President Trump recently called the Federal Reserve's interest rate hikes crazy.
A main value of a precious metal is it accurately conveys the true price of money, which is the Interest rate.
In contrast to market money, government-created fiat currency is anything but stable.
Central banks constantly increase and decrease the money supply in an attempt to control the economy by controlling the interest rates.
When central banks create money, those who first get the new money enjoy an increase in purchasing power before the new money causes a real increase in prices.
The very act of creating money and manipulating interest rates distorts the market.
The Federal Reserve System cannot be fixed with a "Rules-based" monetary policy or even with "Tying" the Fed-created money supply to the price of gold.
https://www.newsmax.com/ronpaul/audit-congress-currency-fiat/2018/10/29/id/888493/
A main value of a precious metal is it accurately conveys the true price of money, which is the Interest rate.
In contrast to market money, government-created fiat currency is anything but stable.
Central banks constantly increase and decrease the money supply in an attempt to control the economy by controlling the interest rates.
When central banks create money, those who first get the new money enjoy an increase in purchasing power before the new money causes a real increase in prices.
The very act of creating money and manipulating interest rates distorts the market.
The Federal Reserve System cannot be fixed with a "Rules-based" monetary policy or even with "Tying" the Fed-created money supply to the price of gold.
https://www.newsmax.com/ronpaul/audit-congress-currency-fiat/2018/10/29/id/888493/
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