Alasdair Macleod

Central Banks

The end-point in financial credit

06/11/2015(0)
Since the 1980s, markets have had to adapt to a world of infinite credit. Of course, this credit has not been available to everyone: it has been principally deployed ... Read More
Fiat Money Quantity

Fiat money quantity update

30/10/2015(0)
After a few months of slower growth, FMQ has picked up again. FMQ is the sum of True Money Supply (as defined by the Austrian School of Economics), plus ... Read More
silver

Silver as money

16/10/2015(0)
Gold is money, admittedly not often circulating as such today. Fiat currencies issued by governments have driven gold out of circulation. But where does this leave silver? Money-substitutes, bank ... Read More
dollar-yuan

China and the dollar

09/10/2015(0)
With the benefit of hindsight, the two-day devaluation of the yuan in mid-August might have been a masterstroke of strategy. China executed a financial move that appeared to undermine ... Read More
interest rates

NIRP, its likelihood and effect on commodities

05/10/2015(0)
In last week’s article I pointed out that negative interest rates should lead to a general shift in consumer preferences from money towards essential goods. Central bankers may wish ... Read More
interest-rates

From ZIRP to NIRP

25/09/2015(0)
The sudden end of the Fed’s ambition to raise interest rates above the zero bound, coupled with the FOMC’s minutes, which expressed concerns about emerging market economies, has got ... Read More
gold-2

Gold remains money

18/09/2015(0)
We think we know that gold is no longer money, because Keynesians and monetarists insist it is so. Furthermore, it has been replaced by government currencies, which we use ... Read More
currencies

Equity markets and credit contraction

11/09/2015(0)
There is one class of money that is constantly being created and destroyed, and that is bank credit. Bank credit is created when a bank lends money to a ... Read More
dollars

The danger of eliminating cash

04/09/2015(0)
In the early days of central banking, one primary objective of the new system was to take ownership of the public’s gold, so that in a crisis the public ... Read More
Japan-stock-market--007

Economics of a crash

31/08/2015(0)
This month has seen something that happens not very often: it appears to be the early stages of a global stock market crash. For the moment investors are in ... Read More
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