Classical Economics in a Quantum World
The price of gold (POG) is the inverse of the value of a country’s currency. Changes in the POG reflect changes in a currency’s value, not in gold’s value which is stable. If gold supply and demand determined the POG,…
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There is a very good article from ZeroHedge on the coming Treasury debt issuance resulting from the Covid-19 government-imposed shutdown. Goldman Spots a Huge Problem for the Fed. ZH is obviously well connected to the inner workings at Treasury and the…
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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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Free Banking and Cryptocurrency is next in my series of looking at the problem and solution for cryptocurrency. Previously in the series is The Protocol Layer and Cryptocurrency and Market Valuation II. The U.S. Free Banking Era It is not…
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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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Judy Shelton is Trump’s nomination to the Federal Reserve Board. She is a long-time advocate of a gold standard and has written two books on the subject, Money Meltdown and Fixing the Dollar Now. She is a threat to…
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Returning to a Gold Standard and Gold Equilibrium looked at the relationship between the optimum price of gold (the price level) and the spot price of gold (POG). A return to a gold standard, without the induced economic stress of…
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Why the U.S. could return to a gold standard at $1300/oz without risk of inflation or deflation There are two prices of gold. There is the market spot price of gold (POG) and an optimum POG which represents the price…
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Trump’s nomination of Steve Moore and Herman Cain to Fed Board positions has shaken up the Fed establishment. Moore is advocating a CRB (commodities) Index target while Cain has written in favor of a gold standard. A gold standard or…
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The Fed creates money based on a monetary standard. Think of a monetary standard as the Fed’s carburetor that regulates how much liquidity gets injected into the economic engine. To maintain a standard requires adjusting base money supply to hit a specific…
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