Hidden Forces, Released on 11/29/21
Jim has been warning his readers about the unintended consequences of overly-accommodative Fed policy and dollar debasement for as long as we have known him and he is uniquely positioned to provide us with the historical context to understand where we find ourselves in the present cycle.
What we came to this conversation wanting to know from Jim, as someone who has lived through at least 3 major credit cycles, is if in fact, he feels that this inflation is not transitory. If in fact, he thinks that we are in the process of up-anchoring inflation expectations and what this means for the Fed’s policy options, with important implications for assets like stocks, bonds, cryptocurrency, etc., whose prices have depended on the free-flow of credit that becomes less readily available in an environment of rising consumer and producer prices.
This is a phenomenal conversation that will help you integrate the history of inflation and what we know about its causes into the unique circumstances of our modern political economy, which is characterized by historically high debt levels, aging demographics, and technology-driven deflation, in a way that can make you a better, more thoughtful investor.
James “Jim” Grant is an American writer and publisher and the founder of Grant’s Interest Rate Observer, a twice-monthly journal of the financial markets. He is the author , most recently, of The Forgotten Depression: 1921: The Crash That Cured Itself. Grant’s television appearances include “60 Minutes,” “The Charlie Rose Show,” Bloomberg TV, CNBC and other well-known financial news sources. His journalism has appeared in a variety of periodicals, including the “Financial Times”, “The Wall Street Journal” and “Foreign Affairs.”