More Thoughts on Gold
A ratio of two ratios determines the dollar price of gold. Dollar supply (base money) ———————————— Dollar demand (base money) ——————————————————– …
Read more
Understanding Gold
Today’s Gold Price
Since the September 2011 decline in the price of gold from $1900 to $1050, gold watchers continue to suffer from post-traumatic gold decline syndrome, PTGDS. If the POG can fall from $1900 to $1050, it can just as easily fall from…
Read more
Kashkari’s Head-Scratching Tweet
Academia has abandoned any serious interest in understanding a gold standard. Going back to Amsterdam in the late 1600s, there is a 300-year history of successful implementation of gold standards among developed countries. Data is available to study the result of…
Read more
Returning to a Gold Standard
To understand gold requires first recognizing its proper orientation. Gold is unlike any other commodity, good, or service. Its value does not change. Its overwhelming purpose is as a monetary proxy. When viewing the monetary world, gold is at the…
Read more
Gold Industry Analysis
The misunderstanding of gold and the perpetuation of gold fallacies by academics, economists, and PhDs is easily explainable. Gold is the kryptonite to their errant economic theory. Gold signals the continuous error of the floating fiat PhD standard. Economists have to dismiss gold…
Read more
Kendall Rule Update
“As long as excess reserves persist, with IOR, in amounts necessary to facilitate Federal Reserve control of the price of interest, the trend for the minimum price of gold is determinative by its average price over the duration of debt.”…
Read more
Money, Commodities, and Bitcoin
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. …
Read more
The Case for Repeal of Federal Taxation on Gold
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. …
Read more
China, Gold, and the Dollar
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…
Read more
The Kendall Rule
“As long as excess reserves persist, with IOR, in amounts necessary to facilitate Federal Reserve control of the price of interest, the trend for the minimum price of gold is determinative by its average price over the duration of debt.”…
Read more