Money and Credit
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…
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Author Archive: Michael Kendall
A New Monetary Order
According to a study of 775 fiat currencies by Michael Hewitt, the average shelf life of a fiat currency is 27 years. The fiat dollar is at the 46 year point. It has long passed its value freshness date and is ready…
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Strong Dollar, Weak Dollar, Stable Dollar
The financial media is abuzz with news of a strong dollar vs a weak dollar. Which way will the dollar go? Traders churn trillions in currency and interest rate derivatives every market day betting on the outcome of this question. …
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Danielle DiMartino Booth: Fed Up – Book Review
The PhD Scourge Danielle DiMartino Booth has written a timely book about the Fed, Fed Up, An Insider’s Take on Why the Federal Reserve is Bad for America. Fed Up deconstructs the Fed from the lofty pedestal upon which conventional wisdom has…
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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 duration of debt.”…
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Market Memo: The MotM Gold Model
The market is still applying the Fed’s old operating rules when pricing gold. Funds rate hikes in the era of massive excess reserves and a bloated Fed balance sheet offer buying opportunities in gold. The general misconception is that funds…
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Fed Rate Hikes II
Financial media, pundits, economists, government officials, and pretty much everyone else continue to categorize rate hikes as if the Fed were still conducting policy under normalized, traditional operating procedures. Bernanke tore asunder normalized Fed operating procedures after the 2008 financial…
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The Wanniski Model
Jude Wanniski was a journalist, WSJ editorial page writer, author, historian, Polyconomics founder, and brilliant revivalist of Classical economics. He passed in 2005 but left a massive compilation of writings that span decades. Jude was a prolific writer. During his Polyconomics…
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Gold Standard Fallacies I
Understanding Gold 8 There’s a very odd thing about a gold standard. Hardly anyone understands it, least of all economists. It’s not like there is no record of the previous three centuries. From the late 1600s until the 1970s, major…
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The Dollar Price of Gold
Understanding Gold 7 The Ratio of Two Ratios The unique properties of gold combined with how the Fed operates determines the dollar price of gold (POG). Similarly, other central banks’ monetary management determines the POG in their currency. Because gold…
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