Stories include: The surprising motives behind inflation, unpacking central bank gold buying figures for 2023, and Turkey is becoming the world's top consumer of gold out of necessity.

If inflation is bad, why do we have an inflation goal?
Egon von Greyerz recently analyzed the state of economic affairs. From gold to climate, a lot of the points he raises are striking, yet not likely to be covered by any mainstream outlet. His discussion of inflation, or rather its source, caught my eye.

We know the Federal Reserve has an inflation target of 2% annually. In recent years, they've missed that target consistently (from 390% over to today's mere 60% over target). Inflation has been so high for so long that even getting back to 2% feels like victory.

von Greyerz addresses the elephant in the room: Why is the inflation rate not 0%? We should also address the most frightening of boogeymen, too… Why is deflation so terrifying?

First, you must understand that a 2% inflation target is a recipe for deliberate, sustained wealth destruction. So you'd think there would be a very compelling reason behind it! Yet when asked this very question recently in a Senate hearing, Fed Chair Jerome Powell said:

The 2% is globally agreed between all major central banks as a target.

When asked how that is beneficial to the people, Powell went on to reveal the true depths of the Federal Reserve's policy:

I will tell you how it does, I guess it is obviously not obvious how that is… To have people believe that it will go back to 2% anchors inflation there.