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“Fed Has Fingers & Thumbs On The Scales Of Finance,” Grant Tells Santelli And It “Will End Badly” | Zero Hedge

“Fed Has Fingers & Thumbs On The Scales Of Finance,” Grant Tells Santelli And It “Will End Badly” | Zero Hedge.

In a mere 140 seconds, Jim Grant explains to an almost stunned into silence Rich Santelli how we all “live in a valuation hall of mirrors” as the Fed manipulates everything. Thanks to it’s “fingers and thumbs on the scales of finance,” Grant continues, the Fed “insists on saving us from ‘everyday low prices'” – what they call deflation – and by doing so it manufactures “redundant credit” which “does mischief” in and out of markets. Grant, ominously concludes, “there is no suspense as to how [this will] end… [it will] end badly.”

Must watch… (especially for EM asset managers)…

Jim Grant Warns America’s Default Is Inevitable | Zero Hedge

Jim Grant Warns America’s Default Is Inevitable | Zero Hedge (FULL ARTICLE).

There is precedent for a government shutdown,” Lloyd Blankfein, the chief executive officer of Goldman Sachs, remarked last week. “There’s no precedent for default.”

How wrong he is.

The U.S. government defaulted after the Revolutionary War, and it defaulted at intervals thereafter. Moreover, on the authority of the chairman of the Federal Reserve Board, the government means to keep right on shirking, dodging or trimming, if not legally defaulting.

Default means to not pay as promised, and politics may interrupt the timely service of the government’s debts.The consequences of such a disruption could — as everyone knows by now — set Wall Street on its ear. But after the various branches of government resume talking and investors have collected themselves, the Treasury will have no trouble finding the necessary billions with which to pay its bills. The Federal Reserve can materialize the scrip on a computer screen….

 

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