SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Welcome to Slider's Dugout
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: SliderOnTheBlack who wrote (3296)11/3/2006 6:07:04 PM
From: Nihontochicken   of 50698
 
Historically, the main driver of $Gold had to do with Gibson's Paradox, that interest rates did not correlate well to the rate of inflation, as one would reasonably expect, but instead they correlated positively with the general wholesale price level, From a Google:
............................

Gibson's Paradox

An economic observation made by J. M. Keynes during the period of the gold standard that there is a correlation between interest rates and the general price level. Keynes' finding, which he discusses in "A Treatise on Money" (1930), is a paradox because it is contrary to the view generally held by economists at the time, which was that interest rates are correlated to the rate of inflation.

Investopedia Says: In Keynes' research, interest rates were highly correlated to wholesale prices but had little correlation to the rate of inflation. In this paradox interest rates movements are connected to the level of prices not the rate of change in prices.
.............................

Larry Summers tried to explain Gibson's Paradox via the role played by the POG:

gold-eagle.com

Gibson's Paradox correlation seems to have broken down in recent times, many think due to Gubmint intervention and subversion of the free markets and the POG in particular. Will the Paradox someday re-assert itself with a vengeance?

NC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News