James Grant and James Turk discuss gold, the Fed and the fiscal situation of the USA

James Grant of Grant’s Interest Rate Observer (www.grantspub.com and James Turk of the GoldMoney Foundation discuss the history and mission of the Fed, how mission creep has taken it wildly beyond its initial purpose into the territory of QE, ZIRP and other fiat currency experiments. They talk about who benefit from zero interest rates and how savers are penalized by this easy money policy. They explain that the US have been off the gold standard since 1913, Bretton Woods being only a shadow of the classical gold standard. In the last 40 years low interest rates have encouraged leverage and speculation, which have reached incredible levels. They discuss the fiscal profligacy of the US government. A solution to debt levels could still be found if the political will existed. US strengths and positive momentum could still be harnessed to save the dollar if people’s eyes could be opened. However they conclude that every paper currency in history has eventually gone to zero. James and Jim also talk about ZIRP and the absence of the bond vigilantes after over 30 years of bull market in bonds. How traders no longer care about fundamentals, like balance sheets, but rather focus on very short time horizons and the spreads between funding costs and yields. How this situation is unsustainable. They see gold still as a very under-owned, misunderstood and marginal asset still shunned by institutional investors, with a few notable exceptions which indicate that the tide could be
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26 thoughts on “James Grant and James Turk discuss gold, the Fed and the fiscal situation of the USA

  1. If you’re going to invest in Gold, buy Gold sovereign coins because of their unique status as legal tender, and because they are completely exempt from VAT and capital gains tax. I also prefer them because I´╗┐ don’t trust the government! If they recalled gold again like they have´╗┐ in the past, I think sovereigns will be safer than bullion

    I bought my last gold sovereigns from braystone bullion for anyone that’s interested. Its a good place to start. Lots of shady vendors.

    – JG

  2. Incredible´╗┐ how good he looks for his age, he must take some anti-aging supplements.

  3. You do not have to watch a youtube video. Just pick up “End The Fed” and read´╗┐ how it’d need to be phased out. In order to phase it out, you would need an active fed chairman.

  4. @tjtomkins
    Just to clarify – After Civil War, fiat-money´╗┐ didn’t die because National Banking Act of 1864 had a govt-backed cartel-system but this time we can have private banks issuing their OWN gold/silver-certificates for deposits made with them; as we know, govt-backed cartels don’t work out too well……for ordinary citizens that is (cartelists seem to be do fine as expected)

  5. @TheSecretGuru
    “My question is that if gold goes to $2,500 and a gold standard is bought back in what will happen to the value, will if drop and who will set the standard”

    It won’t be done in a day, as Ron Paul has said & as it happened Civil War when gold-standard was restored, it´╗┐ takes a while, gold & silver can be legalised as tender by getting rid off taxes on them & allow it to compete with toilet-paper (ahem, fiat money) & fiat-money will wither & die

  6. @ford88sw
    “end the fed now”

    Nobody can end it overnight, it’d cause financial chaos, globally; what Paul will do´╗┐ is allow gold & silver as legal tender & repeal taxes on their sale & thereby gold & silver will compete with fiat-money & obviously, gold & silver will win out because people will realize that they retain purchasing-power better than fiat-money & people will simply stop using fiat-money

  7. @Strav777
    “what scares me about Grant and Paul is not admitting one key truth. The USD retains it’s power because it *is* backed by something. That something is oil”

    USD is NOT backed by anything, NADA; unless you think “full faith & credit of US govt” is worth sh!t

    The reason people use USD to buy/sell oil is because US is (has been) seen as most powerful country & therefore most stable among the sea of toilet-paper-currencies India & China are already looking to use gold to´╗┐ buy oil

  8. @livfreeordi3
    Well, he’d have to appoint´╗┐ someone so it’s just an appointment just for the heck of it; he says – “he(Grant) would quit printing money” >>> watch?v=u6KjGBWror0#t=11m41

  9. @packoo
    Same here, look´╗┐ at his Wiki & VERY surprised to know he’s 65, yes, he does look in his 40s ­čÖé

    Ron Paul 2012

  10. supposedly clever, but ultimately stupid remark…wtf does´╗┐ this have to do with the discussion?

  11. 1913: the year that Newtonian rationalism was thrown´╗┐ out the window together with Lockean natural rights and Thomist just war theory. Thank you president Woodrow Wilson!

  12. I also want to Point another thing out about what you said. Yes, the American Dollar are backed by Oil, because all of the American Gold are stolen by the Federal Reserve. They been lending to the US government as a private own banker, and Congress has given them all of our Gold and the power to print American Dollar as assets. Muammar Gaddafi is dead, and we bomb the shit out of Libya because Gaddafi´╗┐ refuse to sell their country’s oil to US dollars. Thats the real truth.

  13. You also need to understand, Paul has went on many presidential debates, Telling everyone that we can have a gallon of oil for a price of dime. We have plenty of oil here in America and Alaska,´╗┐ But the big bankers, lobbyist and the Feds are keeping the American people from Drilling our own resources to support our own economy. We are in all these war, spending the American people’s wealth, so Big corporations and Big bankers can get rich.

  14. That is why Paul and Grant are advocating for gold. Because they know there is no way to keep the world on the petro dollar standard. The US will eventually have to go back on the gold standard to prop up the dollar. If not the dollar will collapse and we’ll have to rely on a new currency. A world currency maybe?´╗┐ lol

  15. Good interview – however what scares me about Grant and Paul is not admitting one key truth. The USD retains it’s power because it *is* backed by something. That something is oil. All countries must buy their oil in US dollars – and that alone is´╗┐ the reason the US has been able to run huge deficit spending since 1971 – and central banks hold USD to buy oil to run their economies. It is also the reason for continued US presence in the middle east. Petrodollar system.

  16. He’s´╗┐ a sharp fellow, but someone should tell him the bow tie was in the christmas packaging, not the packaging itself.




    RON PAUL 2012.

    OWS….BRING IT TO THE 1 %………..




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