Daily Archives: 07/13/2019

“Abandon The PhD Standard” – Jim Grant Urges The Fed To “Use A Golden Rule”

As global economic policy uncertainty has skyrocketed this year, gold prices have accelerated dramatically reflecting their value, as Kyle Bass put so eloquently, as a “hedge against the idiocy of the political cycle.”

And, indeed, one look at the chart below – showing almost $13 trillion of negative-yielding debt globally – suggests the “idiocy” is as great as it has ever been as Einsteinian insanity continues to build as central bankers world-wide double-down on more of what hasn’t worked to build a recovery that is sustainable without the global liquidity spigot being wide open.