This one is really confusing. Some European Central Bank official with a severe shortage of vowels in his name, Yves Mersch, warned that the ECB could buy stocks, ETF’s, and…gold. Why? In order to boost inflation. What the hell does that even mean? Does anyone have a clue?
Usually the zany things that central bankers say at least make sense within their own economic misconceptions and they are at least consistently wrong on the same things because they all hold the same false doctrines. But this is something new. How in anyone’s mind does buying gold boost inflation? Someone should check if he was drunk or high during his speech because it sure sounds like it.
Hey, if he wants to buy gold, fine by me. But inflation by definition is money unbacked by specie. If you buy specie you are backing your money, not inflating it.
Could it be that God is starting to put strange thoughts in these banker’s heads in preparation for what’s to come? Who knows, but that is the weirdest thing I’ve heard come out of a central banker’s mouth in a long time.
Considering the fact that the Swiss National Bank is fighting tooth and nail against the Swiss electorate NOT to buy gold ahead of the Swiss Gold Initiative referendum on November 30 precisely because buying gold would force them to stop inflating, if the ECB cleared his speech and this is actually the ECB’s plan, it really makes no sense, not even within the twisted logic of the ECB’s own Keynesian system.
Something really weird is going on here.