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Grant Says U.S. 'On the Road' to Socialization of Credit

In this interview with Bloomberg, Jim Grant outlines the dissolution of the Federal Reserve as "an exercise in satire in service of a point."

As every major financial institutions is required to plan for its insolvency . . . why not require the Fed to do the same?

Some notable quotes:

What's good the goose is good for the gander . . . in as much as the Fed itself is a mighty financial institution - too big to fail - and in as much as it was the author of this feast of disaster - or principal author - why not the Fed itself be required to draw up a living will?

"When you begin thinking about the state of affairs in which the government can order these banks, which are so beholden to the taxpayers, to make plans for their own failure, it drives home the point that we have been on the road to the socialization of credit for many, many decades, and now we're kind of there. I mean of course, the next time there is a crisis, the taxpayers will ride to the rescue. They will subsidize these great, big dumb banks with their dollars and with their foregone interest income, because interest rates will again be driven to zero.