JIM GRANT: FED ACTION WILL PROMPT RETURN TO GOLD...

JIM GRANT: FED ACTION WILL PROMPT RETURN TO GOLD STANDARD!

FEBRUARY 26, 2013 BY THE DOC 4 COMMENTS

The Interest Rate Observer’s Jim Grant was on Bloomberg yesterday discussing the recent Fed minutes. When asked by Bloomberg what will be the end result of this Fed’s responsibilities, Grant responded: A gold standard.
When asked when he envisions a gold standard occurring, Grant responded: 2 years ago. It’s important to see our monetary affairs over the sweep of time. The Fed was founded 100 years ago this year. There have been many monetary moments since then. 1944 comes Bretton Woods, but we will have they said a dollar that is backed by gold. Fast forward to the present day and we have gone from the half gold standard, the road show gold standard of Bretton Woods to the full blown PhD standard, in which the Ivy League central bankers the world over are waging an all-out war against the price mechanism, against Adam Smith’s invisible hand.

The gold standard is the answer because the gold standard is the only monetary system that has been shown to work in practice over the course of generations. Everything else has been a tryout, and the tryouts have failed.

Grant’s full MUST WATCH interview on the coming return of the gold standard is below: