Welcome to Capital Account. The Fed was once credited with what came to be known as “The Great Moderation.” Decades of remarkably strong and steady economic growth coupled with persistently low inflation. However, when looking at today’s era of Fed policy, would this best be described as “The Great Levitation?” Our guest, Jim Grant, founder and publisher of Grant’s interest rate observer, talks about the global unintended consequences of Federal Reserve policy post-QE3 or better yet, “QE to infinity.” Could we finally get that runaway inflation that bond bears have been screaming about?

And as the Eurozone crisis reportedly spooks the markets, Germany continues to be the thorn in the side of the money changers. Germany’s finance ministry said leveraging the ESM to $2 trillion is not realistic. Also, after the Bundesbank voted against unlimited bond buying, President Jens Weidmann gave a speech warning about money printing, plugging gold as a medium of exchange. We talk to Jim Grant about what might have motivated his speech.