Jim Grant says he's voting for Trump, but there's always 'impeachment' to get Pence in

Background music for change: Jim Grant

Closely followed market newsletter writer Jim Grant told CNBC on Tuesday that he plans to vote for the Donald Trump-Mike Pence ticket.

"I'm voting for Pence, [and] apparently Trump is on the same ballot," the founder and editor of Grant's Interest Rate Observer said on "Squawk Box" on Election Day morning.

Grant joked: "There's always hope for impeachment after the election. So we get rid of Trump and get Pence."

He said he was paraphrasing Yale's David Gelernter. The professor, in an October commentary in The Wall Street Journal, made a case for Trump over Hillary Clinton because the Republican presidential nominee would be held in check by Congress.

"Ordinary politics says that Mr. Trump will not do crazy things or go off half-cocked, because Republicans in Congress will be eager to impeach him and put Mike Pence in charge. That was the subtext of the vice-presidential debate, though Mr. Pence himself (probably) didn't intend it."

Grant told CNBC he hopes a vote for Trump would usher in a Federal Reserve "that is not about an arbitrary manipulation of prices." Grant has long railed against the Fed's ultra-low interest rates and accomodative monetary policy.

"The rule of law, free markets and individual liberty are, I think, the keys," he said.

Trump has said, if elected, he'd be inclined not to reappoint Janet Yellen as head of the central bank.

A self-described contrarian, Grant also said he'd like to see an overhaul of the election system, so Americans could vote against a candidate, rather than just for a candidate.

"If politics were reformed along my lines one could make a 'short sale' on the ballot. I could vote against Hillary and that would cancel out a vote for Hillary," Grant said.