Central bankers are in the business of "currency manipulation," James Grant, editor of Grant's Interest Rate Observer, told CNBC Thursday.
He wants a "modernized, 21st century gold standard that checks the capacity of central banks to print money."
"I am for more rope in regard to the government’s hands and less rope around the hands of people in enterprise," he said. The problems in the U.S. economy come from an "accumulation of government initiatives and the sum total gets you to $14.3 trillion in the debt crisis."
The fact the U.S. can pay its bills in dollars, the reserve currency, and that it can print more as needed, creates "a world of immense distortions" and is one reason why the price of gold has skyrocketed and stocks have been volatile.