Axel G Merk's Contributions

Currency Wars Are Evil

Real people may die when countries engage in “currency wars.” Countries debasing their currencies risk. We discuss not only why we believe currency wars are evil, but also what investors may be able to do about them.

Euro: Rock Star of the Year?

After we referred to "Draghi's Genius" last August we received pity and ridicule as feedback. It is no longer taboo to be bullish on the euro, but in our 2013 outlook we took it a step further, predicting the euro will be a "rock star." Despite the recent run-up, we may not have seen anything yet. Let me explain.

Is the Fed Doping the Greenback?

For seven years Ben Bernanke has played Master of the Universe, that is, has been Chairman of the Federal Reserve (Fed). Bernanke vehemently denies his actions put the US economy at risk. Au contraire, having prevented the US economy's collapse, the Fed's actions have yielded profits to taxpayers.

Axel Merk: Be Ready for Fireworks in the Currency Markets - Starting in Japan

Jan 29 – Jim welcomes Axel Merk, Founder and Portfolio Manager at Merk Investments LLC. Axel sees fireworks ahead this year in the currency markets, originating out of Japan. He notes that the Japanese have been reluctant...

Trillion Dollar Battle: Print, Baby, Print!

While the introduction of a trillion-dollar coin has been shrugged off as nonsense, there are plenty of nonsensical concepts employed in our monetary system. Here we’ll shed light on a few of them.

Hidden Treasury Risks?

While Treasuries are said to have no default risk as the Federal Reserve (Fed) can always print money to pay off the debt, hidden risks might be lurking. As oxymoronic as it may sound, the biggest risk to the economy and the U.S. dollar might be, well, economic growth! Let us explain.

Dollar Cliff?

As election euphoria settles and the "fiscal cliff" approaches, what are the implications for the dollar? Even as federal deficits may be unsustainable, stocks and bonds are up, and while the dollar may have resumed its long-term downward trend, the greenback has hardly fallen off a cliff.

Is the Yen Doomed?

Because of Japan’s massive public debt burden, pundits have called for the demise of the Japanese yen for years. Are the yen’s fortunes finally changing? Our analysis shows that the days of the yen being perceived as a safe haven may soon be over.

Axel Merk: No Entitlement Reform Until the Bond Market Forces Politicians to Act

Nov 20 – 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.

China’s New Leadership: Progressive, Not Conservative

We disagree with media reports that China's new Politburo Standing Committee is dominated by relatively conservative members. What we see is a complete defeat of current President Hu's Chinese Communist Youth League (CCYL) clique and a victory of retired President Jiang's Shanghai clique.

ECB & Fed: Worlds Apart

The contrast in approach to central banking between the U.S. Federal Reserve (Fed) and the European Central Bank (ECB) is remarkable. ECB President Draghi has done more to lift market concerns with a targeted strategy than Bernanke’s blunt attempts.

U.S. of A(sia) - United to Weaken the Dollar?!

Our leaders want a weaker dollar and a stronger Chinese renminbi (RMB). That’s our assessment based on recent comments by President Obama, presidential hopeful Romney and Federal Reserve (Fed) Chair Bernanke.

FOMC In Denial

The FOMC has crossed the Rubicon: our analysis suggests that the Federal Open Market Committee is deliberately ignoring data on both growth and inflation. At best, the FOMC’s intention might have been to not rock the markets two weeks before the election.

Currency Wars: U.S. Attack

Doubling down on QE3, the Federal Reserve (Fed) Chairman Bernanke tells China and Brazil: allow your currencies to appreciate. One does not need to be a rocket scientist to conclude that Bernanke wants the U.S. dollar to fall. Is it merely a war of words, or an actual war? Who is winning the war?

Axel Merk: Beyond the Fiscal Cliff−The Dollar At Risk

Oct 16 – Jim welcomes Axel Merk, founder of Merk Investments LLC. Axel discusses the potential risk to the US dollar, beyond the issues of the Fiscal Cliff. He also discusses three scenarios that put the bond market at risk going forward.

Beyond the Fiscal Cliff: the Dollar At Risk?

Looking beyond the fiscal cliff, we are afraid the greenback may be at risk no matter who wins the election. We examine the risk to the U.S. dollar in the context of the likely policies pursued under either an Obama or Romney administration.

Fight the Inflation Boogeyman

Investors are concerned about inflation. But how can investors attempt to inflation-proof their portfolios? Buy TIPS? Short Treasury bonds? Stocks? Real Estate? Commodities? Gold? Currencies? Or should investors regard those warnings about inflation as fear mongering?

Bernanke Put: Beware of Easy Money

Central bankers around the world may be providing a backstop to the financial markets in much the same way Greenspan did during the “Goldilocks” years, but when the short-term euphoria wears off, will the negative repercussions be even more severe?

U.S. Dollar: Don’t Worry, Be Happy

May we suggest a Twitter version of today's FOMC statement: "Don't worry, be happy!" – No, the economic outlook hasn't improved. In fact, the Fed may want you to take a valium to stomach the ride ahead.

Euro: Looks Like a Duck, Quacks Like a Duck

If it looks like a duck, quacks like a duck, it just might be a duck. We are talking about the euro: it now looks like a currency, acts like a currency, it might as well be yet another currency. The new framework of the European Central Bank (ECB) morphs the euro from a currency of nations to a currency of the United States of Europe.

apple podcast
Financial Sense Wealth Management: Invest With Us
randomness