Jim Grant: AI Is “One of the Greatest Bubbles of All Time” (Investing in America Series) #634

Today’s guest is Jim Grant, founder and editor of Grant’s Interest Rate Observer, which he’s been publishing since 1983. He’s a financial historian and one of the most well-respected Observers on Wall Street.

In today’s episode, Jim Grant explains why AI may be one of the greatest bubbles of all time, alongside the railroads and the dot-com era. He reframes deflation as progress, questions how murky the $2 trillion private credit market is, and explains why the Fed can’t aggressively fight inflation. To close, Jim makes his case for gold and revisits 1984, which he calls the clearest example of how strange markets can be.

(0:00) Starts

(0:39) Jim Grant on AI mania

(12:23) The economic implications of inflation & deflation

(19:56) Interest rates and private credit concerns

(27:13) The Fed's inflation target

(41:10) How to fix the Federal Reserve

(45:09) The history and role of gold in portfolios

(54:34) Jim's most memorable investment

(57:28) Historical periods to study

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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 

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Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

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