Jim Grant, of Grant's Interest Observer, has continued his call that the great bear market has begun.
Grant went on the MacroVoices podcast to discuss his views on various topics. The interview was highly informative for anyone who thinks different and thinks that no bull market can last forever. Grant discussed that he believes Treasury markets move in generational cycles, and policies maker can't control them.
During the interview, Grant discussed the 1940s' decade-long low-interest-rate environment that saw gradual rate increases. Throughout the interview, Grant made it clear interest rates will rise faster thanks to the large debt load of the government. He believes that as interest rates rise, people and institutions will de-risk their portfolios to avoid more risk.
Grant wants to see rates rise and earning multiples deflate to more reasonable levels; he doesn't want to see the world end. Grant seemed confused by why U.S. Treasuries are out of favor with bond speculators but European sovereign debt isn't. He clearly believes that the U.S is in far better shape than Europe and finds its hard to believe that Europe countries can handle higher interest on their sovereign debts.
Grant discussed the fact that he's in the inflation camp and believes that it will turn en force. He made it clear that inflation isn't easy to control, and governments and central banks can't stop creeping inflation. Grant believes that gold will do better than all sovereign nations currencies thanks to inflation and high interest on debt loads.
Jim Grant interview:
