Classical Economics in a Quantum World
Cryptocurrency is money, not a rare artifact of speculative value. Decentralized issuance beyond the control of government or central banks is the essential tenet and attraction of cryptocurrency. The immutable, public ledger blockchain provides the foundation for peer-to-peer commerce in…
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Nathan Lewis has written the third in a series of books about gold. Gold is innately understood by all, but theoretical knowledge has wandered in the economics wilderness for nearly a century. I call this the Gold Paradox. Academia and…
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Money has three roles; a medium of exchange, store of value, and unit of account. A unit of account is the most important role of money and the least understood. A unit of account is a monetary standard of reference. …
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The Coinage Act of 1792 established the dollar defined at a fixed weight of gold (and silver until 1900). This was the case in the U.S. from 1792 until 1973. The U.S. was on a gold standard during this period. …
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The primary utility of any currency is as a unit of account. Its other roles are a store of value and medium of exchange. The unit of account is a monetary standard of measure. It is a reference upon which…
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Despite ample evidence that we have entered a new monetary normal defined by the advent of negative interest rates and stagnated growth, few understand the implications of massive excess reserves on Fed policy. Trump’s potential tax cuts are being equated…
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Global reserves preference in fiat U.S. dollars or gold The Nikkei Asian Review reported a global financial bombshell on September 1, 2017. “China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into…
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One way to look at central bank normalization is to envision optimum monetary and fiscal policy and work backward to what is actually possible. Optimum policy is the magic formula of stable money and low taxes. Stable money and low…
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The old rules for evaluating market performance no longer apply. From 1973 to 2008 one could predict market performance based on understanding the gold signal, how fiscal and geopolitical policy affected the supply and demand for base money, and how…
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The economic term normalization has entered the financial lexicon and will soon dominate markets. As with everything the Fed has done since Nixon ended dollar stability by severing its link to gold in 1971, the advent of normalization is just…
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