Jim Grant – Gold & The Fed’s Ungraceful Attempt To Exit QE

24-May (KingWorldNews) — Eric King: “The idea that the Fed can gracefully exit QE, and they’ve been selling this for quite some time, Jim, I wanted to get your thoughts on that?”

Grant: “Well, anything is possible. As I indicated a moment ago, one becomes more agnostic or at least humbler in the face of the future the more birthday candles one blows out.

But it is a matter of record that the Fed has shown not much judgment with respect to future events….

“It (the Fed) famously failed to see what some of us regard as the most obvious bubble of our lifetimes, namely the terrific distortions in residential house prices, and in residential mortgages.

So, to say the Fed is going to gracefully and without cost exit its policy of unprecedented money creation and experimentation is to give the Fed many, many benefits of the doubt. And I think it’s prudent to prepare for an ungraceful, noisy, and distorting exit.

For that reason I continue, for example, to be bullish on gold and gold stocks, although one can hardly bear to say those words most days.


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