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- Grant is pleading for higher interest rates.
- Jim is pretty sure rates can’t go any lower than zero, but then corrected himself by saying that Treasury is making plans to issue bills at rates less than zero.
- 30 years ago people hated bonds; now people think bonds are nothing but safe and that rates can’t go up.
- So far Grant has been wrong warning about the risks of bonds.
- Is in favor of issuing bonds tied to gold bullion; he has owned gold for a long time and still does.
- U.S. actually will have stronger population growth than China and Europe, which is not a bearish thing for the American real estate market.
- Believes growth in population is going to be a better solution to quantitative easing.
- This particular slowdown in the economy is dispiriting for young people who have entered the job market five years ago and know nothing but this economic funk.
- Federal response to a severe recession in 1920-21 was to raise rates and balance the federal finances; that recession lasted less than two years. With current enormous stimulation we are in the fifth year of doldrums.
Link to the audio (about 14 minutes long):
http://media.bloomberg.com/bb/avfile/News/Surveillance/vN114mOLcgPw.mp3
About the author:
http://valueinvestorcanada.blogspot.com/
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