{"id":64701,"date":"2023-01-12T07:31:58","date_gmt":"2023-01-12T12:31:58","guid":{"rendered":"https:\/\/olduvai.ca\/?p=64701"},"modified":"2023-01-12T07:31:58","modified_gmt":"2023-01-12T12:31:58","slug":"zoltan-pozsar-the-four-prices-of-money-and-the-coming-gold-bull-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=64701","title":{"rendered":"Zoltan Pozsar, the Four Prices of Money, and the Coming Gold Bull Market"},"content":{"rendered":"

Zoltan Pozsar, the Four Prices of Money, and the Coming Gold Bull Market<\/a><\/h3>\n
\n
\n

Over the past 100 years there has been a correlation between major equity bear markets, adjustments in one of the four \u201cprices of money,\u201d and gold bull markets. If we let history be our guide, the current equity bear market is signaling a new gold bull market, supported by changes in the price of money.<\/p>\n

\"goldWith equities in a bear market, and the Fed adjusting the price of money, we can expect a gold bull market in the coming years.<\/em><\/span><\/p>\n<\/div>\n

One of the more intriguing financial analysts of our times is\u00a0Zoltan Pozsar<\/a>, Managing Director and Global Head of Short-Term Interest Rate Strategy at Credit Suisse. In his writings of the past months, one of the things that caught my attention was his framework for multiple prices of money. Remarkably, when I looked up big historical changes in the price of the US dollar, they usually succeeded equity bear markets and introduced gold bull markets. Because equities are in a bear market as we speak, we can\u00a0expect a gold bull market in the years ahead<\/a>, enabled by the Federal Reserve changing the price of money.<\/p>\n

First, let\u2019s see how changes in the price of the dollar have caused gold bull markets in the past 100 years. Then we will add the stock market.<\/p>\n

The Four Prices of Money and Previous Gold Bull Markets<\/strong><\/p>\n

Pozsar\u2019s money framework, which he got from his intellectual mentor Perry Mehrling, states money has four prices:<\/p>\n

1)\u00a0Par<\/em>, which is the price of different types of the same money. Cash, bank deposits, and money fund shares should always trade at a one-to-one ratio.
\n2)\u00a0Interest rates<\/em>, which is the price of future money.<\/p>\n

\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Zoltan Pozsar, the Four Prices of Money, and the Coming Gold Bull Market Over the past 100 years there has been a correlation between major equity bear markets, adjustments in one of the four \u201cprices of money,\u201d and gold bull markets. If we let history be our guide, the current equity bear market is signaling […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1750,5186,32801,374,27826],"class_list":["post-64701","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bear-market","tag-bull-market","tag-gainsville-coins","tag-gold","tag-jan-nieuwenhuijs"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64701"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64701\/revisions"}],"predecessor-version":[{"id":64702,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64701\/revisions\/64702"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}