CNBC Has An Intelligent Guest On! in [Market-Ticker]

Posted 2012-03-07 17:01
by Karl Denninger
in Other Voices

CNBC Has An Intelligent Guest On!

I'm speechless.

This afternoon I looked over at my muted TV and saw Jim Grant's mug on CNBC, so I turned on the audio and heard....

http://video.cnbc.com/gallery/?video=3000077329

Note that Jim talks about the Depression of 1920/21 about 6 minutes in -- a period I identify specifically in Leverage (look to the right to order a copy if you don't have one) because that particular Depression was an extremely sharp deflationary depression -- Bernanke's alleged "nightmare scenario."

So what did The Fed and government do?

The government balanced the budget and The Fed raised rates!

What happened?

The excesses in the economy cleared, the Depression ended and within 12 months a full recovery had occurred including a return to full employment!

There are a few people who get it, and Jim Grant is one of them.

Discussion below (registration required to post)

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User Info	CNBC Has An Intelligent Guest On! in forum [Market-Ticker]
Imustbenutz Posts: 283 Incept: 2010-11-04 Absurdistan, USSA	Although it is not a surprise, it still is a source of irritation that intelligent economists are not allowed to influence policy. Jim's commentary further illustrates that the Bilderberg Banksters are carrying out their own agenda according to their own game plan. (Their own plan is to OWN everyone and everything on the planet.) 2012-03-07 17:30:01 Permalink
Bertdilbert Posts: 2655 Incept: 2008-12-22 CA	Jim is one of the few that understands or admits to mispriced risk. This forces the Fed to have QE forever because if the market believed the Fed was going to pull out, the market would instantly crash. The mispriced risk ensures that all pension funds will be broke beyond what is currently apparent. ---------- Dear Euroland: Relax, Germany has a plan for your money! Political Capital Defined: We are out of money but will tax our citizens for whatever it takes to "SAVE" the Euro. 2012-03-07 17:42:50 Permalink
Pika-steph Posts: 54702 Incept: 2007-09-11 Live Free Or Die; US Army Est. 1775	He's always got those little red bow ties on.... Jim's da shizzle, even if he does put too much faith in gold. ---------- Stop the Looting; Start Prosecuting - http://www.FedUpUSA.org/ "The only regulation that really works is failure."--Rick Santelli 2012-03-07 18:33:33 Permalink
Vitchilo Posts: 4590 Incept: 2011-04-27	Bertdilbert : Quote: The mispriced risk ensures that all pension funds will be broke beyond what is currently apparent. Yep. Either by inflation or crash. The only way to win is to have assets...food, ammo, guns, real estate... ---------- "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." -- H.L. Mencken 2012-03-07 18:35:42 Permalink
Ghopper Posts: 2306 Incept: 2011-06-11 Staten Island, NY Online	The reason that doesn't happen is that those that own the Government would lose everything. 2012-03-07 19:12:39 Permalink
Rd Posts: 470 Incept: 2008-02-27 Long Island, NY	To me it was just WOW - Maria and the other journalist just kept on agreeing with every point Jim made, how did this slip by the network honchos. There was also a interview on Bloomberg radio today around 3:00 with a fund manager and he said the market is contrived, the reason the market is pushed up is to get confidence back in the consumer. More and more truth and reality, just wait till this new bubble pops there will be nothing left except with what you physical have in your possession. 2012-03-07 19:47:19 Permalink
Themortgagedude Posts: 8849 Incept: 2007-12-17 saint louis	He's Ron Paul's choice to replace The Bernank. Isn't that reason enough to vote Ron Paul? ---------- I'm already visualizing you with duct tape over your mouth. 2012-03-07 20:38:52 Permalink
Steelhead23 Posts: 2041 Incept: 2008-09-09 Portland OR	I submit that in American democracy, the goal of re-election trumps the mission (governing). Hence, when conditions demand the administration of painful medicine that is unpopular (raising rates/balancing budgets), the current crop of leaders lard out placebos - feel-good policies that are ultimately destructive (e.g. QE, stimulus/deficits). Jimmy Carter tried a little such medicine (increasing efficiency standards and lowering speed limits to reduce oil price impacts) and was promptly tarred as anti-American - and Volcker was damned near run out of town for raising rates to end stagflation in the late 70s (Reagan fired him). What this nation needs is politicians willing to be fired for doing the right thing. Among the current crop of hopefuls, only Ron Paul fits that bill. Bill Still might, but needs a record. ---------- "Give me control of a nation's money and I care not who makes it's laws" ~~Mayer Amschel Bauer Rothschild~~ Benjamin Bernanke For-profit commercial banks are a menace and should be eradicated 2012-03-07 20:52:46 Permalink
Ghopper Posts: 2306 Incept: 2011-06-11 Staten Island, NY Online	Quote: "To me it was just WOW - Maria and the other journalist just kept on agreeing with every point Jim made, how did this slip by the network honchos." They have to know what he is going to say, so maybe is this a shot at looking like they were on it. One reason that would happen is they know bad things are coming soon. 2012-03-07 22:22:03 Permalink
