A Trapped Fed
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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Author Archive: Michael Kendall
Market Indices and Gold
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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The Basics of Money
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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Trump vs the Fed
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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Kendall Rule Revisited
Yellen’s Inadvertent Gold Standard Nathan Lewis posted an excellent piece on Forbes about gold’s correlation with the dollar during Yellen’s tenure as Fed Chair. Lewis asks the question, “have we effectively recreated the Bretton Woods gold standard system?” Bretton Woods linked…
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The Wisdom of the Electorate
The first rule to understanding elections is the wisdom of the electorate. The electorate is always right. That is why democracy works. The population in aggregate is far wiser than any elite few. Political systems have evolved in a trial-and-error…
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More Thoughts on Gold
A ratio of two ratios determines the dollar price of gold. Dollar supply (base money) ———————————— Dollar demand (base money) ——————————————————– …
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George Gilder: Life After Google – Book Review
In his prophetic 1990 book, Life After Television, George Gilder predicted: The computer of the future would be as portable as your watch and as personal as your wallet. It would recognize speech and navigate streets, collect your mail and your…
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Notes on The Bitcoin Standard II
George Gilder sent me a pre-publication draft of The Bitcoin Standard by Saifedean Ammous. We exchanged many emails on the topic of Bitcoin and cryptocurrency. This is Part II of my reply to George after reviewing The Bitcoin Standard. *…
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Notes on The Bitcoin Standard
George Gilder’s new book, Life After Google, is out today. In October 2017 George sent me a draft of Saifedean Ammous’ book, The Bitcoin Standard. I was excited to read Saifedean’s draft because Bitcoin offers tremendous promise. I quickly realized that…
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