Gibson’s paradox: the consequences
We now have an explanation for Gibson’s paradox (posted here), a puzzle that has defeated mainstream economists from Fisher to Keynes and Friedman. The…
GoldMoney white paper: Gibson’s paradox resolved
A new white paper resolving Gibson’s paradox is posted on GoldMoney’s site, here: https://www.goldmoney.com/images/media/Files/GMYF/Gibsons%20Paradox.pdf The full ramifications will take further analysis and thinking, but…
China’s 1929 moment
Anyone with a nose for markets will tell you that the Chinese government’s attempt to rescue the country’s stock markets from collapse is far…
Gold and Gibson’s Paradox
There is a myth prevalent today that the gold price always falls when interest rates rise. The logic is that when interest rates rise…
Credit deflation and gold
There is a common view in financial markets that credit deflation is bad for gold prices, because gold nowadays is regarded as an asset…
Productivity misconceptions
In the media warm-up for Wednesday’s UK budget, we were told of Britain’s poor productivity and Chancellor Osborne subsequently confirmed that his priority is…
Greece’s referendum
This coming Sunday Greece will hold its referendum. The question to be asked is not, as the foreign press initially reported it, about leaving…
The euro crisis
Make no mistake; the Greek crisis is a euro crisis that threatens the solvency of the ECB itself, and therefore confidence in the currency….
Managing trade deficits
Currency devaluation is seen by nearly every macro-economist to be the cure for trade deficits. Recently they have recommended it to Greece, arguing for…
Bonds and banks
This year has seen some big losses develop in the bond markets, though prices have stabilised in recent days. The chart above is of…