Hidden Forces Jim Grant on What Inflation Means for Asset Values, Crypto, and Meme Stocks
Nov 29, 2021
In this discussion, Jim Grant, founder of Grant's Interest Rate Observer and a veteran in financial media, delves into the complicated nature of inflation and its lasting effects on asset values. He shares insights on the Federal Reserve's policies and their role in dollar debasement, challenging the notion that current inflation is merely a temporary phenomenon. Grant reflects on historical credit cycles, revealing how investor behavior and market dynamics are shifting amidst rising prices. His unique perspective sheds light on the future of stocks, bonds, and cryptocurrencies.
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Jim Grant's Upbringing
- Jim Grant's father was a Juilliard-trained timpanist, while his mother was also artistic.
- He played French horn seriously, aspiring to a musical career, but jokes he wasn't a skilled baseball player.
Greenspan's Shift on Gold Standard
- Alan Greenspan, despite advocating for the gold standard early in his career, later became a key figure in the move away from it.
- Grant highlights Greenspan's admission of not practicing during his jazz career, contrasting it with his own dedicated practice.
US Gold Standard Strategies and Their Failure
- The US implemented various strategies, like the gold pool and Operation Twist, to maintain the gold standard.
- These ultimately failed, leading Nixon to sever the dollar's gold convertibility in 1971, a pivotal moment in monetary history.