Jim Grant: Honey, I Shrunk the Yield Curve!!
Sign in to YouTube
Sign in to YouTube
Sign in to YouTube
Published on Dec 14, 2012
check us out on Facebook
Follow us @
Welcome to Capital Account. Whether it's going over the fiscal cliff or Spanish house prices suffering a severe fall, there seems to be a universal financial fear of gravity. Even though we are certainly scared of falling, we don't seem to have much fear of altitude. But should we? We talk to Jim Grant, founder and publisher of Grant's Interest Rate Observer, about his bi-monthly outlook for some answers.
On this show, we have openly wondered if the extraordinarily low interest rates charged to the US Treasury have been the result of the Fed's voracious appetite for fixed income securities over the past four years. There is no question that yields have been eviscerated by Fed policy, but is it the result of Fed policy past or present? Is it the current presence of the Fed in the bond market that is keeping rates low, or was it the Fed's accommodative monetary policy during the boom years and the subsequent urge by the private sector to relieve itself of overpriced assets in the bust that has kept yields from rising? In either case, we find fault with the Federal Reserve. It seems the Fed can now claim this: "Honey I Shrunk the Yield Curve!" Only in this scenario, policy wonks in control of the "shrink ray" seem hardly concerned about our new microscopic interest rates. If anything, the lower they go, the more the Fed may print, forcing a new class of indentured investor out to scavenge for more yield on the front lawn. We talk to Jim Grant, founder and editor of "Grant's Interest Rate Observer" and author of "Mr. Speaker!", about the recent announcements from the Federal Reserve.
Plus, on Sunday voters in Japan will head to the polls to cast their ballots in parliamentary elections. If recent polls are any indication, voters look set to elect Shinzo Abe, the leader of Japan's main opposition party, as the next prime minister. In the face of a technical recession and weak exports, he demanded the Bank of Japan begin unlimited QE. Japan has been deflating for the past 25 years, so why should we pay attention to this call from a politician today? We talk to Jim Grant about the possibility of further easing in Japan.
Plus, we had a tremendous response from you this week. Lauren responds to your comments in "Viewer Feedback."
- 27:57 Jim Rickards: the Fed is Racing to Create Inflation Before the US Economy Implodes!by CapitalAccountFeatured 58,639
- 28:06 Marc Faber on a Global Crash, the U.S. Treasury Bubble and China's Slowdownby CapitalAccount 67,391 views
- 28:05 Eric Sprott: Silver to Outshine Gold as the Investment of this Decade!by CapitalAccount 46,212 views
- 28:05 Cate Long: Muniland, the Happiest Place on Earth?by CapitalAccount 7,217 views
- 44:41 ALEX JONES & Max Keiser 2013, Year of The GREAT CRASH! [INFOWARS Nightly News]by CapitalWatch 19,578 views
- 4:19 Fed Will Keep Printing Until The Dollar Collapses~ Jim Rickardsby 102196543 21,696 views
- 10:39 James Rickards, James Grant, Gold!by sgwarrenb 6,485 views
- 27:50 Jim Grant offers his Observations on QE to Infinity and the Great Levitation!by CapitalAccount 20,018 views
- 10:35 Jim Grant: Gold A Hedge Against Monetary Disorder, Prices May Be Falling On Momentumby selfownership1 1,104 views
- 28:02 James Turk gives his timeline on the Dollar's Collapse and Gold's role as the messenger!by CapitalAccount 65,458 views
- 6:36 Jim Grant: Fed Doubling Down on QE, Very Bullish For Goldby selfownership1 1,896 views
- 5:19 Peter Schiff: "U.S. Bond Market Is a Ponzi Scheme"by TheLeakSource 8,824 views
- 4:38 Jim Rickards: Fiscal Cliff Is a `Train Wreck You See Coming'by selfownership1 2,801 views
- 7:22 Nassim Taleb - Black Swan: How to Profit From Chaos (Euro, Egypt, Fiscal Cliff, & More)by selfownership1 5,328 views
- 28:01 Energy Expert Byron King on Peak Oil, Natural Gas and Rare Earths!by CapitalAccount 23,150 views
- 5:41 Peter Schiff: We Will Never Pay It Back, We Can't Pay It Back, That's Why We Raise The Debt Ceiling!by Eduardo89rp 24,230 views
- 1:03:41 "What Does the Fed Do?" with James Grant -- Ron Paul Fed Lecture Series, Pt 2/3by CongressmanRonPaul 34,804 views
- 7:55 James Grant: We Are Now All Labrats Of Bernanke And The Fourth Branch Of Governmentby selfownership1 5,318 views
- 28:02 The GOLD standard, the DOLLAR standard & a New GLOBAL CURRENCY Order [CAPITAL ACCOUNT]by CapitalWatch 622 views
- 25:46 Keiser Report: Colossal Collapse Coming! (E371)by RussiaToday 135,866 views
- Loading more suggestions...