Eric King:  “When you look back at history, how dangerous are these policies?  How risky is this?”

Grant:  “Bernanke himself has said, ‘Because we are learning by doing.’  Because we are learning by doing we really can’t use history as a guide.  But we can know from history that experiments in radical creation of unconvertible units of currency, of script, have invariably had a bad outcome.

The more birthday candles I blow out, the less dogmatic I become about these things....

Continue reading the Jim Grant interview below...


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“We live in a probabilistic world and we can’t know for certain, but we can know the odds.  And I think the odds against a painless, peaceful and placid exit from all of this dollar, yen, euro, and pound sterling creation, the odds against returning to something like normalcy are very slight indeed.  Therefore one ought to think about assets that will hold their value against money.”

Eric King:  “Jim, then what about the gold market?”

Grant:  “It stinks (laughter ensues).  But having said that, let me add that I am very bullish on gold.  I am bullish on gold because it stands to be an island of refuge, if, as, or when our central bankers really go off the deep end.  Now, no one has been alive to see policies now in place because they never have been in place.

Until 40 years ago the idea of a world universally on paper would have been seen as a fantasy, but now it is so much ingrained that people can’t believe there ever was a time when there was not universal paper money.  But we have seen heretofore unimagined feats of money printing and interest rate suppression by not only our central bank, but almost all of the major ones.  And people have come to be quite complacent about these things.

They are complacent about what has come to pass, and I think they are equally complacent about the prospects for the central banks somehow getting out of what they have gotten us into.  I am at the opposite end of that spectrum of evident complacency.

I believe there is a material chance that all of this (central planning) goes wrong in ways we can’t now see.  And by wrong I mean in the broadest and least specific sense, whether that wrong takes the shape of a new banking crisis, whether it takes the shape of a conventional scene at the supermarket checkout counter rather than the New York Stock Exchange, I don’t know.

I have a feeling that inflation will finally be the result of all of this.  But whether the outcome is kind of a derangement of credit, or whether the outcome is a Jimmy Carter era type of inflation, gold will be a nice thing to have around.  It’s an investment in monetary disorder.  And what we have now certainly are the makings of a very, very important chapter in the history of monetary disorder.”

IMPORTANT - This was Part I of a series of written interviews which has been released with Jim Grant on KWN.  Grant discusses gold extensively, the desperate situation that the Fed and Western central planners face, market manipulation and the tremendous dangers which now threaten the financial system.  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, Gerald Celente, William Kaye, Dr. Paul Craig Roberts, Chris Powell, Michael Pento, Eric Sprott, Andrew Maguire, Grant Williams, Bill Fleckenstein, Art Cashin and Egon von Greyerz are available now. Also, other recent KWN interviews include Marc Faber and Felix Zulauf to listen CLICKING HERE.

Eric King

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