Jim Grant: Interest rates ought to be discovered in the market, rather than imposed or suppressed

Jim Grant, Grant’s Interest Rate Observer founder and editor, joins 'Squawk Box' to discuss the latest market trends, the Fed's inflation fight, the impact on the economy, and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
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[@TheGrasshopper009]

Jim Grant’s style, intellectual capacity, and willingness to have the conversation is unbeatable. Bravo Mr. Grant.

[@DonaldMark-ne7se]

I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat

[@kevinmarten]

I think the whole thing about holding stocks for long term will always apply. So I think you should get a quality broker who is able to analyze and pick stocks that will do well in the long term, else you will be in a long bear ride.

[@Jamessmith-12]

You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a broker, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.

[@JacquelinePerrira]

This sound interesting. I’m not really one to use pro analysts, but I guess it would not hurt to try one. My portfolio is in the red waters right now

[@Jamessmith-12]

When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.

[@JacquelinePerrira]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@bernardallen55]

We are faced with fresh issues every day. It now serves as the norm. We initially mistook it for a crisis, but now we recognize it as a new normal to which we must adjust. What actions may we take to increase income during the quantitative adjustment since 2023 will be a year of tremendous economic suffering for the whole country? I can't allow my $800k in savings to disappear after all my hard work.

[@mikeharry96]

My belief is that the US dollar's value affects investments in a variety of ways, but having a trained portfolio adviser who can research and experience a completely broad market has never made figuring out how to grow your money easier.

[@danieljackson87]

Utilizing a portfolio advisor when investing is, in my opinion, fantastic. I was really suffering financial nightmares before speaking with a certified portfolio advisor, right before the pandemic crash in March 2020. In conclusion, I have so far increased my initial $460k investment to over two million dollars with the help of my advisor.

[@andrewlogan7737]

@@danieljackson87 Where may one locate a wise FA? Even while I like the idea of using their services, it's unfortunate that recent stock market catastrophes have started to happen more frequently.

[@danieljackson87]

Julie Anne Hoover is the brokerage adviser. She has been quite helpful, and as a result of her advice, I now have a better understanding of how to make money. You can reach her by looking for her online and heading to her page. She is an expert in her field.

[@kingjustice1831]

Refreshing! Someone telling the truth, but the problem really is who is listening. This economy is whistling pass the graveyard.

[@masterstacks2030]

dam he got shut down quick as soon as he mentioned that the fed was broke LOL

[@stevenb1969]

Interesting, also interesting joe didn’t get the point that grant was saying the fed can’t always control rates

[@bobslate7231]

Interest rates have been unusually low since great recession 2009. Should have never been prime 0.

[@parkerbohnn]

Bernanke destroyed all my bank accounts.

[@bonniek3985]

Great job CNBC with Jim Grant and Barry Diller on the show today. Lots to think about.

[@arbitrader893]

"What happens when people bet on rates coming back down to near zero"? Let them go broke and learn not to gamble.

[@ISpitHotFiyaa]

It's not the worst bet in the world. If treasuries go to 6% across the board then half of all federal tax revenue will go to paying interest on the debt. JPow and his money printer won't let that happen.

[@Ed-pv6ke]

Wonderful interview. Can you guys sponsor a longer format somehow with folks like him?

[@LurchLures]

Anyone who listened to Mr Grant for 10 minutes a few years ago ( I did) would have forseen and been forwarned and thus been saved from the bond route we have since been through. Bonds might not seem exciting but if some clown is investing your pension or other hard earned net worth in them simply based on short to medium term experience rather than logic and fundamentals then time spent listening to Jim is very well spent.

[@MegaPapa8888]

Should let Jim Grant continue his thoughts.

[@BiancaD.Jordan]

Putting well-earned money into the stock market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me? I'm nearly 60.

[@PatrickVien-ik5pb]

It's a good idea to seek advice at the moment, unless you're an expert yourself. As someone who runs a service business and sells products on eBay, I can tell you that the economy is struggling and many people are struggling financially.

[@CuongNguyen-o1d]

Exactly why i enjoy my day to day market decisions being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not outperform, been using a portfolio-coach Like Mark Stuart Jordan for over 2years+ and I've netted over $800k.

[@EricMathew-rx9ol]

Impressive can you share more info?

[@Alexanderwilliam-yx9pk]

Firms can be unscrupulous as they prioritise their own commission over your profitability. On the other hand, I prefer working with individual investors like MARK STUART JORDAN, who only take a share from your profits, not your initial capital. I must say, my experience with him has been exceptional thus far.

[@JuanaAlthea]

Thank you for this tip. It was easy to find your coach Mark Stuart Jordan from the web. Did my due diligence on him before scheduling with him. he seems proficient considering his résumé.

[@PrinceGeorgexiii]

Wish it were longer. Brilliant

[@parkerbohnn]

I wish it was higher forever for the sake of my children.

[@yiyi-py3ew]

"Thank you for sharing your knowledge and expertise in this video. It's obvious how passionate you are about this topic!"

