Rate Hikes And Oil Shocks: Why Central Banks Are Buying Gold

Felix Nikolas Prehn's Podcast · Oct 10, 2026 · 24m · transcript

Gold and its role during supply side inflation form the core of this episode. Felix Nikolas Prehn, an economist and former investment banker, traces the parallels between the current environment and the 1970s oil shock, when gold rose from roughly 100 dollars to 850 dollars. He argues that raising interest rates does not address inflation driven by energy input costs and instead punishes borrowers while leaving the underlying price pressure intact. The episode examines how 8 trillion dollars of US government debt must be refinanced at higher rates, why the debt to GDP ratio now matches post…