Grant noted however that we should consider the question “in the absence of these really really radical monetary policies, mightn’t prices have been dwindling?” He continued, “[I]f rate inflation now is say, one percent (1%), and if it otherwise would have been minus two percent (-2%) because of the worldwide integration of labor markets, because of the wonders of digital technology, then that increment of what might have been and what is could be seen as a kind of inflation.”
Nevertheless, for Grant, quantitative easing in and of itself has sown the seeds of the destruction of the dollar and other currencies. Grant stated [during a portion of our discussion that you can find below beginning around 26:46]:
[If] the monetary authorities are intent on depreciating the currency, then I think that in the fullness of time they will succeed all too well.
…The important thing about QE [quantitative easing] is this idea, this radical precedent is now on the books — the virus as it were is in the monetary bloodstream.
And next time there’s a problem, what are they going to do? I mean what will they do? They have done more and more at every crisis juncture since the early 1990s.
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