[@GaryARahn]

In this guy's world zero to sixty in six seconds is fast. He's probably still driving a 1976 Mercedes-Benz 240 D.

[@miketdarnell]

Thank you I laughed so hard

[@GaryARahn]

@@miketdarnell if verbal masturbation is a sin, that motherfuker is going to hell.

[@Scottieguru]

All this blah, blah, blah. The fact is; You can't print money and circulate it through an economy without matching the volume of cash with an equal amount of service and goods. This is what makes currencies worthless. THIS IS WHAT INFLATION IS.

[@lakeguy65616]

restating: inflation is too much money chasing too few goods and services.

[@Scottieguru]

Raising interest rates is THE ONLY tool the Federal Reserve has to claw back all the excessive amounts of cash circulating in a bloated asset economy. Once interest rates hit 7% or more stocks become a liability to bonds. High cost of borrowing weakens the economy thus creating a downfall with employment, business expansion and capital investment. Business profits shrink. Consumers cut back on discretionary spending and the cycle spirals down to a market bottom. Those who will have EXTRA CASH will then benefit from rock bottom prices in equities. Companies with next to no debt with decent cash flow and profits can then buy back shares in a low volume market capitulation. Many companies will go bankrupt, others will be bought up by fiscally healthier companies with piles of extra cash.

[@DiegoGonzalez-v4z]

ive been keeping a close eye on everything and its clear to me that the pandemic was the start to all of this and with the stimulus checks,cutting off the oil pipeline on top of funding the war in ukraine have made it all contributing factors as to why we are where we are today economically

[@ESGisascam]

Never trust anyone who wears a bowtie. This guy has been wrong for 25 years.

[@FLAC2023]

Yeah, he's advocating free market nonsense for years... there's never been a free market, he lives in La-la land 😂

[@parkerbohnn]

and he'll be wrong again as we'll see when the Fed funds rate plunges next year in the election year.

[@Bobhenry-c7z]

Interest rates have been unusually low since great recession 2009. Should have never been prime 0. At this point, I'm still at a crossroad regarding whether or not to liquidate my $138k stock portfolio. What’s the best way to take advantage of this current market?

[@roberttaylor662]

Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.

[@VanPelt54u7fcyde57]

I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000

[@Andreallln]

Please, could you recommend the FA you work with? I could really use some help right now.

[@VanPelt54u7fcyde57]

Big Credits to ''Monica Amanda McClure'' she has a web presence, so you can simply search for, there are some others but it might be difficult to get them, but Sharon has been a good guide through the year.

[@Andreallln]

Researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals and scheduled a call.

[@MarieCornwell-pi1rq]

The current economic system contributes to instability, inflation, and poverty. A new Creative Society economic model is required, one that can guarantee everyone's stability, security, and a high standard of living. But unfortunately, whenever the leaders we depend on appear on TV to tell us not to panic that everything is under control, that is actually the time to fear the most! Saddening...

[@pch5938]

"Events" may go wrong, well said.

[@edawg654]

So…Bitcoin 😂

[@bradb2175]

Eggheads should not be in charge of anything important.

[@jonpaul6780]

I agree with Jim! 😅

[@villagecpa]

What a novel idea! Get the damn government out of the way.

[@eh7599]

Lots of things "ought to be"

[@ES175jazz]

Long bond was at 14% in the eighties things are much worse fiscally today so think about that for a moment!

[@parkerbohnn]

I got 17.5 percent on a 50 year strip bond up in Canada in 1981.

[@sscalercourtney5486]

We did this back early in our history. Leaving everything up to the market made for absolutely terrible times. The people who lived during those times wanted change, not leaving everything up to the market. This was the real world, not intellectual thought. I'm sure the FED is wrong at least a little bit on every decision. But between 1880 and 1930 there was a Depression (Panic) meaning a contraction of at 25% on average every six years. Since Roosevelt and his Congress and the Fed have generally followed half of Keynes thoughts, we not had a 25% contraction in 90 years, versus every every six years on average before the Fed adopted half of Keynes. Keynes thought during good times we should cut spending and raise taxes to build up a surplus and even out the economy from wild swings. This is the half no one, left or right has ever followed.

[@goneviral8814]

Fed knows if they keep rates this low, it'll be the end of the US dollar 😢

[@CoverBydAn]

Joe checking his freaking phone during interview. What a professional Professional !d!ot

[@lakeguy65616]

drives me crazy the way he interrupts those being interviewed. Its them we wish to hear!

[@aliasoma]

Misleading headline.

[@ctzoomie]

ZIRP and QE will prove to be a historical disaster. What on earth were the so-called smart guys thinking !?

[@parkerbohnn]

The actually gave Bernanke a Nobel prize. Look at the shape the entire world is in today with poverty higher than ever, homelessness higher than ever all a direct result of Bernanke's financial policies.

[@w3s77]

Other than that, how was the play? Where can I get some good crickets?

