Articles related to Paradox
 
Robert P. Murphy
The Gold Standard Did not Cause the Great Depression
Quarterly Journal of Austrian Economics 19, no. 1 (Spring 2016): 101–111[The Midas Paradox: Financial Markets, Government Policy Shocks, and the Great Depression by Scott Sumner]The Midas Paradox is an impressive piece of scholarship, representing the magnum opus of economist Scott Sumner. What makes the book so unique is Sumner’s use of real-time financial data and press accounts in order to explain not just broad issues—such as, “What caused the Great Depression?”—but to offer commentary on th
Thursday, November 12, 2020
Nathan Lewis - New World Economics
Blame Gold
We have been talking about The Midas Paradox (2015), by Scott Sumner. July 23, 2017: The Midas Paradox (2015), by Scott Sumner. As you probably guessed from the three-word title, the book can be summarized in two words, which are: “blame gold.” This, as we have seen, is actually a relatively new notion, even if it enjoys some popularity today. The general consensus, which later (after 1950) became the Keynesian consensus, did not blame gold, or indeed, monetary policy in general, for the Great D
Friday, July 3, 2020
Gerard Jackson
The "wealth effect" an Austrian view
It is being said that if the fed could just get the ‘wealth effect’ into motion the US economy would fully recover from the recession. But the ‘wealth effect’ is a phantom, the sort of economic fallacy that only a Keynesian could conjure up.  Those who support this fiction argue that a stock market’s performance is driven by a net inflow of funds which in turn is driven by economic growth. They go further by saying that growth in turn is driven by investment, innovation and productivity, all of
Thursday, February 20, 2020
Adam Hamilton - Zealllc
Cheap Gold Stocks Basing
The small contrarian gold-mining sector remains deeply out of favor, universally ignored.  Thus the gold stocks are largely drifting listlessly, totally devoid of excitement.  But that’s the best time to buy low, when few others care.  The gold stocks continue to form strong technical bases, paving the way for massive mean-reversion uplegs.  And they remain exceedingly cheap relative to gold prices, which drive their profits. Being a gold-stock investor feels p
Friday, March 9, 2018
Przemyslaw Radomski CFA - SunshineProfits
Key Change That Nobody Talks About
Last week, everyone focused on the stock market sell-off. Reasonably enough, given the pace of the declines. But the analysts failed to pay enough attention to the very important shift. That change may be more important than Trump’s victory in the presidential election. Will the critical switch make gold shine – or dull? Three Important Legacies of Yellen’s Fed Tenure A crucial change is behind us. Powell is the new boss. Yellen is out. For better or worse, she doesn’t serve as the Fed Chair any
Tuesday, February 13, 2018
Mark O'Byrne - gold.ie
Davos – My Personal Experience of the $100,000 Event, $60 Burgers, Massive Inequality and the Blockchain Revolution 
– Davos elite hear warnings of complacency akin to 2007 as economic risks grow – Toxic mix of infallible belief, arrogance, megalomania and economic ignorance – Some express concern economies are vulnerable due to imbalances, trade, geo-political tensions– Soros: Trump creating ‘mafia state’ & ‘set on a course towards nuclear war’ with N Korea– Bond bear market, rising interest rates and massive $233 trillion debt are some of the many threats to global stability – Davos theme explores massive in
Friday, January 26, 2018
Jesse - Le Cafe Américain
Stocks and Precious Metals Charts - Winding Down -
“Christmas is built upon a beautiful and intentional paradox;  that the birth of someone homeless should be celebrated in every home... The place that the shepherds found was not an academy or an abstract republic, it was not a place of myths allegorised or dissected or explained or explained away.  It was a place of dreams, come true.” G.K. Chesterton Who could have seen this coming, indeed. This is likely to be a quiet trading week with an upwards drift. It was 60 degrees here, and I was
Wednesday, December 20, 2017
Nathan Lewis - New World Economics
Applied Mainline Economics (2017), by Matthew Mitchell and Peter Boettke
Matthew Mitchell and Peter Boettke are academic economists at the Mercatus Center, a think tank associated with George Mason University. I like Mercatus and its work a lot, as it explicitly builds upon and follows the work of people like F.A. Hayek, Adam Smith, and James Buchanan. I don’t follow the academics too closely, but they often have some good insights, so I was looking forward to a book that might summarize some of those insights and let me know where to look for more detail. The idea b
Saturday, December 9, 2017
Keith Weiner - Monetary Metals
The Hyperinflation That Was Not
Last week, we made a very controversial statement. We are happy to write the truth, and let the chips fall where they may (e.g. our thoughtful disagreement with Ted Butler about price manipulation). We can accept the flak that we get for this, so long as our position is understood. Some criticized our approach as mere technical analysis, and therefore insufficient to the task of explaining the dynamics of the gold and silver markets. But whether we quibble with this characterization of our work
Monday, November 27, 2017
Alasdair Macleod - Finance and Eco.
