Goldbugs and Deflation



Via Kevin Drum, a good Politico piece on right-wing pundits paid to hawk nonsense investments in gold.

Kevin Drum treats this as a bit of a joke, but I worry that it’s actually having an impact in terms of helping to foster a political climate that’s hostile to an appropriately expansionary monetary policy. A big part of the gold sales pitch is to do a lot of nonsense fearmongering about the state of monetary policy in America being too lax. These gold hucksters have helped create a political context in which instead of the right calling for less fiscal policy and more monetary policy, they’re calling for less fiscal policy and less monetary policy. That’s not the only reason the Fed isn’t doing more—they are “independent” after all—but it’s not helping.