Author Archive: Michael Kendall
Michael Kendall
May 20, 2019
The Anti-Economist Nathan Lewis explains economics in an easily understandable way that cuts through the econobabble. Like most citizen economists, he approaches economics from a reference of common sense rather than academic haughtiness. It is surprising how many economists in…
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Michael Kendall
May 6, 2019
Returning to a Gold Standard and Gold Equilibrium looked at the relationship between the optimum price of gold (the price level) and the spot price of gold (POG). A return to a gold standard, without the induced economic stress of…
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Michael Kendall
April 22, 2019
Why the U.S. could return to a gold standard at $1300/oz without risk of inflation or deflation There are two prices of gold. There is the market spot price of gold (POG) and an optimum POG which represents the price…
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Michael Kendall
April 11, 2019
Trump’s nomination of Steve Moore and Herman Cain to Fed Board positions has shaken up the Fed establishment. Moore is advocating a CRB (commodities) Index target while Cain has written in favor of a gold standard. A gold standard or…
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Michael Kendall
February 16, 2019
In January 2018, I saw a market inflection occurring due to Fed normalization. I wrote Market Memo: Market Inflection. The week I wrote it, the Dow hit 26,600 and then began a decline. Capital flows to where it receives the…
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Michael Kendall
February 15, 2019
The Fed creates money based on a monetary standard. Think of a monetary standard as the Fed’s carburetor that regulates how much liquidity gets injected into the economic engine. To maintain a standard requires adjusting base money supply to hit a specific…
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Michael Kendall
February 3, 2019
The clearest way to understand current Fed policy and its effect on markets is to view it through interest rates. Interest rates are the price of credit. Credit is not money. When a bank creates credit, it does not create…
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Michael Kendall
January 3, 2019
Measurement requires a standard of reference. We accept this universally in the mathematical and scientific world. Suggesting that the length of the meter or the volume of a liter be constantly changed and tinkered with would defy common sense. Money…
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Michael Kendall
December 22, 2018
Start with the basics of money. Money is not wealth, it is the measurement of wealth. All money does is value the exchange of goods and services—the productive economy—similar to any other basic unit of measurement in the International System…
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Michael Kendall
October 25, 2018
Trump Bashes the Fed Over Rate Hikes The Federal Reserve and the Holy Natural Rate of Interest The Federal Reserve is on a Monty Pythonesque search for the Holy Grail of natural interest rates—the Wicksellian natural rate of interest. As…
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