Deflation must be embraced
There are two problems with understanding deflation: it is ill defined, and it has a bad name. This article puts deflation into its proper context. This is an important topic for advocates of gold as money, who will be aware that sound money, in theory, leads to lower prices over time and is often criticised as an objective, because it is not an inflationary stimulation.The simplest definition for deflation is that it is when the quantity of money contracts. This can come about in one or more of
Friday, November 24, 2017
Stewart Dougherty
  Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom 
There are crooks everywhere you look now. The situation is desperate.” Final blog entry by Daphne Caruana Galizia, 53, renowned Maltese investigative reporter who specialized in exposing state corruption; posted on 16 October 2017, one day before she and her vehicle were blown to bits by a car bomb in Bidnija, MaltaIn 2011, gold pulled a “Bitcoin” before anyone even knew what Bitcoin was: its price went vertical to $1,900 per ounce. Inflation-adjusted, the price was still fa
Tuesday, November 7, 2017
Mish - Global Economic Analysis
Scientists Claim to Have Proof that Time Travel Exists
Not much is happening economically speaking this Sunday evening so let’s ponder the ability to travel back in time such that the future can change the past. Please consider Physicists send particles of light into the past, prove time travel is possible. Scientists from the University of Queensland, Australia, have used single particles of light (photons) to simulate quantum particles traveling through time. They showed that one photon can pass through a wormhole and then interact with its olde
Monday, October 9, 2017
Alasdair Macleod - Finance and Eco.
The upcoming increase in interest rates
Last week, both Janet Yellen of the Fed and Mark Carney of the Bank of England prepared financial markets for interest rate increases. The working assumption should be that this was coordinated, and that both the ECB and the Bank of Japan must be considering similar moves.Central banks coordinate their monetary policies as much as possible, which is why we can take the view we are about to embark on a new policy phase of higher interest rates. The intention of this new phase must be to normalise
Friday, October 6, 2017
Mish - Global Economic Analysis
Futility at its Finest: Spanish Court Blocks Catalan Parliament from Declaring Independence; Civil War
What’s the point in telling someone they cannot do something, you know full well they will? Prime minister Mariano Rajoy said there would be no Catalonia independence referendum. He lied. Despite sending in 10,000 troops to stop the referendum, there was a vote and it was 90% in favor of kissing Spain goodbye. On Thursday, the Spanish Court Blocked the Catalan Parliament from Declaring Independence. Wanna bet? Spain’s constitutional court has moved to stop the Catalan government making a unila
Friday, October 6, 2017
Andy Hoffman - Miles Franklin
Fort Knox: “Glad Gold Is Safe!”
Posted on September 28, 2017 by Gary Christenson Secretary of the Treasury Steven Mnuchin visited Fort Knox on August 21. He tweeted “Glad gold is safe!” He told an audience in Louisville, “I assume the gold is still there.” The Fort Knox Gold was last audited in the 1950s. Secretary Mnuchin’s statements were not helpful. Questions: The gold is safe, but where is it? Has most or all Fort Knox gold been shipped to Asia? How much gold is safe? A few bars? Hundreds of bars in a locked and dimly
Thursday, September 28, 2017
Gary Christenson - Sprott Money
Fort Knox: “Glad Gold Is Safe!” - Gary Christenson (28/9/2017)
Secretary of the Treasury Steven Mnuchin visited Fort Knox on August 21. He tweeted “Glad gold is safe!” He told an audience in Louisville, “I assume the gold is still there.” The Fort Knox Gold was last audited in the 1950s. Secretary Mnuchin’s statements were not helpful. Questions: The gold is safe, but where is it? Has most or all Fort Knox gold been shipped to Asia? How much gold is safe? A few bars? Hundreds of bars in a locked and dimly lit room visible only through a small window? W
Thursday, September 28, 2017
Frederic Bastiat
The Existence of Evil
In these last days science has retrograded and been driven back. It has been bent and twisted under the obligation imposed upon it, if I may so speak, of denying the existence of Evil under pain of being convicted of denying the existence of God.Writers whose business it is to display exquisite sensibility, unbounded philanthropy, and unrivaled devotion to religion, have got into the way of saying, “Evil cannot enter into the providential plan. Suffering is no ordinance of God and nature, but co
Tuesday, September 19, 2017
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
Alasdair Macleod - Finance and Eco.
See no evil, speak no evil…
The Jackson Hole speeches of Janet Yellen and Mario Draghi last week were notable for the omission of any comment about the burning issues of the day:...where do the Fed and the ECB respectively think America and the Eurozone are in the central bank induced credit cycle, and therefore, what are the Fed and the ECB going to do with interest rates? And why is it still appropriate for the ECB to be injecting raw money into the Eurozone banks to the tune of $60bn per month, if the great financial cr
Thursday, August 31, 2017
Nathan Lewis - New World Economics
It’s Getting Uncomfortable in the Prices, Interest Money Box
We’ve been talking about The Midas Paradox (2015), by Scott Sumner. July 23, 2017: The Midas Paradox (2015), by Scott Sumner July 31, 2017: The Midas Paradox #2: Blame Gold August 3, 2017: The Midas Paradox #3: It’s So Because I Say It Is August 11, 2017: The Midas Paradox #4: Much Ado About Nothing I’ve mentioned many times the “Prices, Interest, Money Box” that economists got themselves into beginning in the 1870s, and are still in today. The result of this, regarding the Great Depression, is
Friday, August 18, 2017
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