I Fear a Crash-Axel Merk

Alex Merk

Greg Hunter’s USAWatchdog.com 

Money manager Axel Merk is worried about financial risk and that it is being downplayed.  Merk says, “I am very concerned.  I am spooked about the equity markets.  The folks that buy stocks buy them because they have to keep up with the markets.  The folks that buy gold buy it because they like gold.  Just recently, you have a down turn, and you don’t have this rush to sell gold right now because the folks holding it are strong hands.  Whereas in the stock market, if you have a wave of sellers, who says everybody is not going to rush for that same exit at the same time.”

Merk elaborates on being “spooked on the equity markets” and explains, “I fear a crash.  The reason I fear a crash is that when you have a market that goes up relentlessly, and volatility goes down and complacency is high, that means folks are buying equities that are not aware of the risks of the stock market.  The moment the fear comes back to the market, for whatever reason, those guys are gone in a heartbeat.  We saw that a little more than a year ago in the emerging market and fixed income market.  Everybody thought they would get a free lunch and (Fed) exit talk comes up, and suddenly everybody is running for the exits and it’s a bloodbath.  You saw that in the tech bubble and the housing bubble.  Complacency is the best bubble indicator out there.  The timing is a little bit difficult, but it is more prudent to take the chips off the table before you have the problem than after the problem.”

Merk, who has $400 million under management, likes gold and explains, “The medium to long term reason why I like gold is I don’t think we can afford real positive interest rates. . . . If you look at real interest rates, they have been negative.  They have gotten more negative of late, and Janet Yellen is promising she is going to be late in raising rates.  So, even as nominal rates go up, real rates are going to continue to be negative.  So, I don’t buy gold because of a crisis flaring up here and there because those things can be short term.  Now, Putin has a long term interest in instability in Ukraine, but I buy gold mostly because if I look 10 years out, and you think we are going back to the historic rate that we’ve paid on financing our deficit, we’ll be paying more than a trillion dollars a year to finance our national debt.  We can’t afford that.  So, that means the Fed is going to keep rates low, and we are not going to be paying a trillion dollars a year.  Something is going to give, and gold is the purest way to play those sorts of scenarios.”

On Isis in the Middle East and crisis in Ukraine, Merk thinks there is a common denominator.  Merk charges, “The Fed is at fault with everything, including ISIS and Ukraine.  We have fostered an environment over the last 15 years where we are eroding the middle class by having these ultra-low monetary policies.  It drives global over production.  What is happening is you have commodity prices high where corporations get squeezed.  You have no pricing power.  You have a flood of goods, and final goods prices are low.  So, what happens are real wages stagnating in that sort of environment.  In the U.S., you have the rise of the Tea Party and Occupy Wall Street, but what you got in the Middle East are revolutions because people can’t feed themselves anymore.  In Ukraine, the problem is they can’t balance their books.  They can’t afford the natural gas.  This is a common problem throughout the globe. . . . We have to get back to sound monetary policy.  That is why the Great Depression ended up in World War II, and these same sorts of forces play out when people get dissatisfied.”

On worldwide geopolitical risk, Merk contends, “Political stability throughout the globe is on the decline.  We see that in the U.S.  You are either on the left or the right.  There is no middle ground.  In Europe, you have social erosion, and you have that in many places in the world.  Policymakers never blame themselves for the mistakes.  They blame the minority.  They blame the wealthy and they blame foreigners.  That’s how they fix their problems.  How about some military engagement in Russia?  I don’t think Merkel is going to pull it off, but the Japanese might pull it off somewhere.  The good news as an investor is our policymakers are quite predictable.  The place where this plays out is the precious metals market and the currency markets because those things move when major policies are affected. Of course, things happening in the Middle East might be less relevant than things happening in Russia because Russia can turn off the gas in Europe.”

Join Greg Hunter as he goes One-on-One with Axel Merk, President and founder of Merk Funds.

(There is much more in the video interview.)

After the Interview:

Axel Merk provides free investment webinars.  His next one is in mid-September, and he’s calling it a “Fireside Chat with Axel Merk.”  Mr. Merk will take questions and will talk about gold, the dollar and other currencies.  If you would like to attend this online event, please go the registration page by clicking here.  You can also get Merk’s articles by signing up to his free email subscription page by clicking here.

