With central planners continually shocking investors and creating turmoil in global markets with unprecedented monetary experiments, legendary Jim Grant warned King World News that the Fed poses a great danger not only to the U.S. but also to the world. Grant also warned, “A lot of the concentration of wealth, it seems to me, is a consequence of our monetary regime.” Below is the second in a series of powerful interviews with one of the most highly acclaimed individuals on Wall Street.
Eric King: “Jim, there is a growing feeling that we are seeing increasing corruption in financial markets, with evidence of rigging taking place in LIBOR as well as other illegal activities in key markets coming to light. But I wanted to ask you, if the perception grows that financial markets are a rigged casino, what is the risk there, or is there a risk?”
Grant: “In a meeting a couple of months ago, I happened to be in the audience with one of the Fed governors, Jeremy Stein. And at the end of his talk I said, ‘Governor Stein, can you help us understand the substantive difference, not the legal difference, but the substantive difference between the Fed’s manipulation of the federal funds rate, and the yield curve, and it’s talking up of the stock market — the difference between that on the one hand, and LIBOR rigging in the private sector on the other?’
That was my question and I thought it was a pretty fine question….
Continue reading the Jim Grant interview at KING WORLD NEWS