Fed’s “Market Manipulation”
We noted earlier today how the Fed released possible plans via the Wall Street Journal during the trading session and once again altered the tone of the markets. James Grant of the Interest Rate Observer was interviewed on CNBC with the topic being Fed policy. The full interview and some excerpts are below:
“We should call this what it is…this is market manipulation”
“The Fed and central banks the world over are, in unprecedented ways, manipulating the value of the currencies they print. They are printing them by the ton.”
“The Fed is manipulating perceptions of risk.”
“The Fed is, in effect, dulling the risk sensors of the entire market place. Is this good?”
“This is the Fed interposing itself into the market place.”
“The Fed is creating distortions. What has the Fed got against the price mechanism? It’s gotten this country a long way over 200 years.”
“Somehow as soon as the market sells off, we have a Fed interjection of money.”
“The ECB’s balance sheet has positively exploded.”
“The world over, we are seeing unprecedented things.”
“The central banks are printing like mad.”
“I think it’s all terribly dangerous.”
“We keep on hearing this propagandist drumbeat of assertion that in order to get us out of our sorrows they, the authorities, the high and mighty ones, must run immense deficits, they must cut interest rates to the bone, and they must starve savers.”
“Capitalism is the alternative to what we have now. I highly recommend it.”
