Axel Merk

Founder Merk Investments. USD ~4bn in gold & miners. Weekend rancher. tweets ≠ advice

[Axel Merk @AxelMerk]

In 1971, Nixon "temporarily" closed gold window.

In 2008, central banks "temporarily" went into crisis mode.

I'm temporarily skeptical it will all end well.

[Axel Merk @AxelMerk]

In "Why I Am Not a Conservative" -- first published in 1960 -- FA Hayek explains why society is so divided today and has a path forward.

A worthy Sunday read: https://t.co/uSKOXKjwaT

[Axel Merk @AxelMerk]

FA Hayek in 1960 discusses why society is so divided today. In "Why I am not a Conservative" he delineates classical liberalism from conservatism. Get ready to be offended.
The conservative resists change, gets pulled in the direction of the socialist.
https://t.co/uSKOXKjwaT

[Axel Merk @AxelMerk]

You get a risk profile assigned at birth - if one wants to make special arrangements for 'pre-existing conditions', this is the time to do it. Then you are responsible for carrying your insurance and adjustments are made based on age, not based on what diseases you develop. If you make lifestyle choices that warrant a higher premium, say smoking, we can discuss whether that's permissible. But what is not right is that you get evaluated each year and if you happen to have gotten sick, your rates skyrocket - that defies the purpose of insurance.
In such a system, you can shop for insurance, you shop with a standardized risk profile based on your age and any other permissible parameters.
If you fail to keep up your insurance, then it's a different story - you get re-evaluated.
But the point of insurance is that if you do everything you are supposed to do, you have *insurance* not some sort of pre-payment system where the counterparty will only engage if they make a profit with you as an individual -- that's not insurance.

[Axel Merk @AxelMerk]

What is insurance?
IMHO insurance is to cover potential expenses one does not want to or cannot afford to pay outright.
Weight loss drugs have health benefits, but appear to be a long-term lifestyle choice. Corporate coverage is a benefit, not insurance.
https://t.co/az4dqHaqxh

[Axel Merk @AxelMerk]

FWIW, I've often wondered why it is that I get along from folks from across the political spectrum more than my peers. Hayek has the answer: the classical liberal deems government necessary; strives to minimize government coercion; and is tolerant of different schools of thought. I can relate to that.

[Axel Merk @AxelMerk]

Read FA Hayek's complete essay of 'Why I am not a Conservative' - it's a Sunday read well spent. https://t.co/uSKOXKjwaT

[Axel Merk @AxelMerk]

The essay is an appendix to Hayek's "Constitution of Liberty" - I recently read it again, not realizing how much I had missed when I first read it. It's incredibly timely.

[Axel Merk @AxelMerk]

(classical) liberalism: belief in the power of ideas
conservatives: claim to superior wisdom basedon some self-arrogated superior quality

[Axel Merk @AxelMerk]

Conservative opposition to too much government control is not a matter of principle...conservatives are usually protectionist and have frequently supported socialist measures in agriculture"

[Axel Merk @AxelMerk]

Conservatives: there are superior persons
Classical liberals: there are, but no one has authority to decide who these superior persons are

[Axel Merk @AxelMerk]

He doubles down: the conservative is okay with the use of power as long as it is for the right purposes. "essentially opportunist and lacks principles"

[Axel Merk @AxelMerk]

"to the (classical) liberal neither moral nor religious ideals are proper objects of coercion, while both conservatives and socialists recognize no such limits.

[Axel Merk @AxelMerk]

Maybe the most important section, Hayek writes: peaceful society in which different sets of values coexist requires principles that enable one to tolerate what we dislike.
https://t.co/jjB7MHFaIv

[Axel Merk @AxelMerk]

The conservative has fondness for authority but lacks principles.

[Axel Merk @AxelMerk]

The conservative feels safe and content only if one of theirs is in charge to ensure change is 'orderly'

[Axel Merk @AxelMerk]

Importantly, the conservative is inclinded to use power of goverment to prvent change, lacks faith in the spontaneous forces of adjustment which makes the (classical) liberal accept changes without apprehension.

[Axel Merk @AxelMerk]

The conservative favors free growth when it comes to the past only.

[Axel Merk @AxelMerk]

FA Hayek in 1960 discusses why society is so divided today. In "Why I am not a Conservative" he delineates classical liberalism from conservatism. Get ready to be offended.
The conservative resists change, gets pulled in the direction of the socialist.
https://t.co/uSKOXKjwaT

[Axel Merk @AxelMerk]

In the excerpts below, liberalism always refers to classical liberalism. Hayek argues liberalism cherishes established institutions for the ideals they represent; the conservative because they are an effective instrument of power.

[Axel Merk @AxelMerk]

Yearly renewal for health insurance works when companies own it that have many employees as the risk is spread. But it shows how perverse the system is.

We need to get incentives into the system that work. The odds of that happening? You tell me.

[Axel Merk @AxelMerk]

The fix is that you own your own health insurance. You should not need to re-apply each each for health insurance - if you pay your dues, you carry it forward - that's the point of insurance. If the insurer re-evaluates you each year, what's the point?