ECB - gold is a bit of a problem

Investment Analysis Clubs Macro Economic Trends and Risks
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Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

So, why are they printing it to oblivion?

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I don’t know about the ECB. In the U.S. Congress writes laws that control the fiscal imbalance – spending on government programs and taxation. The Federal Reserve controls the money supply using a variety of methods. Only during crisis does the Fed act as a lender of last resort (e.g. QE during the 2008 financial crisis and 2020 Covid crisis). The fiscal deficits are financed by sale of Treasuries (government debt).

History is filled with examples of governments that overspent their incomes to the point of self-destruction.
Wendy

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emphasized text[quote=“WendyBG, post:3, topic:118630”]
History is filled with examples of governments that overspent their incomes to the point of self-destruction.
[/quote]

Not just governments, but every aspect of humanity since we agglomerated from “bands” where each individual knew all the others, into tribes where scams and group delusions could be pulled off.

For “goverments” and “incomes” substitute
spouses and trust
business executives and capital, both current and reasonably expected
charismatic leaders and soldiers
.
.
.
Humans are extremely dangerous and nasty when their social norms fail to stop delusions of all sorts. With our recent huge and rapid changes in our technologies of information exchanges we are at the mercy of our own minds and of every huckster capable of raising a voice.

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The surge in gold prices since 2023 reflects its role as a safe haven amid heightened geopolitical risks and economic policy uncertainty, particularly following the 2024 US presidential election and April 2025 tariff announcements. Investors and central banks, especially from emerging markets, are increasing gold purchases to hedge against inflation and potential currency devaluation driven by excessive money supply growth, often referred to as “printing to oblivion.” Gold’s appeal lies in its limited, inelastic supply and lack of counterparty risk, making it a reliable store of value. This demand is evident in the COMEX futures market, where physical gold delivery notices hit a peak in January 2025, signaling investor preference for tangible assets amid fears of trade disruptions and currency instability.

Blockquote
So, why are they printing it to oblivion?

https://www.ecb.europa.eu/press/financial-stability-publications/fsr/focus/2025/html/ecb.fsrbox202505_02~7f616fcd3f.en.html

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But we could raise taxes and grow our industrial base.

Oh I forgot that is a nonstarter.

Just moseying along the tariffs are off. What to do what to do? Raise taxes? No way! Way?