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Professor Antal E. Fekete is a renowned mathematician and monetary scientist. This site will illuminate some of his important ideas in the areas of:
- Fiscal and Monetary Reform
- Gold Standard University
- Real Bills Doctrine
- Basis
- Discount versus Interest
- Gold and Interest
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In 1974 Professor Fekete delivered a talk on gold in Paul Volker’s seminar at Princeton University. Later, Professor Fekete was Visiting Fellow at the American Institute for Economic Research and Senior Editor for The American Economic Foundation. In 1996 his essay, Whither Gold?, was awarded first prize in the international currency essay contest sponsored by Bank Lips, the Swiss bank.
For many years an expert on central bank bullion sales and hedging, and their effects on the gold price and the gold mining industry itself, he now devotes his time to writing and lecturing on fiscal and monetary reform with special regard to the role of gold and silver in the monetary system.
At this moment, when the world’s monetary system appears increasingly shaky, Prof Fekete details why the current paradigm is flawed and how the problems must be dealt with. This is almost taboo in the main stream financial media. Prof Fekete explains it as a gold crisis, not a dollar crisis. Those who doubt it would do well to recall that every fiat* money system ever tried – and history is littered with examples – failed.
* Money that is not backed by, or convertible to, any specific commodity and whose only value is that determined by government.
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A paper presented at the Santa Colomba Conference on the International Monetary System at the Palazzo Mundell, July 2009. The Obama Administration has raised the ante in combatting the recession by increasing the debt of the government to levels that were previously considered unthinkable. It is explaining away the weakening financial structure of the country by saying that aggregate debt has not increased much relative to GDP and is therefore not excessive.
This argument is false to the core. One cannot take comfort in past increases of GDP to justify future increases of debt. The fact is that the increase in debt has been the major motive power behind the increase in GDP and prices. It cannot, therefore, be tested by its own results. The real test is the burden of debt. The economic advisers of president Obama forget that the GDP and prices may well decline, but the debt remains fixed. This means that, given the decline, even without further increases in aggregate debt the financial structure will deteriorate. How much more must it then deteriorate when all caution concerning the threat from excessive debt is thrown to the winds!  |
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A paper presented at the Santa Colomba Conference on the International Monetary System at the Palazzo Mundell, July 2009. The gold basis is defined as the difference between the nearby futures price and the cash price of gold in the same location. A positive basis is called contango; a negative one, backwardation. Since there were no organized futures markets in gold prior to 1971, the history of gold basis is confined to the last 35 or so years.
Gold futures trading started on the Winnipeg Commodity Exchange in Canada in 1971 at a time when ownership and trading of gold was still illegal in the United States. Upon becoming legal the bulk of gold futures trading moved to New York and Chicago.
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Professor Fekete’s astute observations cut through the hubris of both John Maynard Keynes and Milton Friedman. Understanding that producers and savers, not governments and markets, are the lifeblood of functioning free economies, Professor Fekete once again places human endeavor squarely in the center of modern economic theory. - Darryl Robert Schoon, Author (www.drschoon.com)
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Copyright, © 2007 SCHOONWORKS
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