The New New Normal
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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Tag Archive: Bernanke
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…
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How the Fed Works
The complement to understanding the dollar price of gold is understanding how the Fed works. Google “how the Fed works” and you won’t find much. Most is bland repetition from federalreserve.gov to satisfy the bureaucratic requirement of a quasi government…
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Danielle DiMartino Booth: Fed Up – Book Review
The PhD Scourge Danielle DiMartino Booth has written a timely book about the Fed, Fed Up, An Insider’s Take on Why the Federal Reserve is Bad for America. Fed Up deconstructs the Fed from the lofty pedestal upon which conventional wisdom has…
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Excess Reserves
Massive, long-term excess reserves are the anomaly that resulted from deviation of historic Fed monetary policy that began in 2008. From 1913 to 1971 the Fed targeted a dollar fixed weight of gold to determine the economy’s required base money,…
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Fed Rate Hikes
Fed Operating Targets The latest round of will-the-Fed-or-won’t-the-Fed-finally-hike-rates has passed. The world waited breathlessly for the Federal Reserve to announce their latest FOMC decision. Once again, the Fed punted on announcing another measly .25% funds rate hike and averted the…
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