Axel Merk: No Entitlement Reform Until the Bond Market Forces Politicians to Act
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Jim welcomes Axel Merk of Merk Investments LLC joins Jim to look at the “fiscal cliff” and other issues facing Washington. Axel believes the bond vigilantes will eventually show up and the fireworks will begin in the bond market. He thinks you don’t need the Chinese to sell Treasury bonds to see a crisis in the bond market. With the massive federal debt load, the problem will begin when the market begins to price in inflation, and interest rates begin to rise. Axel sees gold reacting favorably to the Fed’s monetary policies, and believes gold will be a good investment for the next decade.
Axel is the Founder and President of Merk Investments LLC and the author of Sustainable Wealth: Achieve Financial Security in a Volatile World of Debt and Consumption. Merk is considered an expert, providing insights on macro trends, hard money, international investing and building sustainable wealth. An authority on currencies, he pioneered the use of strategic currency investing to seek diversification.