Articles related to Gibson's paradox
Antal E. Fekete - Gold University
Gibson’s Paradox The Gold Price
Sunday, September 6, 2020
Alasdair Macleod - Finance and Eco.
Further thoughts on Gibson’s paradox
“The paradox is one of the most completely established empirical facts in the whole field of quantitative economics.” – John Maynard Keynes“The Gibson paradox remains an empirical phenomenon without a theoretical explanation” -Friedman and Schwartz“No problem in economics has been more hotly debated.” - Irving FisherIntroductionTwo years ago, I found a satisfactory solution to Gibson’s paradox.i The paradox is important, because it demonstrated that between 1750-1930, interest rates in Britain c
Friday, September 8, 2017
Chris Powell - GATA
Stock touting may be a lot easier when 'nobody knows anything'
Mining stock promoter Bob Moriarty, proprietor of and author of the new book "Nobody Knows Anything," was at least speaking for himself the other day when he claimed that central banks care a lot about interest rates but not at all about gold. In commentary headlined "A Zombie Financial System, Black Swans, and a Gold Share Correction" -- -- Moriarty wrote: "As a measure of just how important gold is to the world financia
Monday, August 29, 2016
David Jensen
Detonation of the LBMA - It Wasn't Brexit, Governor Carney
The Governor of the Bank of England Mark Carney has a problem and it is a severe problem. For decades, the Bank of England has acted as a coordinating market-maker for bullion banks in the City of London that trade 'unallocated' or unsecured gold and silver contracts through the London Bullion Market Association (LBMA). The market is uncovering that the Bank of England (BoE) has in effect been facilitating what amounts to a kiting operation in maintaining the structure of the London
Monday, July 4, 2016
David Jensen
Moving to the Post LBMA-Era Gold Price Reset - Watch Out
If one were to describe, in a word, the singular quality of gold that gives it value both as money and a wealth preservation asset, that quality is integrity. Physical gold cannot be printed, it cannot be conjured by a central bank or government official, it cannot be credited into existence by a bank. And over a period of four thousand years, the markets have selected gold and silver as money. The replacement of gold and silver sound money with unstable debt-based fiat paper currenc
Monday, April 11, 2016
Alasdair Macleod - Finance and Eco.
Welcome to the world of ZIRP zombies
Interest rates in the US, Europe and the UK were reduced to close to zero in the wake of the Lehman crisis nearly seven years ago. Initially zero interest rate policy (ZIRP) was a temporary measure to counter the price deflation that immediately followed the crisis, but since then interest rates have been kept suppressed at the zero bound. It had been hoped that the stimulus of close-to-zero interest rates would also guarantee economic recovery. It has failed in this respect and the low bond yie
Thursday, August 13, 2015
David Jensen
The LBMA's Silver Criticality
Discussion to first address some definitions then focus on Silver Market on London's LBMA as it has the greatest disparity of open interest (claims on silver) vs actual available silver to market. 1) Review of some key definitions and data for Listeners Spot contract tr
Friday, January 16, 2015
Chris Powell - GATA
  Chris Powell: Gold market manipulation -- Why, how, and how long 
Most financial journalism and most academic teaching maintain that gold is at best a quaint antique. But gold not only remains money but may again become the best and most important money. Even more than this, gold is in fact the secret knowledge of the financial universe, a secret desperately concealed by central banks.
Wednesday, December 10, 2014
Andy Hoffman - Miles Franklin
  The Essence of Fiat Destruction
I could have gone so many different directions this morning as soooo many scary things are occurring simultaneously.  However, the key theme is what hit me like a “ton of bricks” as I awoke at 3:00 AM – i.e., the “Great Deformation” of economic activity and financial markets caused by fiat currency hyper-inflation.  The catalyst for this revelation was this article by David Stockman, which I read in preparation of discussing the utter collapse of energy prices we warned of two months ago – with
Tuesday, December 9, 2014
Bill Holter - Miles Franklin
“The Debate” …If You Can Call It That
I attended the New Orleans investment conference this past week as the guest of GATA’s Bill Murphy and Chris Powell for which I am highly grateful.  There were many good and thoughtful speakers which I will write about later in the week.  I specifically wanted to attend this conference for 2 reasons, Alan Greenspan (Mr. Magoo) was a keynote speaker and I not so much wanted to hear what he had to say but more importantly “how” he answered audience questions.  This topic is also for later in the w
Monday, October 27, 2014
Przemyslaw Radomski CFA - SunshineProfits
Gold and Real Interest Rate
During the last boom, the gold price was stubbornly rising, but inflation was low. Not surprisingly the relationship between real interest rates (nominal interest rates less inflation) and gold increasingly attracted more and more interest. If gold responds mainly to the real interest rate, it makes its inflation hedge character questionable. This was the opinion of, for example, Paul Krugman, a Nobel Laureate in economics. Krugman claimed that the reason behind the high real price of gold until
Monday, October 20, 2014
Jesse - Le Cafe Américain
The Divergence Between Debt and Gold 
There is little doubt that gold is 'money' in the de facto, if not official, sense. It has been so for at least two thousands years, if not longer. In a policy regime in which the Western central banks wish to quietly devalue their currencies in concert, it would be awkward to allow gold to speak embarrassing truths. I would like to think that now, unlike ten years ago before almost every market was shown to be manipulated and sometimes on a global scale, that a concerted effort to discredit
Friday, September 19, 2014
Andy Hoffman - Miles Franklin
The Lowest Inflation in Five Years!
