Jim Grant: Markets Fear "Radical Monetary Policy"

Jim Grant, author of Grant's Interest Rate Observer, explains why the Fed could pursue more radical measures.

JIM GRANT: Well, they're going to do something. I mean the tom-toms are beating in the journals of advanced thought...What they will do with our money...What they want is to abolish currency. What they want is to impose negative interest rates. And what they call direct monetary funding, which is to have the central banks infuse the bank accounts of governments and individuals, bypassing the financial system altogether. So these are the radical ideas that are on the horizon. And my observation is that radical monetary policy begets more radical monetary policy and I think that's what the markets are afraid of.

BILL GRIFFETH: Are we going into recession?

GRANT: I think we're in one.