It´s ironic, while the capitalist Western Word is embracing Keynesian economics (more debt, more money printing, more government...), the two former socialist centers, China and Russia, are approaching Austrian economics. We saw evidence of the above from Russia recently with Putin’s appointment of Elvira Nabiullina as the new head of the
Russian Central Bank, or from China letting soar their interest rate. Besides, both countries, known for their trade surpluses, have major concerns about the crazy policy USA, UE, UK, and Japan are following related to their currencies. This is the reason they are very heavily increasing their gold reserves. They are buying almost all available physical gold. They might want to feel prepared for a collapse in the monetary system.
Returning to Ms Nabiullina, she is on record admiring the writings of
Robert Higgs – a leading US economist of the Austrian School. Higgs is a Senior Fellow in Political Economy for The Independent Institute and a frequent contributor to Mises.org, known by its anti-interventionist ideas. Therefore, she is likely to take a strong attitude against credit expansion and to continue the purchase of gold as reserves.
