Inside The Minds Of Central Bankers (w/ James Aitken) | Jim Grant Series | Real Vision™

Inside The Minds Of Central Bankers (w/ James Aitken) | Jim Grant Series | Real Vision™


one of the many mistakes I’ve made over the
years is by projecting myself upon central bankers from saying oh, they must, they should,
surely, which from an analytical perspective was a mistake. No. You have been very good. I must say as a reader of your stuff, you’ve
been very good at doing what we at Grant’s do rather too much, which is to remind the
central bankers that they are miserable central planners Manqué and that if they would just
stop doing what they’re doing, we’d all be better. So that’s our line. And you have that much more, shall we say,
a much more nuanced approach the central banking– which I guess is good for some people, James,
like your clients. Well, you never know. But Jim, the serious point here is– and it
applies in spades to the Fed right now– people saying they must, they can’t, they will, they
should. It’s like, hold on a second. Let’s just step back and think. And it’s hard to do– step back and imagine
what you would do if you were in that chair– in Jay Powell’s chair– thinking about the
Federal Reserve Act and their mandate and institutional imperatives at what we might
describe as a politically charged time. It’s really tricky. So your baseline is well, frankly they’re
all trying to do something that nobody’s ever done before, which is incredible. The Fed is trying to unwind their balance
sheet in a slow, gradual measured way. Actually, unwind is not quite correct. They’re trying to wind down slowly. What would we do if we were them? When you were young and frolicsome–
Back in the day. Back in the day. No. Let me ask. This is a serious question. Right. Perhaps you were present when one of the age
old pranks was demonstrated for a fraternity brother or maybe just some pals of yours. So you’re in the dining– I think you had
some experience in catering. Diners had left the dining room and it’s time
to clear away the silverware and the China. And somebody says I can do this. I can clear this without disturbing the glassware,
the crystal. I can remove this tablecloth. And so here’s what you do. So this person who says this actually is bluffing. Because he actually has never done this before. So making the rookie error, he very carefully
begins to pull. And the crystal, before you know it, is clattering
on the floor. And somebody is in trouble. The way to do it, of course, is to yank. Right? So the central bankers are pulling so gradually,
saying don’t notice. It’s going to be fine. Is the analogy invalid? Should they be yanking and let markets adjust
subtly? Or are they correct in pretending, at least,
to effect this change ever so gradually– so gradually we won’t notice it? From a self-interested perspective I’d say
bring it on. That would be an interest–
It’s good for business. Indeed. But realistically–
As a citizen of the world, no? Well, perhaps. But imagining one is them and their incentives–
and let’s think about the position and perspective of someone like Jay Powell. He’s finding his way into one of the most
incredibly important jobs around, which is Chairman of the Board of Governors of the
Federal Reserve System. His focus is on not messing up, not messing
up. I don’t want to be the fall guy. I don’t want to be, at least not yet, in a
Trump tweet. How do I solve for that?

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3 thoughts on “Inside The Minds Of Central Bankers (w/ James Aitken) | Jim Grant Series | Real Vision™”

  • The error in the assumption is that we're dealing with normal people in the international banking cartel. They're not normal, they're psychopaths. If the normal people of the world understood the ponzi scheme that robs people and nations of their wealth, perpetuates endless wars, and if we understood their end game of pretty much getting rid of most of us (see the Georgia Guide Stones), there would be a worldwide revolution to take back our freedom.

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