Bloomberg’s Tom Keene interviews Jim Grant. Always worth a listen, especially with the gold standard back into the news. He also takes a swipe at the Swiss National Banks. Good stuff.
We need a central bank that has the humility not to do what it cannot do. And the Fed cannot do what others have failed to do. Namely, to plan an economy from a central desk in a capitol city. - Jim Grant
The Global Macro Monitor wants to go on record, Right here, Right now, that we do not support a return to the gold standard, but are in favor of a rules based monetary policy. One of the rules would be never suppressing nominal interest rates below inflation for an “extended period” of time. We believe this is one of the main causes of the financial crisis and a major reason for the U.S.’ zombie-like economy recovery.
Click here for full interview