Classical Economics in a Quantum World
Inflation and deflation are a basic component of economics. Yet, the Federal Reserve, which has monopoly control of the value of the dollar, admits that they “aren’t sure they understand how inflation works anymore.” That a currency must be stable…
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The Fed unleashed a coming market inflection with the onset of normalization. In our global fiat system, as long as the dollar remains the world’s reserve currency, the Fed forces global central banks to adopt its policy. A Fed balance…
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Cryptocurrency’s value comes from its fixed supply, deflationary design combined with the promise of digital, decentralized transactions recorded on a permanent blockchain ledger. But its flawed monetary design, that is the underlying reason for its value, makes it unsuitably volatile…
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On October 2, 2017, Market Memo: Normalization, Tax Cuts, Geopolitical and Gold, I wrote: What this means is that the price of gold (POG) will continue to adhere to the Kendall Rule. The initial steps of normalization, tax cuts, and…
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In Part I, I examined Wright’s monetary views expressed in The illusion of scale in segregated witness. It is a rehash of Friedman’s failed monetarism experiment of the 70s, with fixed money supply instead of constant supply. Monetarism without an…
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Craig Wright, the Australian mathematician and serial academic credential achiever, is widely associated as Satoshi Nakamoto. Andrew O’Hagan wrote The Satoshi Affair, a long account of the events leading up to Wright’s public failure to prove he is Satoshi. Wright…
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While an increasing cryptocurrency market valuation is indicative of greater acceptance, it does not define its legitimacy as currency. In other words, a currency’s legitimacy is not based on its market valuation but rather on its potential for stability of…
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Cryptocurrency is money, not a rare artifact of speculative value. Decentralized issuance beyond the control of government or central banks is the essential tenet and attraction of cryptocurrency. The immutable, public ledger blockchain provides the foundation for peer-to-peer commerce in…
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Nathan Lewis has written the third in a series of books about gold. Gold is innately understood by all, but theoretical knowledge has wandered in the economics wilderness for nearly a century. I call this the Gold Paradox. Academia and…
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Money has three roles; a medium of exchange, store of value, and unit of account. A unit of account is the most important role of money and the least understood. A unit of account is a monetary standard of reference. …
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