By: Axel Merk and Yuan Fang, Merk Investments The concern over rising interest rates has become a primary issue with investors. While few assets are immuneto rising rates the bond market may be particularly vulnerable. The headwinds may be exacerbated by changing fundamentals in the U.S. bond market, specifically growing concentration, extended duration and changing […]
Confidence In Central Banks Collapsing – The Next Financial Crisis Could Spin Out Of Control
June 26, 2013 Leave a Comment
In response to the financial crisis, massive debt burdens and slow economic growth since 2008, the world’s central banks have engaged in unprecedented monetary intervention. Short term interest rates have been suppressed by to levels barely above zero and central banks have purchased trillions of dollars of government debt securities to finance governments already staggering […]
Chinese Stock Market Collapses 67% Despite Massive Stimulus Programs
December 12, 2012 Leave a Comment
The debate over whether or not government stimulus spending (financed by borrowing) is effective in reviving post crash economies rages on in the U.S. Despite the anemic economic recovery, proponents of deficit spending postulate that things would have been much worse without it. Opponents of massive deficit spending insist that the problems are merely being […]
Why The Yen Could Collapse – Japan On The Knife’s Edge
November 28, 2012 Leave a Comment
By Axel Merk 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. Let us elaborate. So many foreign exchange (“FX”) […]
The Entire Eurozone Has Entered The Dark World Of Economic Depression
November 2, 2012 Leave a Comment
Both governments and banks are insolvent across Europe. The only finger in the dike that is preventing a broad economic collapse is the rampant printing of money by the European Central Bank. Unfortunately, printing money has never resulted in economic prosperity, it simply delays the final collapse of insolvent governments. Depression levels of unemployment throughout […]
Allen West On Why Democracies Are Self Destructive – Free Everything Cannot Work
September 20, 2012 Leave a Comment
Mitt Romney raised a firestorm with his comments about the large number of Americans relying on government handouts for survival. Adding to the debate, Congressman Allen West of Florida penned a thoughtful reply which concludes that the country cannot survive unlimited dependency. By Rep. Allen West WASHINGTON (MarketWatch) — Gov. Mitt Romney’s comments about the […]
What Is The Value Of Paper Currency?
September 19, 2012 Leave a Comment
Central banks around the world have initiated a policy of virtually unlimited quantitative easing (money printing). Does anyone expect the value of paper money to retain its purchasing power as central banks print endless amounts of new paper money out of thin air? Gold and Silver Blog Japan Joins The QE Race – Who Can […]
It’s Not Your Imagination – Our Living Standards Are Collapsing
September 4, 2012 1 Comment
No one likes earning less this year than last year. If the weekly paycheck is a scoreboard on how well we are doing – then we are all in deep trouble. The Center for American Progress recently published some shocking charts that portray the American middle class besieged by lower income, higher costs for essential […]
Crashing Chinese Stock Market Is A Red Flag For World Economy
August 18, 2012 Leave a Comment
While the Dow Jones Industrial Average approaches all time highs, the Chinese stock market is flashing a bright red warning signal about the world economy. Since China is the world’s second largest economy after the United States, a recession in China is almost certain to negatively impact the global economy. One look at the iShares […]
Why U.S. Deficits Are Necessary and Austerity Is Self-Destructive – Finance For Dummies
August 15, 2012 Leave a Comment
Would the United States be committing economic suicide by instituting an austerity program to reduce the national debt and deficit spending? One man who thinks so is Bill Black, author of “The Best Way To Rob A Bank Is To Own One.” Bill Black is a financial expert, frequent critic of the banking industry and […]