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Axel Merk highlights that Sweden has shifted from its socialist system to embrace capitalism. Public social spending in Sweden has dropped to 24% of GDP, closely aligning with the U.S. figure of 23%. The country's economic growth is surpassing other European nations, and the abolition of wealth and estate taxes has contributed to the return of wealthy individuals.
Axel Merk previously referenced closed-door FOMC discussions by Kevin Warsh before the financial crisis over government-sponsored enterprises. Conor Sen has noted that excessive regulatory requirements are making public listings more difficult in a K-shaped economy. Both remarks add to recent market commentary on policy shifts and investor behavior.