Classical Economics in a Quantum World
Duration of Debt and The Inflation Reference All inflations, everywhere, are preceded by a rise in the price of gold in that country’s currency. –Alan Reynolds This is an iron law. However, there must be a reference point from…
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Fed Balance Sheet Analysis Analyzing the Fed’s April 30 H.4.1 $6.6 trillion balance sheet requires more nuance than just observing its rapid, unprecedented increase since the start of the government imposed Covid-19 economic contraction. Change in Fed balance sheet from Jan 02,…
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Money is stable in value on a gold standard. That’s all a gold standard does. It links a currency to gold, and that currency achieves gold’s historical stability of value. Stable value eliminates inflation and deflation. It’s why Great Britain…
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Gold has been money for thousands of years. Gold standards emerged in the late 1600s, and for 300 years major economies of the world were on a gold standard of some form. What is interesting is that there is no…
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The Normal “The normal” was Fed operating policy from 1913 – 2008. The Fed had direct control of the supply of base money and the ability to match it to demand. By direct control I mean when the Fed created…
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How Economic Policy Influences War As noted in Part I, Hue 1968 – War and Economics, Bowden gives a historical overview of Vietnam and its geopolitical role. Ho Chi Minh initially made positive overtures toward the U.S. at the end of…
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The Battle of Hue Mark Bowden has written an amazingly detailed account of the Battle of Hue. The battle occurred during the Vietnam War Tet Offensive of 1968. His publisher Morgan Entrekin, who convinced Bowden to write the book, saw…
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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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Inflation and deflation are a basic component of economics. Yet, the Federal Reserve, which has monopoly control of the value of the dollar, admits that they “aren’t sure they understand how inflation works anymore.” That a currency must be stable…
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Craig Wright, the Australian mathematician and serial academic credential achiever, is widely associated as Satoshi Nakamoto. Andrew O’Hagan wrote The Satoshi Affair, a long account of the events leading up to Wright’s public failure to prove he is Satoshi. Wright…
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