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The Election and Your Savings

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  • Description

    Kaltbaum Capital Management CEO Gary Kaltbaum on Rep. Ryan's call for the end to quantitative easing.

  • Duration 3:45
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This transcript is automatically generated

The call.

We'll stop printing money that's what newly Joseph Republican vice presidential candidate Paul Ryan set an exclusive interview with Fox's Brit Hume.

Ryan called for an end to the Fed's quantitative easing.

I really worry about our monetary policy.

I think it's been a very loose they're very long and I worry.

That we have a monetary policy on a collision course our fiscal policy could and ugly with with the real inflation problem if we don't watch ourselves.

Cut.

And the ugly now we're joined by how bombed -- capital management CEO Gary cal bomb.

Gary thanks sort now.

What do you think -- -- Ryan is right can we afford to honestly stopped easy right now but more importantly.

Is it in any way inappropriate for vice president candidate is critique the policy of the -- that independent fed.

You know I hate the fact -- that the Fed is independent I I have no idea how we ever got to the point.

Where one man and a few of the people around the table.

Can make a decision on trillions and trillions of dollars that aren't even out they -- to move markets in the way they want to move up.

And as far as -- you know the outcome of all this.

I don't think we could even fathom the potential of the outcome going forward.

We have never seen monetary policy policy like -- all we know from the past we've seen too much easing.

It is cause bubbles and in my opinion -- -- the big disaster and housing I say more than fifty to 60% of the fault -- for the Fed.

For -- -- policy too easy for too long.

And also overseeing the lenders and doing nothing about the the crazy lending they were doing.

-- and yet -- that Consumer Price Index data comes out today.

And inflation from 0% dead June to July so so far all this worry about inflation inflation in the Fed pretty much it -- -- come.

-- -- Well you're completely right about the inflation numbers they are way way down that is the good news for the Fed.

Here is the worry and I remember back in the seventy so everything's fine there's no inflation everything's good and all of a sudden it hit and hit hit big.

And all I can tell you go -- any textbook Al they are.

The definition what cause inflation.

Is too much money changed -- cheeks and too few goods and this is exactly what we're seeing at this point in time.

And again.

The important point from -- -- never experienced what we have been experiencing with this fed not to 0% interest rates but the actual creation of trillions of dollars.

I of the repercussions and the dislocations.

You got me what what the potential out -- but I don't think it's gonna be good.

With the with the -- and pick.

Does it in someplace hurt economic rebound because we end up turning a lot of discussion to worrying about easing worrying about inflation and interest rates -- in 1937 the economy suddenly plunged because we don't worry too much about it and it -- its comeback from the effects of -- depression.

While I get back to the point again where 0% interest rates as we were 2% Fed Funds.

You think that would cause any damage and I have to tell you the only losers in this right now.

-- the -- the sabres who spoke to get some it come what the money markets or that money's going towards banks so I don't think this is a real good situation.

And -- the point here is a big unknown here Dennis.

The unknown is what is the outcome of all this who -- what we're putting the crap back into the goose went all the sudden -- I don't know had to be able to be done.

What I'm hoping for is when the Fed does change this stance.

They shut up.

Doug don't say award and slowly but surely change policy because they announce that the markets are so used to what they've been doing -- I think they could cause markets to shutter some -- and they're they're quite but unfortunately the gap every other day.

OK I believe that inducement for on the table there thank you very much of analyst Gary okay.

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