Austrian Economics, Gold, and the Fed’s Confidence Game
Mark Thornton explains why Austrian economics matters, and why gold, debt, the Fed, and the dollar all point back to the same problem: government money.
Source: Mises Institute
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DW NOTE
The Mises Institute is explaining Austrian business cycle theory at the exact moment the Fed is financing a $1.9 trillion deficit while pretending it's fighting inflation. The Fed kept rates flat through August because inflation hasn't fallen to 2% — meaning the real priority is rolling government debt, not price stability. Gold rallied 6.77% this week to $4,677 because markets understand what the Fed won't say: when you're monetising 6% of GDP annually, the confidence game has an expiration date.