…you ask this clarifying question on his blog and you genuinely don’t know what answer to expect:
Thanks Nick. One more from me please. (And I’m not asking these to trap you, I’m asking so I fairly recapitulate what your position is.) If the Fed were to suddenly dump its mortgage-backed securities and replace them with gold, would that have any impact on the real estate and mortgage industries, and the world price of gold, relative to the counterfactual? Again, list any caveats you need.
People often say to me, “Bob, for an economist you’re pretty funny.” No I’m not. It’s just that you have to be a trained economist, to recognize how freaking hilarious economists are.