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Tag Archives: Alasdair Macleod

“Fiat Money Quantity” & $11,000 Gold

It is time to revisit the Fiat Money Quantity (FMQ), which totals US dollar money deposited in the banking system, the commercial banks’ money on deposit at the Fed and physical cash. Besides alerting us to how the expansion of fiat money is progressing, an objective of this exercise is to give some guidance on the price relationship with gold. It is particularly appropriate at a time when banking analysts have turned generally bearish, believing that the rally in gold is now over. The idea behind FMQ is to define the quantity of fiat money, which can then be compared …

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