Classical Economics in a Quantum World
The Fed unleashed a coming market inflection with the onset of normalization. In our global fiat system, as long as the dollar remains the world’s reserve currency, the Fed forces global central banks to adopt its policy. A Fed balance…
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On October 2, 2017, Market Memo: Normalization, Tax Cuts, Geopolitical and Gold, I wrote: What this means is that the price of gold (POG) will continue to adhere to the Kendall Rule. The initial steps of normalization, tax cuts, and…
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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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The market is still applying the Fed’s old operating rules when pricing gold. Funds rate hikes in the era of massive excess reserves and a bloated Fed balance sheet offer buying opportunities in gold. The general misconception is that funds…
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