200toolate Posts: 391 Incept: 2008-09-25 GA/AL line	he looks so nerdy there's no way in hell he's wrong. and I meant that in a good way. 2TL Last modified: 2012-03-07 22:50:46 by 200toolate Reason: clarification 2012-03-07 22:50:16 Permalink
Traumaboyy Posts: 201 Incept: 2011-05-20 Northwest Florida	"CAPITALISM is an alternative to what we have now, and I highly recommend it!!" This guy rocks! 2012-03-08 01:50:26 Permalink
Etz Posts: 13889 Incept: 2007-06-26 LA	He stands no chance in Obanana Republic against the likes of corrupt mediocres such as Rubin, Summers, and Geithner, just to name a few. ---------- Legal chicanery and beneficent darkness are the banker's stoutest allies - F.Pecora. 2012-03-08 02:09:11 Permalink
Traumaboyy Posts: 201 Incept: 2011-05-20 Northwest Florida	Unfortunately I cannot disagree Etz. 2012-03-08 03:39:50 Permalink
Mannfm11 Posts: 3537 Incept: 2009-02-28 DFW, Tx	I have been reading his quotes for 15 years or more. In fact, his newsletter is a must subscribe for those that can afford it. I looked it up and it is out of my ballpark. I did my best to hear what he was saying, as I was like Karl. Probably the one guy on CNBC the entire week worth hearing. The reason they don't do what Grant says to do is the FSA would have to be cut off and most of these junk bonds would go down the toilet. The TBTF banks would blow up and bankers would have to act reasonably from now on. The redhead brings up the velocity of money. There isn't any owned money to circulate, so the velocity is merely going to follow the supply inversely. The only thing that would speed it up would be the widespread use of credit to make purchases, by credit, I mean putting it on the card as a borrowing, not to be immediately paid back. Grant mentioned asset inflation. These idiots think stocks are going up because of PE's and not because the bankers are manipulating the values. ---------- The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith Last modified: 2012-03-08 04:00:28 by mannfm11 2012-03-08 03:55:05 Permalink
Stuart Posts: 28 Incept: 2011-12-15 Phoenix Banned	There will never be enough "cash" to come close to the amount of "credit/debt" in the system. It is all fraudulent. Bernanke is trying replace the destruction of credit/debt in our deflationary environment by putting cash on balance sheets, eg. MBS purchases, zero value second lien mortgages, etc. We are in the box of ZIRP where we cannot afford to let interest rates rise(blowing out the Deficit). But interest rates must rise if the economy ever got itself on solid footing and started to overheat. That is the contradiction which cannot ever work. I still think that a one off debt jubilee with an issuance of a new sound currency is the only solution. It will be cried as unfair and rewarding bad behavior, but how is what we are doing better? 2012-03-08 11:03:27 Permalink
Jstanley01 Posts: 8176 Incept: 2008-07-30 San Antonio, Texas	Grant is always worth listing to whenever he pops up. In this case he proves himself deft at exposing the humongous blindspot suffered by the Fed and the entire neoCON establishment... Quote: If [artificially holding interest rates low] does not yet have an effect on prices, it certainly has an effect on measured asset values. Interest rates are the traffic signals of a market economy. They tell people to invest or not invest; they are green, yellow, or ... amber. We're green, we're constantly green. We keep on prodding people to do something with money that otherwise they might not want to do. It's called, in the quarterlies, "mal investment." With the vision from their tunnel focused on inflation numbers as the sole indicator of the possible mal effects of their manipulations, Benny Boy and crew are madly forcing good money into risk assets that are not going to perform. And just as soon as Mr. Market dopes that fact out, the whole house of cards will come tumbling down. At which point Lucifer will present them with their only remaining choice: hyperinflate to the moon or let the balloon finally deflate. And either way, they die.... "Choose, sucka's..." ---------- You can't cheat an honest man. ~P.T. Barnum Last modified: 2012-03-08 11:53:06 by jstanley01 2012-03-08 11:09:35 Permalink
Ricka01 Posts: 1214 Incept: 2009-03-05	While I have no idea what James Grant writes in his newsletter, from what I've seen in his columns and tv appearances, this was by far the most confrontational I've ever seen him. Lots of awesome quotes in that video: "It is market manipulation" If this kind of thing were happening in a farmer's market, there would be "an understandable outcry from customers" The fact that this isn't happening shows either how stupid most Americans are, and/or, the pathetic level of self-esteem of the country. "People who want to retire on their savings now need much more cash to do it" "Statue of liberty play.." "The Fed is a piker compared to the ECB" "We keep hearing this propagandistic drum beat" from the Fed And this part of the conversation should be saved for all posterity: Grant: "Capitalism is an alternative to what we have now. I highly recommend it." Maria: "We all do" as in, we all want capitalism. Grant: "No we don't" as in, [verbal bitch slap], you stupid c&^t, you've been talking otherwise on this network for ages. A couple more: "We should be issuing currency backed by a standard, and not on the whims and discretion of a bunch of mandarins who are sitting around Washington D.C." "It is called Mal-investment" 2012-03-08 15:34:02 Permalink*

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