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some things never change

Blame Gold To Birth Activism; Part 5, History Repeats Because of Alternate Explanations

By |2014-06-16T11:31:53-04:00June 16th, 2014|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

In the 1920’s, it was the interruption of the distribution of gold flows via sterilizations and the creation and maintenance of foreign “reserves” and influencing the nascent wholesale markets of the age that served to maintain a high degree of leverage throughout the economy. That it did not show up in consumer prices is only due to the nature of [...]

Blame Gold To Birth Activism; Part 4, The Great Bottleneck

By |2014-06-16T11:24:35-04:00June 16th, 2014|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

After building up billions of dollars in reserves placed through NYC banks into Street loans, or call money, the crash of ’29 created a profound disturbance in not just stocks but banking. Here too we get little mainstream examination into the link between stocks and the liquidity event that unleashed at least three discrete and successive waves of bank failures; [...]

Blame Gold To Birth Activism; Part 3, The Foreign Element

By |2014-06-16T11:17:05-04:00June 16th, 2014|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

A full part of gold sterilization meant not just maintaining the total level of liquidity (though ignoring the distribution) but also in foreign “reserve” balances. The movements of gold created a trail of foreign exchange “reserves” which central banks around the world were using as tools to affect currency movements contravening of any gold pull or push. It was the [...]

Blame Gold To Birth Activism; Part 2, ‘Surprising’ Texture to Monetary Substitutes

By |2014-06-16T16:45:08-04:00June 16th, 2014|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

The conventional view of asset bubbles is that they are difficult to discern even after the fact. The current policy position is one of bubbles that are “obvious.” Looking back at the late 1920’s, there is no doubt it took a similar track to that seen in the late 1990’s. But that, by itself, does not necessarily denote the presence [...]

Blame Gold To Birth Activism; Part 1, The Setup

By |2014-06-16T11:33:12-04:00June 16th, 2014|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

Looking at the changing pattern of recoveries throughout domestic economic history, it is clear that there is a correlation between the level of monetarist intrusion and the shape of recovery (I would go so far as to claim a causative relationship, but at the very least there is no denying some kind of link). That observation extends to the 1930’s [...]

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