Classical Economics in a Quantum World
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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George Gilder has authored a prescient piece that succinctly sums up the challenges that the Trump administration faces in righting the global economic system. Titled Trump Can Succeed On Trade By Ending Global Currency Manipulation, Gilder gives fair warning that the…
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Update: I learned on 1/5/2017 that the Wilbur Ross tweet referenced below was from a fake account. This is good news if the Trump administration is in fact not advocating a weak dollar, despite contrary suggestion from the Nikkei Asian…
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Giovanni Capriglione came to his understanding of gold the way most do. He opened his eyes and looked around. The world does not always shape to the narrative that the educational system instructs and that government institutions desire. His mother is from Venezuela,…
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A Brief Supply-Side History The supply-side revolution originated from the economic policy insights of Robert Mundell and Arthur Laffer. Their solution for the 70s stagflation and economic malaise was the dual policy prescription of a return to a stable dollar…
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Massive, long-term excess reserves are the anomaly that resulted from deviation of historic Fed monetary policy that began in 2008. From 1913 to 1971 the Fed targeted a dollar fixed weight of gold to determine the economy’s required base money,…
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The Trump presidency arrives at a time coincident with a unique monetary opportunity. The dollar price of gold (POG) at $1200 is at or near the equilibrium point where creditors and debtors are in balance. What this means is that…
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For sure, trade is not free. Tariffs are a means to raise revenue to fund government. There is nothing wrong with that. Tariffs funded the U.S. government almost exclusively until the introduction of the income tax in 1913. Combined with…
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The problem with free trade arises from the beggar-thy-neighbor belief that competitive currency devaluation results in a trade advantage. Without stable currencies that remain equal in value–an international gold standard–free trade becomes a race down the devaluation road. Then the…
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Understanding Gold 6 Gold’s many properties define it as a monetary proxy. Gold has no real use other than its role as a monetary commodity. Mankind selected it for this role because history has proven the stability of its value. …
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