive momentum could still be harnessed to save the dollar if people’s eyes could be opened. However they conclude that every paper currency in history has eventually gone to zero. James and Jim also talk about ZIRP and the absence of the bond vigilantes after over 30 years of bull market in bonds. How traders no longer care about fundamentals, like balance sheets, but rather focus on very short time horizons and the spreads between funding costs and yields. How this situation is unsustainable. They see gold still as a very under-owned, misunderstood and marginal asset still shunned by institutional investors, with a few notable exceptions which indicate that the tide could be …
pretorious700
January 27, 2012 @ 9:09 am
@ Deadballo supposedly clever, but? ultimately stupid remark. . . wtf does this have to do with the discussion?
SherkanerUnderhill20
January 27, 2012 @ 9:54 am
1913: The Year That Newtonian rationalism was thrown out the window together with Lockean natural rights and Thomist? just war theory. Thank you President Woodrow Wilson!
mikalo777
January 27, 2012 @ 10:44 am
Also because I Strav777 @ to point out another thing about what you said. Yes, the American dollar are backed by oil, Because all of the American Gold are stolen by the Federal Reserve. ? They leg lending to the U.S. government as a private banker own, and Congress HAS Given them all of our Gold and the power to print as American Dollar assets. Muammar Gaddafi is dead, and we bomb the shit out of Libya Gaddafi Because Their Country’s refuse to sell oil to U.S. dollars. Thats the real truth.
mikalo777
January 27, 2012 @ 11:35 am
@ Strav777 You? Also need to understand, Paul HAS went on many Presidential Debates, That we can count everyone have a price for a gallon of oil or dime. We have plenty of oil here in America and Alaska, But the big bankers, lobbyists, and the Feds are keeping the American people from our own resources Drilling to support our own economy. We are at all confused thesis, spending the American people’s wealth, so big corporations and big bankers can get rich.
Dethreid
January 27, 2012 @ 12:27 pm
That’s a bangin bow tie, wears it much better then Carlson. ?
Robgf88
January 27, 2012 @ 12:36 pm
@ Strav777 That is why? Paul and Grant are lawyers for gold. Because they know there is no way to keep the world on the U.S. dollar petrochemical standard. The U.S. Will eventually have to go back on the gold standard to prop up the U.S. dollar. Will not collapse if the U.S. dollar and we’ll have to Rely on a new currency. A world currency maybe? lol
Strav777
January 27, 2012 @ 12:59 pm
Good interview – however what scares me about Grant and Paul is not Admit One key truth. Retain the USD it’s power Because it * is * backed by something. That something is oil. All countries must buy Their oil in U.S. dollars – and? That alone is the reason the U.S. Has Been Able to run huge deficit spending since 1971 – and central banks hold U.S. $ to buy oil to Run Their economies. Also it is the reason for continued U.S. presence in the middle east. Petrodollar system.
Highencast
January 27, 2012 @ 1:16 pm
. . . Bill Nye the Science? Guy?
healthhavencom
January 27, 2012 @ 1:18 pm
Jim Grant =? Great guest James Turk = Amateur Interviewer
deadballo
January 27, 2012 @ 1:52 pm
He’s a sharp fellow,? Should someone tell him but the bow tie was the Christmas packaging, not the packaging Itself.
ford88sw
January 27, 2012 @ 2:07 pm
End The Fed? now
mjs1231
January 27, 2012 @ 2:56 pm
END THE CRIMINAL FEDERAL RESERVE SYSTEM. A TRUE HERO THE END OF THE FEDELECT PEOPLE. THE CHAMPION OF THE Constitution. RON PAUL 2012. OWS. . . . BRING? IT TO THE 1%. . . . . . . . . . .
mjs1231
January 27, 2012 @ 3:47 pm
Paleo Conservative Constitutional Libertarian. HELL YA, CANNOT GET MORE THAN THAT AMERICAN. THANK YOU SIR. LONG LIVE RON PAUL. THE JEWEL OF LIBERTY shinning IN SIGHT. ?
carlsonbridge
January 27, 2012 @ 3:55 pm
It is wonderful Ron? Paul’s Our President!
Tasadaru
January 27, 2012 @ 4:45 pm
Marine Corp? How about some love for the Air Force. ? Axis for a gold standard, I would go Further to say thats the free markets Should They choose the Monies not want to transact at.
ryanisfootdrums
January 27, 2012 @ 5:28 pm
@ Quadcatfly We only went? off the gold standard in 1971, so we’ll go back to some sort Probably or commodity backed fiat currency or have competing currencies.
AntiFed1791
January 27, 2012 @ 5:35 pm
Bernanke is an economic hitman. It is clear thats the global banking interests desire a complete collapse so They can sacrifice or Their solution? SDR and a global, cashless control grid. “We are on the comparative of a global transformation. All we need is the right major crisis and the nations willing accept the New World Order.” – David Rockefeller
livfreeordi3
January 27, 2012 @ 6:06 pm
“Like” if Ron Paul’s Fed Chairman pic brought you here. (Primarily because i was surprised? He’d just had one in mind…)
BlueSkies360
January 27, 2012 @ 6:44 pm
I wish RP picked PS, but this guy Seems OK too?
Rufrignkidnme
January 27, 2012 @ 6:49 pm
This would be Paul’s choice for Fed Reserve Chairmen since the Fed can not be ended overnight it’s better to have someone there who is aware of it’s Dangers and can limit it’s harm. ?
GarrettYngbld
January 27, 2012 @ 7:43 pm
@ Waldnerinc Good? point but what is our other option?
waldnerinc
January 27, 2012 @ 7:46 pm
24:06? he started talking about ron paul
waldnerinc
January 27, 2012 @ 8:29 pm
Question of the Day: Prices have Risen 683%? since 1964 and $ 100 today buys only 4% of the Amount of goods or services thats it would have in 1913. With this being said, why is it worth saving money for our retirement as our parents insisted?
utubesqueeze
January 27, 2012 @ 9:21 pm
Strange News @ gold money for someone so well read as Clearly Both? Neither of you That Mentioned the Bancor bartered commodity basket (Expressed in weight of gold), That Was Proposed as a supranational currency by Keynes just before Bretton Woods conference. The Chinese central bank have made a lot of noises about Both this and Special Drawing Rights All which ALREADY EXIST and You also did not mention All which as reserve currency alternative.