Classical Economics in a Quantum World
“Central banks are treading in uncharted waters. Sidney Homer and Richard Sylla, the authors of A History of Interest Rates found no instance of negative rates in 5,000 years. Now there are $11.7 trillion invested in negative-yield sovereign debt, including $7.9 trillion in Japanese…
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Despite its present day seeming omnipotent power, the Fed still retains only one significant economic lever.¹ This has been true since the Fed’s creation in 1913. The Fed can create base money or remove it. The Fed has complete, total…
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The monetary reference point is where debtors and creditors are in balance. There is no inflation or deflation and neither creditors or debtors benefit at the expense of the other. There is no risk penalty added to terms of trade…
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A funny thing happened on the way to global central banks usurping the market and centrally commanding the price of interest. Economic events began to occur that the history of economic thought never considered. Negative interest rates is one. An…
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