The long-time publisher of Grant’s Interest Rate Observer notes, among other things, that
“If the Fed examiners were set upon the Fed’s own documents—unlabeled documents—to pass judgment on the Fed’s capacity to survive the difficulties it faces in credit, it would shut this institution down,” he said. “The Fed is undercapitalized in a way that Citicorp is undercapitalized.”
He also questions the common wisdom that you can’t have inflation when there is excess capacity in the economy.
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