Geopolitical Economy Report The politics of gold: Economist Michael Hudson explains why gold's price is rising so much
Feb 13, 2025
In this insightful discussion, award-winning economist Michael Hudson shares his expertise on the political dynamics driving the surging price of gold. He explores the complexities behind the US dollar system and how geopolitical tensions are impacting gold's market. Hudson questions traditional views on gold as an inflation hedge, elaborates on central banks' manipulative strategies, and discusses the implications of increased demand for physical gold amidst fears of economic instability. A deep dive into the evolving role of gold in today's financial landscape!
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Dedollarization and Gold
- The US dollar system's exorbitant privilege allows unlimited money printing, unlike other nations.
- De-dollarization pressures rise as countries seek alternatives like gold amidst US sanctions.
Gold's Strange Market Behavior
- Gold demand has outstripped supply for decades, yet the price stagnated until recently.
- This unusual market behavior, unlike typical commodities, raises questions about manipulation.
Gold and Geopolitics
- Gold isn't solely an inflation hedge; it's tied to the US balance of payments deficit.
- Central banks buy US treasuries to manage exchange rates, creating a political dimension.