[@emptyempty1310]

BrRRRRRRrrRRRRRRr.... that's the money printer

[@BookerT1]

i don’t think anyone is betting on 2% again.

[@parkerbohnn]

I am because I know how bad my luck is.

[@BookerT1]

@@parkerbohnn that means theres another great recession/financial crisis around the corner. imo at best we will see 6% in the short term….. long term who knows 🤷🏽‍♂️

[@DarkBrandon1]

He’s comparing times where we were under a gold standard with fiat standard. This is flawed.

[@GaryARahn]

His premise that the fiat currency is uncollateralized is flawed. It's backed by (mostly) mortgages, car loans, business loans, and student debt.

[@FLAC2023]

He's been wrong for decades

[@method341]

​@@GaryARahnbut that is the very premise of a fiat currency, is it not? If its backed by something its not really fiat, its a derivative

[@scottyflintstone]

CPI should include taxes

[@jamisonmunn9215]

Rates should be much higher and should always stay higher.

[@parkerbohnn]

I wish you had Powell's job. Higher forever has such a nice ring to it.

[@James-mb5jr]

Bingo! Don’t the Fed officials look at their own data with regards to financial conditions?

[@lv4077]

I suffered, probably irreparable damage at one point in my life ,when I dedicated the time to reading Greenspans 800+page tome on his experience at the fed. After that entire book the only thing I really got out of it was sometime they did the right thing,sometime they did the wrong thing but all in spite the data and all the theories, and there was no predictable correlation between their actions and the results. There are far too many variables in the economy both locally and globally to effectively navigate the treacherous waters of financial life.

[@jivepatrol6833]

I'm surprised they let him speak on "Bubblevision"

[@Rainy_Day12234]

Allowing borrowers and lenders to set the price of a credit transaction…..the horror.

[@skaravolos]

He discredited himself when he said 0-60 in 6 seconds was fast. 🦖

[@Casey-qm1nd]

Cash is king

[@Casey-qm1nd]

Never thought I would say this. Normally cash is trash.

[@johnmaris1582]

Cryptocurrency is exactly what he described - completely market driven money supply and interest rate. Result of which volatility no one can stomach.

[@letsdanceonhere]

Oh man. Jim Grant was on a rule. Cut him off?

[@javsanch7682]

Rates aint true problem its the house prices

[@parkerbohnn]

The entire world knows its the Chinese they just haven't destroyed all of America yet. You can still buy a house for under 2 mullion but that won't last long.

[@R3tr0v1ru5]

Free markets over centralised government.

[@parkerbohnn]

That ended in the old West.

[@aarpees4183]

…..good to see him being cutoff by the Lady , or he would have said too much 😂😂

[@lakeguy65616]

The Fed needs to be constrained. Tie growth of the money supply to growth in GDP.

[@edawg654]

It’s called Bitcoin

[@lakeguy65616]

@@edawg654 keep dreaming

[@edawg654]

@@lakeguy65616 you will eat your words soon

[@HandleBop]

Bow ties are back in

[@johnnymartinARTIST]

Gotta give Becky kudos for patience...letting Jim finish his thought- even though I could have washed my car waiting for him to make his point...She must have learned THAT from interviewing Charlie (get off my lawn) Munger!

[@miketdarnell]

She loves the Older experts

[@FLAC2023]

This guy lives in La-la land... been wrong for 15 years... There's never been a free market.... And today's world makes it impossible... Someone has to be in control of the market and I prefer the Fed despite all it's flaws than some outside player/players, country/countries.... this is obvious

[@Nuganics]

We used to control the exchange rates also based on the same logic but the world didn't get worse when we let the market decide so why is it different with interest rates?

[@FLAC2023]

@@Nuganics too many players with too much money that can manipulate the market...you can't allow that... show me ONE market that's free in today's world... just one....

[@Nuganics]

@@FLAC2023 : so you want to go back to centrally controlled exchange rates as it has too many players there with too much money there also? The FX market is a free market, a free market just has a marginal buyer and seller voluntary exchanging. If either party doesn't like the price they don't exchange. So why not have a insurance market like the FX market?

[@FLAC2023]

@@Nuganics I think some " private" players are already managed by the Fed through secret channels... and who knows what the Fed and other central banks have been doing for years and " when"... and I don't think FX market is free...Fed is everywhere...

[@KungPowEnterFist]

This prophet wants to hyperinflate the dollar out of existence.

[@bahlsdeepe868]

You clearly do not understand that the federal reserve is the cause of the inflation problem...🤦🏻Jim is making the point that markets work themselves out without the need of an omnipresent entity who is playing puppet master.

[@Thlastday00]

He? Or people that control the monetary system will hyper inflate the dollar?

[@FLAC2023]

He's been wrong for decades

[@spokesperson_usa]

Bitcoin fixes this.

[@matthewmarshall7996]

Nope. Back to 0

[@chobar0001]

🐕‍🦺💣🤏👋