“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 duration of debt.”
Special thanks to Stephen Shipman for initiating the Kendall Rule.
I don’t understand this quote, especially the second part. Could you explain it in layman terms?
The trend upon which I base the Kendall Rule became apparent to me in June 2015. The price of gold has directly correlated with the Kendall Rule since that time. I will explain it in a subsequent post on Man on the Margin.
Thanks for your interest and comment.