From the speech, we can learn that James Grant is critical to the current actions of the US Federal Reserve (Fed) and other central banks in other countries. He's saying that they are like kids with a chemistry kit - they are experimenting violently with the economy - without being sure about the outcome of their experiments.
The original purpose of having a central bank was to provide money to the banking system in times of crises. But today, the central banks also seems to care about the stability of the US Dollar against other currencies, unemployment, price stability (inflation and deflation), and so on. But isn't it better if the market decides about the value of a currency against other currencies - and not a central bank?
In the end of the video, James Grant provides to us some investment opportunities:
- Gold - he suggests that gold can increase since people still have confidence in their central banks
- Farmland - it seems that hedge fund managers who don't trust the central banks are buying farmland in the US. They who own farmland don't want to sell it because they can't invest their money with higher returns anywhere else because of the low interest rates
Source: Wikipedia, FundManagerNews