Don’t give up your gold: disciplined monetary policy can’t fix fiscal risk - Axel Merk - KITCO
Don’t give up your gold: disciplined monetary policy can’t fix fiscal risk - Axel Merk - KITCO
Source: KITCO
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DW NOTE
Merk's right that central banks can't sterilise fiscal incontinence, but the gold prescription misses the mechanism. When governments run 6% deficits in expansion — as the U.S. is now — monetary discipline just means higher sovereign borrowing costs, not fiscal restraint. The Fed hiked last week for the first time since 2023 while Congress keeps spending. Gold won't save you from that; it'll just make you feel prudent while the currency degrades around you.