Tuesday, July 28, 2009

1996 Interview with Jim Grant

It’s amazing some of the conclusions that Jim Grant came to 13 years ago that have turned out to be true. This interview is an illuminating perspective on central banks and markets.

 

AEN: Is it another example of the attempt at monetary central planning?

 

GRANT: It is worse. It is a symptom of Greenspan's fundamental failing that will prove to be his undoing. Before this is all over, there will be a big speculative upset, a loss of faith in financial assets, and a loss of faith in the steward of financial markets: Greenspan himself. His tragic flaw is that he thinks--contrary to the teachings of the Austrian masters--that there is some piece of data that will allow him to see the future clearly and head it off at the pass. He really believes that, notwithstanding what he knows about Mises.

 

There is no worse error. Somebody once told me that when Greenspan went to Washington, he felt that at last he would have the information he needed to make him a great economic forecaster. He evidently thought that in the upper-left-hand drawer of his desk, there was going to be a chart book that would show him everything.

 

http://mises.org/journals/aen/aen16_4_1.asp