Grant’s Observations: Money, Credit, and Financial Repression

Published on
October 14th, 2019
Duration
29 minutes

Grant’s Observations: Money, Credit, and Financial Repression

The Expert View ·
Featuring Jim Grant

Published on: October 14th, 2019 • Duration: 29 minutes

Jim Grant, the legendary editor of Grant’s Interest Rate Observer, has something to say to Mario Draghi, Ben Bernanke, SoftBank, WeWork, and other financial luminaries. Grant joins Real Vision to discuss the “most consequential price in capitalism,” and the role of money and credit in an economy rife with extreme central bank intervention. Grant argues that the recent interest rate distortions and financial engineering pose unprecedented risks to the capital system and that the mounting stockpiles of debt spell further trouble. Filmed on October 3, 2019 in New York.

Comments

Transcript

  • TS
    Tom S.
    25 October 2019 @ 02:35
    That was very entertaining. It is always good to listen to him. Agree or disagree, he is fun to have on the box.
  • FS
    Fagundes S.
    18 October 2019 @ 15:00
    Too bad he needs to learn more about Bitcoin.
    • GG
      Geoff G.
      20 October 2019 @ 05:06
      The “world” needs to learn more about bitcoin... for instance, how does it perform during a recession? How does it perform during inflation? How does it perform during a financial crisis? The only thing I know for sure is how it performs when almost everything is going up.
  • CA
    Cal A.
    18 October 2019 @ 09:53
    I like that the transition effect harmonizes with the bow tie.
  • KA
    Kevin A.
    18 October 2019 @ 02:42
    I’ve been following Mr. Grant since I was a young credit analyst in the mid-1990s. I enjoy reading his work and listening to him. His work is entertaining. His ideas are mostly non-actionable. From an opportunity cost perspective, following his advice would have been a very costly mistake over the past 20-30 years.
    • GG
      Geoff G.
      20 October 2019 @ 04:59
      Wasn’t he one of the few who predicted sub prime mortgage crisis.
  • AZ
    Angelo Z.
    17 October 2019 @ 23:14
    I love how he drops the mic on Bitcoin. LOL.
  • JB
    John B.
    17 October 2019 @ 21:09
    Just think, if NIRP's continue, the zero interest mortgage becomes a possible (if fanciful) idea. In which case, I'll take an interest only mortgage, and I can live in any house I want. Furthermore, the homeless problem is now solved! Central banks to the rescue!
  • RK
    Robert K.
    17 October 2019 @ 11:56
    Beautiful.
  • JH
    Jesse H.
    16 October 2019 @ 15:18
    Fantastic and highly eloquent, as ever. Thank you, Jim! Favourite line was the last one - whatever you believe, this has got to make for a good laugh.
  • DR
    David R.
    16 October 2019 @ 12:37
    The dumb cental banks like UK and US sold all their gold for $200 or even less. The smart central banks loaded up on gold. None of them own crypto. It can (will?) be outlawed with a stroke of a pen and made worthless, probably in favour of state-issued crypto. Already in the works.
  • TS
    Thomas S.
    16 October 2019 @ 04:04
    I have many wishes. But one wish is for Ben Bernanke to live a long enough life to see what a fool he has been
    • AZ
      Angelo Z.
      17 October 2019 @ 23:17
      Ben is a criminal working for a criminal syndicate, the syndicate could care less how we view them or how the chaos they create affects us.
  • RH
    Robert H.
    16 October 2019 @ 01:12
    The 73 year old likes the 10 billion year old asset over the 10 year old asset. What a surprise. Jim Grant was old when the internet gained popularity, how could he begin to understand a non-sovereign, scarce, digital asset.
  • DS
    Dan S.
    16 October 2019 @ 00:25
    Watched Mr. Grant as a kid and he always spoke my language. Let's organize a protest walk against the FED in NYC and DC.
  • AL
    Alex L.
    15 October 2019 @ 16:01
    Anyone with access to electricity and a phone/computer can verify a BTC transaction for authenticity. Cheap and fast compared to trying to authenticate a piece of gold.
    • RK
      Robert K.
      17 October 2019 @ 11:57
      For authenticating gold the only thing you need is your teeth - a millennia old technique.
  • ET
    Eugenia T.
    15 October 2019 @ 12:38
