Author Archive: Michael Kendall
Michael Kendall
December 11, 2016
A Brief Supply-Side History The supply-side revolution originated from the economic policy insights of Robert Mundell and Arthur Laffer. Their solution for the 70s stagflation and economic malaise was the dual policy prescription of a return to a stable dollar…
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Michael Kendall
December 1, 2016
Massive, long-term excess reserves are the anomaly that resulted from deviation of historic Fed monetary policy that began in 2008. From 1913 to 1971 the Fed targeted a dollar fixed weight of gold to determine the economy’s required base money,…
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Michael Kendall
November 24, 2016
The Trump presidency arrives at a time coincident with a unique monetary opportunity. The dollar price of gold (POG) at $1200 is at or near the equilibrium point where creditors and debtors are in balance. What this means is that…
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Michael Kendall
November 11, 2016
For sure, trade is not free. Tariffs are a means to raise revenue to fund government. There is nothing wrong with that. Tariffs funded the U.S. government almost exclusively until the introduction of the income tax in 1913. Combined with…
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Michael Kendall
November 10, 2016
The problem with free trade arises from the beggar-thy-neighbor belief that competitive currency devaluation results in a trade advantage. Without stable currencies that remain equal in value–an international gold standard–free trade becomes a race down the devaluation road. Then the…
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Michael Kendall
October 25, 2016
Understanding Gold 6 Gold’s many properties define it as a monetary proxy. Gold has no real use other than its role as a monetary commodity. Mankind selected it for this role because history has proven the stability of its value. …
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Michael Kendall
October 13, 2016
Jude Wanniski in his seminal book The Way the World Works equates the political market with the economic marketplace. If the market is efficient for goods and services, it is equally efficient at processing the known information surrounding a political…
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Michael Kendall
October 6, 2016
There is a palpable glee among some that is evident whenever the price of gold falls.¹ It manifests itself in the media, academia, pundits, and certain segments of the investment world. Paul Krugman becomes orgasmic. A fall in the price…
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Michael Kendall
September 30, 2016
The Opening Salvo Regardless of what you think about Trump, he recently did the world a big service. He pointed out, in his unique, unadulterated style, the monetary elephant in the room to a global audience. Trump’s attack on the…
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Michael Kendall
September 24, 2016
Fed Operating Targets The latest round of will-the-Fed-or-won’t-the-Fed-finally-hike-rates has passed. The world waited breathlessly for the Federal Reserve to announce their latest FOMC decision. Once again, the Fed punted on announcing another measly .25% funds rate hike and averted the…
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