Jim Grant on CNBC

Here are some video clips of an interview with Jim Grant on CNBC. Jim Grant is one of my favorite people in the universe. His website is GrantsPub.com. The hosts ask him questions based upon false premises. Grant makes an excellent point that a 0% interest rate isn't the right rate for any economy. He also points out that the theory of money printing in the U.S. is no different than in Zimbabwe. The only difference are the excuses: inflate more to compensate for the effects of inflation (rising prices), and inflate more to prevent falling prices. Both arguments rest upon the fallacy that there is a dollar shortage. Jim points out how M2 is increasing at around 9% per year. Indeed, research shows a strong correlation between M2 growth and price inflation. I came to that conclusion several years ago on the basis that there is no objective difference between demand and time deposits. I also came to a speculative conclusion which I am not certain of: narrow M3 is somewhere inside of broad M2.
Part 1


Part 2