Author Archive: Michael Kendall
Michael Kendall
September 9, 2017
Global reserves preference in fiat U.S. dollars or gold The Nikkei Asian Review reported a global financial bombshell on September 1, 2017. “China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into…
Read more
Michael Kendall
August 12, 2017
One way to look at central bank normalization is to envision optimum monetary and fiscal policy and work backward to what is actually possible. Optimum policy is the magic formula of stable money and low taxes. Stable money and low…
Read more
Michael Kendall
July 31, 2017
The old rules for evaluating market performance no longer apply. From 1973 to 2008 one could predict market performance based on understanding the gold signal, how fiscal and geopolitical policy affected the supply and demand for base money, and how…
Read more
Michael Kendall
July 17, 2017
The economic term normalization has entered the financial lexicon and will soon dominate markets. As with everything the Fed has done since Nixon ended dollar stability by severing its link to gold in 1971, the advent of normalization is just…
Read more
Michael Kendall
June 28, 2017
The Fed learned from the taper tantrum that in our hybrid central bank commanded/market economy it is best not to surprise the market. This requires notifying the market far in advance of any change in Fed policy. The Fed has…
Read more
Michael Kendall
June 21, 2017
The Kendall Rule “As long as excess reserves persist, with IOR, in amounts necessary to facilitate Federal Reserve control of the price of interest, the trend for the minimum price of gold is determinative by its average price over the…
Read more
Michael Kendall
June 14, 2017
The complement to understanding the dollar price of gold is understanding how the Fed works. Google “how the Fed works” and you won’t find much. Most is bland repetition from federalreserve.gov to satisfy the bureaucratic requirement of a quasi government…
Read more
Michael Kendall
May 30, 2017
For the world to solve its economic problems, it needs to arrive at a consensus about what actually works in economics. More importantly, the economics profession needs to discard economic ideas that history has proven over and over do not…
Read more
Michael Kendall
May 22, 2017
Part II of Money and Credit. See Part I Bernanke’s Fed upended traditional Fed operating procedures after the 2008 financial crisis. Bernanke made his academic career as a Great Depression “expert”. His belief that the GD was a monetary event…
Read more
Michael Kendall
May 13, 2017
What is money? That seems like a simple question. It’s mainly the green stuff in your pocket that you want more of, but it leads to all sorts of confusion in the economic world, with harmful results. It is the…
Read more