Sunday, June 14, 2009

Jim Grant on printing money

This is a really good interview (two parts) on the consequences of printing money. Jim Grant is highly respected in the financial world. Some of this is a little jargon heavy, but I think even the layman can figure out his points.

On a side note posting may be thin over the next couple days as I am out of town visiting some friends. However, I do have internet access so I will be trying to check email etc. And finally thank you to the many people who emailed or posted birthday wishes to me. Your kind words and wishes were much appreciated.

Hat tip to Al over at Accrued Interest. Although I don't agree with him, Al has been a consistent and very articulate champion of the deflationist position. I would encourage anyone interested in getting a contrary opinion on the dangers of inflation to check out some of his postings on the subject at his web site linked above.


David Dickens said...

What I don't understand is that there is a fundamental belief on many people's parts that we can, with the right choices fix the system when underlying everything is that many people have houses, cars, electronic equipment and already enjoyed vacations that they can't pay for.

Inflation, deflation, market risks and commodity speculation all need to be monitored by someone because they can and have gone haywire too. But there's alot of people that are never going to see their money for the goods they sold. And alot of people who've been spending money they didn't have are going to get cut off.

The whole economy needs to go into rehab, get off the hallucinogenic easy credit lifestyle and start making stuff again.

Of course we won't see the wealth creation we had in the past until technology fundamentally alters productivity again, but that could be a decade off.

James the Thickheaded said...

Let's see... I followed Jim Grant for a decade or possibly two. By his own admission, a PermaBear. By his own admission and with a laugh, a guy who makes a living writing alarmist stuff about the Fed. Not a bad stock picker for a bear (he's done pretty well). Jim digs ups some great stats, and he's well read. Thanks for the link... will see if he's anything new to add. More are slowly beginning to look at this like economists...but the noise of the powerful is so far overwhelming the message of the brave but honest.

Listen to the Levy folks at the Minsky conference. The other folks will tell you a lot more. Best $100 you could spend in your life... but the mp3's are online.

James the Thickheaded said...

Let me add that here's a link to Minsky folks:

Listen especially to William Kurt Black's strong medicine. And the rest of the folks... even Alan Blinder will suprise you. I haven't heard all of this year's crew... but I know these guys... and they've been right on the money for a decade and very unbiased. Okay.. they're Keynesians... but that's what's worked since Bush's tax cut and even Reagan's.