    This was... nothing insightful here that left me with a deeper understanding than I had before. The tired, general bla-bla you hear from a college prof. Just signed up for membership to come to this as the first current video. After the level of analysis in a lot of the free content, am really disappointed.
  • RS
    Ruben S.
    15 October 2019 @ 10:59
    re banking system, low rates are not the issue per say, flat yield curve is! one could imagine -5% front end vs 0% 10y would be very profitable environment for banks. and re broader economy it would just reflct preference for future rather than immediate spending. is that so crazy when demographics are declining? and regarding Grants comment that deflation already happened in history, it might be right, but what never happened is a natural (non war related) global population decline induced deflation!
  • KJ
    Keith J.
    15 October 2019 @ 02:54
    I would have liked to hear Jim’s views on the point that Powell tried to raise rates last year - should it have been done differently, did he stop too soon, should he have kept going etc. He correctly identified the political element. I wonder what he would do himself if he were in charge? Would a huge recession be worth it to get rates higher, for example? Is that inevitable or could it be avoided?
  • MS
    Michael S.
    15 October 2019 @ 02:40
    I know what he's going to say, because I consume every bit of Jim Grant that I can, but he says it so well that I could listen to him talk for hours. Wish he were here at least monthly.
  • AL
    Andrew L.
    15 October 2019 @ 02:08
    Interviewer: "What's your view of the current rate environment?" Jim Grant: "What's striking is there is no predecessor in millenia..." Debt is money, until its not.
  • EF
    Eric F.
    15 October 2019 @ 02:02
    Great video. Always glad to listen to Jim. Love his enthusiasm and he looks & sounds like the most youthful 73 year old I’ve ever seen. Oh yeah, and talks a load of sense too.
  • DM
    Douglas M.
    15 October 2019 @ 01:59
    No one can deliver withering criticism of our Moneyed Elite better than Jim Grant.
  • db
    don b.
    15 October 2019 @ 01:11
    Jim won't just call out the collusion that is rampant nor will any insider. The level of crime at the highest levels of government & finance is staggering. Why does Morgan Stanley never ever lose money in a trading day? Well let me ask you this question...Do you have a brain? Each day is scripted out at the NY Fed while we wait for value investing to start working they have other plans. Waiting for Godot.
  • JJ
    Jesse J.
    15 October 2019 @ 00:53
    My most troubling thought was along the "Savers don't win in this world". He's right, and it hurts in both my wallet and my mindset. I've spent a lot of time and effort sacrificing and doing without to raise capital for investments. I'm seeing my equities stretch themselves thin trying to expand. I'm seeing people either getting very wealthy or head over heals in debt. Houses where I am at are only selling because rents are even higher. I've come to realize that in the beginning you want to get more money, but after a while you want to just hang on to what you have worked for. Anyways, I appreciate Grant's views; be well.
  • CW
    Christian W.
    14 October 2019 @ 23:34
    I am digital native and - of course - a Bitcoin guy. Gold was great before I discovered Bitcoin, but the downsides are just too many for my level of technical understanding: I can verify my Bitcoins myself with a simple full node on my laptop. How will I ever verify that the gold I bought is real? How would I carry gold with if the political situation becomes dramatic as in Venezuela? I can try to, but chances are high my gold would get confiscated easily. With Bitcoin I can just remember the seed, travel to the other end of the globe and take all of my stored wealth with me. And then the S2F aspect: gold is still king here, but Bitcoin's S2F rate is trending towards infinity within the next few years. So I will definitely stick to Bitcoin, and cash out of the few remaining ounces of gold that are still stuck in my bank vault.
    • JJ
      Jesse J.
      15 October 2019 @ 00:42
      Grant's got a point. If you need an electrical socket to get at your money and your in a place with no electric you're gonna have a difficult time. Gold has some advantages too; don't forget. You can wear it, you can shape it, trade it, bury it, use it as teeth if you need to, and importantly you don't have to explain it to someone who doesn't have a computer. With gold they know what it is, what it's value is, and what it represents. I'm by far not against BTC or crypto, I'm only pointing out that having a bit of gold in a pinch might not be a terrible insurance policy should the lights go out.
