Jim Grant: "Central Banks Are Insolvent"

[bobbyw24]

On what the ECB will do:

The ECB has expanded its balance sheet mightily under Trichet. We have a new leader and we have a new imperative. I dare say Europe is going to print money.

On central bank monetization and its implications:

The Italian yields did not fall on their own. It raises questions of overall integrity of market prices. In the US the Fed has nationalized the yield curve. In Europe much the same is going on: the SNB is expanding its balance sheet at astonishing rates of speed. The world over there is seeing immense money printing and there is a huge race to debase on the behalf of the sponsors of paper money.

Central banks are insolvent:

http://dailybail.com/home/jim-grant-central-banks-are-insolvent.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheDailyBail+%28The+Daily+Bai l%29&utm_content=My+Yahoo

[hazek]

I really hate it when he gives central banking legitimacy and says they are "insolvent". How the fuck can an institution that is printing money out of thin air be ever insolvent? I can't for the life of me comprehend why he would say that.

[Athan]

Obviously because the lack of a better word?

[Bern]

Jim Grant is a sharp cookie. @hazek - it has to do with balance sheets. They can print money (future action), but until they do, they are technically insolvent (present status).

[Brian4Liberty]

I really hate it when he gives central banking legitimacy and says they are "insolvent". How the fuck can an institution that is printing money out of thin air be ever insolvent? I can't for the life of me comprehend why he would say that.

Did you watch the video? He is saying that if the Central banks were private companies, they would not pass a "solvency" test. He said they would be insolvent if not for their ability to print money.

[hazek]

Did you watch the video? He is saying that if the Central banks were private companies, they would not pass a "solvency" test. He said they would be insolvent if not for their ability to print money.

Don't you get it? Saying exactly that legitimizes them. It's irrelevant whether or not they are solvent WHEN WHAT THEY ARE DOING IS IMMORAL AND WRONG! Central banks should not exist. PERIOD.