Lately it feels like “goldbugs” have been forced to endure the trials of a job.  Trust me, no one understands this better than myself, having taken my first job in the mining industry in April 2007, the exact month the TSX-Venture index peaked; and joining Miles Franklin in October 2011, one month after “dollar-priced gold” peaked.  I can go on and on about TPTB’s “point of no return” decision in September 2011, when they realized the only way to avoid instantaneous, systemic implosion was unpre
Thursday, September 11, 2014
David Jensen
The Role of Goldman's J.Aron and Co. Metal Division in Capping Gold
MP3: Interview with Jay Taylor taped September 8, 2014. Topics 1. LBMA GOFO positive with 1 month GOFO at .094% 2. Increasing Shanghai Gold Exchange and Shanghai Metal Exchange physical metals premia vs. LBMA pricing: SGE Gold: $1,267.83 /oz & premium of $ 9.83/oz. = +0.8 % premium vs LBMA vs. +0.2% last week SGE Silver: $21.22 /oz & premium of $2.18 /oz. = +11.4% premium vs LBMA vs. +9.3% last week SME Palladium $1,038.58 /oz & premium of $159.58 /oz. = +18.2%
Thursday, September 11, 2014
David Jensen
China Metal Price Premia and Other Topics
Interview with Jay Taylor taped on July 28, 2014 and posted on July 29. Topics include: 1. China metal price premia for physical metal vs. NY / London virtual metal pricing. Silver : $0.98/ oz or 4.7% premium (Shanghai Gold Exchange) Plat: $84/oz or 5.6% premium (Shanghai Metal Exchange) Pall: $142/oz or 16.1% premium (Shanghai Metal Exchange) Palladium trading for $1,020 /oz in Shanghai vs $878 /oz in London and NY as evidence of physical pricing departing from virtual pricing marke
Wednesday, July 30, 2014
Andy Hoffman - Miles Franklin
Worse Than Libor Rigging 
Yesterday, I spoke of how football playoff tickets are selling for incredibly low prices; here in Denver, at lower prices than opening day.  Unlike mainstream retail chains like Best Buy, Sears and Macy’s, the people that typically buy expensive playoff tickets have above average incomes and savings; and thus, if they are not spending, clearly the rest aren’t either. Amidst non-stop commentary of the widening disparity between “the 1%” and “the 99%,” one might get the impression everyone is eith
Thursday, January 23, 2014
Chris Powell - GATA
Chris Powell: Gold price suppression -- why, how, and how long
Remarks by Chris Powell, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. Louis Boulanger Now Seminar Visitors Center, Holy Trinity Parnell Auckland, New Zealand Sunday, October 13, 2013 Gold Investment Symposium 2013 Luna Park Conference Center, Sydney, Australia Thursday, October 17, 2013 Mines and Money Australia Conference Melbourne Conference and Exhibition Centre Melbourne, Australia Wednesday, October 30, 2013 Most financial journalism and academic teaching maintains that gold is
Wednesday, October 30, 2013
Keith Weiner - Monetary Metals
Theory of Interest and Prices in Paper Currency Part IV 
We are dealing with a cycle. It is not a simple or linear relationship between quantity X and quantity Y, much to the frustration of students of economics (and central planners). The cycle begins when the central bank pushes the rate of interest down, below the rate of marginal time preference. Unlike in the gold standard, under a paper currency, the disenfranchised savers cannot turn to gold. Perhaps it has been made illegal as it was in the U.S. from 1933 to 1975. Or it could merely be taxed and creditors placed under duress to accept repayment in irredeemable paper. Whatever the reason
Thursday, July 18, 2013
Jesse - Le Café Américain
Let's File This Email About Greenspan and Replicating the Gold Standard Under 'Irony'
I found this little gem, and added it to my collection of reminders that Greenspan said that fiat money 'worked' because central bankers had learned to 'replicate' the gold standard through their policy actions.  I had said 'emulate' but perhaps that was a quirk of memory. This is from a publicly published note by Jude Wanniski titled Savings Glut. From: Jude Wanniski < To: Ben.S.Bernanke@ * * * * *.GOV Subject: Fwd: Re: Savings glut 5:44 pm, 7/21/2005 "G
Thursday, May 16, 2013
Rob Kirby - Kirby Analytics
Gold and Interest Rates: More than Joined at the Hip
“Interest rates to remain at zero for the next two years.” Those were the words of Fed Chair - Sir Benjamin of Bernanke last week.With inflation beginning to pick-up – the notion that rates would remain at zero for a prolonged period of time seems “paradoxical” to conventional economic thought.
Friday, August 26, 2011