    • NB
      Nicholas B.
      15 October 2019 @ 13:57
      I like Gold, but I don't think his point is that good. Wearing gold: Sure, but it is not very safe, robbery. Shape it: The majority of people can't actually do this. Trade it: Sure, but physical gold requires a meeting, contractual agreement, verifying purchaser. The meet up is burdensome and time/energy/cust consuming. Bury it: The same can be done with a hardware wallet for BTC, but I would recommend this with either as it is unsafe. Lastly, every generation coming up isn't going to need an explanation for Bitcoin as they are born with technology. Looking forward, you will need to explain Gold more than you will Bitcoin. To not understand this is to not understand future generations and the trends already taking place. Also, if it is someone who doesn't have a computer today, or in the future, such as a third world or poverty-stricken country, they aren't going to be able to actually acquire, store, use, or understand Gold any more than they would Bitcoin. They'll have a better chance with a $30 smartphone accepting Bitcoin from anywhere in the world.
    • JJ
      Jesse J.
      15 October 2019 @ 23:30
      @ Nicholas B. You make a very valid point. Forgetting about future generations is easy to do. Ty for discussion thoughts.
    • BM
      Bryan M.
      17 October 2019 @ 01:57
      I like both and see the value in both and have a hard time deciding what ratio to hold. I am leaning toward the option that over time Bitcoin will become the geopolitical uncertainty hedge and Gold will be the “we are going back to the dark ages” hedge. As long as energy and tech remain bitcoin is the stronger of the two.
  • AC
    Alessio C.
    14 October 2019 @ 22:25
    @realvision Why not have a short series with Jim Grant (and Grant Williams as a wingman) going around London and New York and telling in 3 episodes the true story of central banking?
  • GG
    Gary G.
    14 October 2019 @ 22:11
    Quantum computing is BTC killer!! It is coming!!
    • JS
      John S.
      14 October 2019 @ 22:33
      And the cryptography geniuses working on BTC are totally unaware of quantum computing?
    • RP
      Raoul P. | Founder
      14 October 2019 @ 23:56
      This is a red herring... there are huge resources working on this already.
    • GG
      Gary G.
      15 October 2019 @ 05:34
      Time will tell!! I can care less about price of bitcoin or gold. I own physical gold and will continue to trade crypto currencies.
    • NB
      Nicholas B.
      15 October 2019 @ 13:42
      There are already third-generation blockchains working on quantum-resistant security features. IHOK's Cardano is doing this now with their PoS blockchain. These security upgrades will be added on second or third layer solutions for Bitcoin in due time.
    • NB
      Nicholas B.
      17 October 2019 @ 19:18
      https://eprint.iacr.org/2019/1150 - Quantum Resistnance
  • dw
    douglas w.
    14 October 2019 @ 21:15
    Gold and digital currencies will rise and fall and will continue to be successful in the future. I think Grant may infer with the electric socket comment; if you own physical gold, it is real hard money for hundreds of years, with no third party risk. Where trillions of global debt has gone negative, its an honest zero yield.
  • RK
    Roger K.
    14 October 2019 @ 20:15
    Simply superb! Thank you.
  • UJ
    Ulf J.
    14 October 2019 @ 20:00
    You don't need an electrical socket to transfer Bitcoin you can send it by letter or something else.
    • RP
      Raoul P. | Founder
      14 October 2019 @ 23:57
      This is not well understood...
    • DV
      Dhruvil V.
      15 October 2019 @ 04:08
      Also, Blockstream has already placed satellites, so you could access your bitcoins using satellite phones
  • MS
    Melvin S.
    14 October 2019 @ 19:40
    Regarding the last comment about gold vs bitcoin where Mr. Grant prefers gold over bitcoin because of the need for electricity. How would one transact a serious amount of gold without a car or other vehicle that requires electricity/other similar resources? Will Mr. Grant bring by a few kilograms of gold by bike when he’s buying a house?
