Eric King:  “Jim, the ‘sins of the Fed’ that you referred to in one of your interviews, they are old sins.  There’s nothing new under the sun, right?  Except maybe derivatives.  But with regards to the sins of the Fed, what price tag will we have to pay at some point?  You mentioned a ‘comeuppance’ earlier.” 

Grant:  “The comeuppance has already been substantial.  I mean how do you quantify the cost of lost opportunity for six college graduation seasons, more or less, in which young people have been thwarted in what they want to do for a living?  And many of them have been kind of tossed into the casual work scrap heap.  What’s the cost of that?

Now the Fed didn’t exactly cause that, but to me it has exacerbated our problems rather than solving them....

Continue reading the Jim Grant interview below...


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“So I think the comeuppance has been substantial already.  It has been costly.  And the longer this kind of sleepwalk continues, the greater the cost will be.

And then, of course, if there is some noisy climax in our monetary troubles, some flight from the currency, some massive vote of no confidence in central banking as a whole, that climax will certainly compound cost because it will involve the interruption of productive activity in the real economy.”

Eric King:  “Throughout history we’ve seen gold flow where the real economies are doing well, and that’s certainly not the West right now.  So there is this worry that the gold is flowing from West to East.  When we talk about gold being in a bear market, and the mainstream media will parade people out with anti-gold propaganda, but in the face of that we’ve seen extraordinary demand, Jim, from China, Vietnam, Thailand, from India, almost record setting levels.  It certainly doesn’t look like a bear market when you look at the amount of purchases coming out of the US Mint, the Perth Mint, and the booming sales throughout Europe and Asia.”

Grant:  “The price of gold has been going up for what, a dozen years now with pullbacks?  Which is to say the value of the currencies against which gold is measured has been depreciating for that long.  And I know that the Wall Street Journal, defining as it does a bear market in a certain way, now proclaims that gold is in a bear market.  It seems to me that that remains to be seen. 

To me, the financial belief in which I have the greatest confidence is that our current monetary system, which we at Grants call the ‘PhD Standard,’ that this system of guesswork, of improvisation, of seat-of-the-pants central planning, this system is not for the ages.

It will not last.  Common sense will get the upper hand and a new monetary system will come into being.  And that new monetary system will very likely use gold and gold will be an important part of that system.  So, believing that devoutly, as I do, I am inclined to believe that the bull market in gold is long-term and that it is way too soon to pronounce it over.”

This was part II of a series of written interviews which will be released with Jim Grant today on KWN.  Grant discusses gold extensively, the end of the current monetary system, Fed and central bank policy, distortion, and the tremendous challenges the West faces going forward.  The remarkable KWN audio interview with Jim Grant is available now and you can listen to it by CLICKING HERE.

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The audio interviews with Jim Grant, Michael Pento, Egon von Greyerz, Andrew Maguire, Art Cashin, William Kaye, James Turk, John Hathaway, Dr. Paul Craig Roberts, and MEP Nigel Farage are available now.  Also, be sure to hear the other recent KWN interviews which include Eric Sprott, Marc Faber and Felix Zulauf by CLICKING HERE.

Eric King

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