By Daily Crux Editor Sean Goldsmith:

In this video, Jim Grant, editor of Grant's Interest Rate Observer, tells CNBC how broke our government truly is, and why inflation may be a long ways off.

Some choice soundbites, transcribed by ZeroHedge:

"If the Fed examiners were set upon the Fed's own documents - unlabeled documents - to pass judgment on the Fed's capacity to survive the difficulties it faces in credit, it would shut this institution down."

"The Fed is undercapitalized in the same way that Citicorp is undercapitalized."

"I think zero is the wrong rate for almost any economy."

"So great is the slack in the economy that it will be years before there is anything like a murmur from the inflation front."

"15 out of 16 primary government bond dealers are in agreement that the Fed will not move before the year end."

"There are no bad bonds, just bad prices. Treasuries at 2% were a toxic asset."

Watch the video...

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