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Olduvai III: Catacylsm
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Money Velocity and Prices

MONEY VELOCITY AND PRICES The yearly growth rate of US AMS jumped to almost 80% by February 2021 (see chart). Given such massive increase in money supply, it is tempting to suggest that this lays the foundation for an explosive increase in the annual growth of prices of goods and services sometime in the future […]

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A crisis of affordability

A crisis of affordability Western capitalist economies don’t really do shortages.  There are a few stand alone exceptions such as a music festival or a sporting event, where demand so outstrips supply that queues form.  But for the most part – as we saw last week with the eye-watering rise in wholesale gas prices – […]

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Interest Rates Need to Tell the Truth

INTEREST RATES NEED TO TELL THE TRUTH In the middle of July 2018, President Donald Trump said in an interview that he was “not happy” with the Federal Reserve nudging up interest rates and threatening economic growth in the United States. At the recent Jackson Hole, Wyoming, meeting of global central bank leaders, the Federal […]

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Does Subjective Valuation Mean Arbitrary Valuation?

DOES SUBJECTIVE VALUATION MEAN ARBITRARY VALUATION? Why do individuals pay much higher prices for some goods versus other goods? The common reply to this is the law of supply and demand. However, what is behind this law? To provide an answer to this question economists refer to the law of diminishing marginal utility. Mainstream economics […]

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Fed Warns Inflation Has Arrived: Philadelphia, New York Fed Prices Paid Soar

Fed Warns Inflation Has Arrived: Philadelphia, New York Fed Prices Paid Soar Just in case the economic data appeared to be coming in as too hot in recent days, today’s two key regional Fed manufacturing indicators sent conflicting signals, with the New York Fed survey sliding from 17.70 to 13.1, and missing expectations of 17.50, […]

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Supply and Demand in the Gold and Silver Futures Markets

Supply and Demand in the Gold and Silver Futures Markets This article establishes that the price of gold and silver in the futures markets in which cash is the predominant means of settlement is inconsistent with the conditions of supply and demand in the actual physical or current market where physical bullion is bought and sold […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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