    • CB
      C B.
      14 October 2019 @ 20:43
      How many electrons does bitcoin have revolving around its nucleus?
  • CB
    C B.
    14 October 2019 @ 19:30
    My favorite part was where Jim had no one to interrupt! I kid I kid! Thank you Jim for the consistent doses of sanity that you deliver.
  • TH
    Truman H.
    14 October 2019 @ 17:32
    "So, I think that the central bankers are a pretty incurious lot" deserves an award for masterful understatement.
  • SU
    Shakeel U.
    14 October 2019 @ 17:29
    Great and brilliant 😀
  • DL
    Dan L.
    14 October 2019 @ 17:08
    I absolutely love Jim's last comment, that a store of value should not require an electrical socket to make it work. ...and I'm a Bitcoin guy. Great talk Jim.
    • NB
      Nicholas B.
      14 October 2019 @ 17:57
      There are many more electrical sockets to choose from around the world than third parties to hold my store of value. I see trusted third parties, emphasis on trusted, disappearing at a rate faster than the creation of electrical sockets to choose from in which to maintain complete sovereignty over storing your own value from any location at any time accessible at any minute.
    • TM
      The-First-James M.
      14 October 2019 @ 19:58
      I'm both a Gold and Bitcoin Guy, and would like to point out to Mr Grant that I can hold the recovery seed to my Bitcoin in my head, until I can get to a power socket. If a power socket is never going to be an option, I'm presently very under-allocated in the lead and brass department (to paraphrase Julian Brigden)...
  • JR
    Jay R.
    14 October 2019 @ 15:01
    I love Jim Grant's bit of wit throughout the interview. He is by far one of the most knowledgeable expert RV has on, please bring him back at least semi-annually for his current views.
  • JK
    Jay K.
    14 October 2019 @ 14:45
    "Trump himself is an exponent of that, but he doesn't know it. He doesn't know many things. But he doesn't seem to realize that he himself is talking MMT. He says, let's have a 0% funds rate and let us spend money on infrastructure. That is the MMT program. So we got it already. It feels great, doesn't it?" Uh... lets see how this shakes out. Feels like an experiment.
  • TS
    Taranvir S.
    14 October 2019 @ 13:55
    It's indeed a peculiar world where the world elites themselves don't know what to do next at a time when interest rates are zero, disruptive technologies are on their way of changing the society as a whole and geopolitical tensions may just about create some major upheaval in the time to come
  • JV
    Jerry V.
    14 October 2019 @ 13:51
    I suggest an update to the overall site format - In the TOPICS section add GOLD vs BITCOIN and in the title format of every video produced for that series include GvB or Gold vs Bitcoin. Thank you for the content
  • SS
    Stan S.
    14 October 2019 @ 12:47
    "You wouldn't want your least favorite mother in law to own this security."
  • AP
    Ash P.
    14 October 2019 @ 12:37
    Like a favourite book. You've read it many times and still it still yields an insight - or the same one from a different angle...or maybe even just a reminder of a basic truth you momentarily forgot. I could listen to Jim Grant all day (disclaimer: I already pay to read him).
  • GC
    George C.
    14 October 2019 @ 10:32
    Enjoy listening to Grant, but nothing new here.
  • SS
    Shanthi S.
    14 October 2019 @ 09:10
    Aaah!!! So good!!! Please have him back twelve times a year!!
  • MF
    Michael F.
    14 October 2019 @ 07:04
    Please forward this video to the ECB
  • MZ
    Martin Z.
    14 October 2019 @ 06:42
    "Without accurate rates, people do business in the dark, or in a hall of mirrors." Priceless - in both senses of the word.
  • FV
    Fredrik V.
    14 October 2019 @ 06:18
    We need Jim back on a serie... combination of humor, intellect and story telling not to be found anywhere else.
    • PU
      Peter U.
      14 October 2019 @ 09:37
      Nobody does it better . . . Jim Grant!
    • tk
      timothy k.
      14 October 2019 @ 10:51
      Nothing new but always good to know that I am not alone in my frustration as a struggling saver.
    • TN
      Tyler N. | Real Vision
      14 October 2019 @ 19:56
      Stay Tuned ...Jim Grant series coming in November/December!
    • JR
      Josiah R.
      15 October 2019 @ 11:47
      I love Jim Grant. So much wisdom and wit.