Thread: Axel Merk: Why Is Anyone Still Waiting to Sell the Dollar?

Axel Merk: Why Is Anyone Still Waiting to Sell the Dollar?

Friday, April 22, 2011, 9:13 pm

"The Fed can buy billions, even a trillion or so, but if and when the market is moving against the policymakers then there is no stopping. The Fed cannot stem that tide. There is only so much that they can manage and so it is something that they have to watch very carefully. At the same time, they are not terribly concerned. If the bond market is falling, you do not know whether it is because of more economic growth or because of more inflation, and you really only know after the fact.

So for now people think “We have economic growth kicking inâ€

Click here to display the transcript of the podcast

Chris Martenson: Today we are speaking to Axel Merk, president, chief investment officer and founder of Merk Investments. Axel is a noted expert on world currencies and manages several mutual funds that manage currency risks for investors. For years he has been an outspoken critic of US monetary policy, warning investors that the current course risks seriously devaluating the dollar. The past few years have proven his warnings to be accurate. He is also the author of Sustainable Wealth, a very readable guide to understanding our macro economic environment, the risks today’s investors face, and how they can mange their finances to achieve financial stability - very important in today’s world. Axel, thanks so much for making the time to join us today.

Axel Merk: Hi, good to be with you Chris.

Chris Martenson: Let us jump right into, it, the US dollar is trading at its lowest level since the carnage in 2008 and there are many voices, yours and mine included warning it could go a lot lower. So if you could recap for our listener’s right here and now how we got here and what is your outlook for the dollar?

Axel Merk: Well the dollar has really been on a very, very long term decline for decades and sometimes it puzzles me when people say “Oh, I will sell the dollar and get out of it if and when it does come downâ€