Comments
  1. Mason

    Excellent guest Greg!
    I have read some of Axel Merk’s pieces before, but I this is the first time I saw him speak. It is obvious that he is very smart, that he has a great understanding of the markets, and that he readily shares that knowledge. Great take-away: “Complacency is the best indicator to take chips of the table.”
    On the other hand, I believe Martin Armstrong thinks the stock-market will rise (apart from maybe a minor correction) into 2015.75 because he says it basically is the only game in town right now. IF I read Armstrong correctly, he thinks that precious metals will rise around 2015.75. Well, conflicting views is what makes a market.
    Bottom line: I really get why a lot of investment-guru’s are saying you should go into precious metals, they are fundamentally correct, and especially at a time like this I agree with them. But the thing is that in 2011 a lot of these investment-guru’s (I’m not talking now about Axel Merk by the way) were screaming at the top of their lungs that gold would go parabolic shortly, and now here we are 3 years later, and gold has only declined. Yeah yeah, I know, Gold Is Manipulated All of The Time (have you noticed that gold is supposedly never manipulated upward?). So, what to do with your money is the question for me. Gold, silver, cash, and shares?

  2. Oracle 911

    Hi Greg
    Russians don’t want a failed state on their borders: http://en.ria.ru/politics/20140822/192256711/By-Blocking-UN-Resolution-US-Shows-That-It-Seeks-Ukrainian.html
    Who in his/her right mind want that?
    So the escalation in Ukraine is not in Russian’s interest. Escalation over Ukraine is not in the Russian’s interests either, not in EU’s interest (it hurt business) and not in China’s (their interests lies mainly in South-East Asia). This means the remaining culprit is the US gov/deep state, whom want hide the collapse or blame it on somebody else.
    This also means lot of EU leaders like Merkel and the EU bureaucracy is US puppet, look at the TTIP.
    And one more “funny” thing, the farmers are already pissed on the EU because of the EU politics and the German business already took several hits at each round of sanction. It isn’t raise the political stability and lot of heads will fall, and the EU will fall apart.

    Your thoughts.

    Best regards
    Oracle 911

    • Mason

      Oracle 911,
      My thoughts: Axel Merk is very intelligent and has great analysis, but I think he is too busy with his business to know his way around the alternative media-channels and to keep up with NWO-literature. Therefore I think he knows more about the FX-market and derivatives than we do, but it also means he probably does not possess all the relevant information. I do not think he knows the MSM is corrupted and realizes how much the Western (or US) oligarch-class is pushing for war.
      I agree with most of what you said, but I think a few important nuances are missing. Escalation over Ukraine is indeed not in Russia’s, nor the EU’s, nor China’s, nor Ukraine’s interest.War is in the interest of the oligarch-class of the US.

      Now for the additional nuances:
      – First, a lot of commenters on this site reject the thesis that Putin has a long term interest in instability in the Ukraine. I think Putin does not want instability at his border per se, BUT that if he has a choice between either a NATO-friendly nation at his border or a nation that is not stable, he will chose the latter.
      – Second, the Western mainly NWO oligarch class (mostly US and UK) is pushing for war, BUT they have their counterpart in the former Soviet States as well. They are called leninists or sometimes marxists-leninists. They still exist, and have only changed their hat since the fall of the Soviet-Union. The distinction between them and ordinary communists is very important, because the ONLY thing that is important to a leninist is power (see the post under my name on: http://usawatchdog.com/threat-of-nuclear-war-back-paul-craig-roberts/). So while I agree that the US and NATO is the agressor in this instance, you shouldn’t rule out how much it could also play into the hands of the leninist oligarch class. The enemy of your enemy is not necessarily your friend.

      Finally, this isn’t about a war between countries. This is a war between the oligarch class of every country on the one hand and every citizen of that country on the other hand. The most important thing to remember is that the US oligarch-class is what is most dangerous to US citizens. The Russian oligarch-class is what is most dangerous to Russian citizens. As a US citizen you will be in far greater danger to be targeted/shot/fined/imprisoned/etc coming from the NSA/Homeland Security/etc. than you will be from some Russian agency. The sames goes for Russians in their own country: Russians will be in far greater danger from their own agencies.

      Do you know what the difference is between a war and a revolution?
      War is when Governments tell you who is the Enemy. Revolution is when you finally figure out who is the real Enemy.
      (http://armstrongeconomics.com/2014/08/04/difference-between-war-revolution/)

  3. Colin - 'the farmer from NZ'

    Hi Greg
    I love what you do on Watchdog.
    You interview this incredibly wide ranging spectrum of people and really get our minds working overtime.
    Please excuse my Kiwi agricultural way of putting things but….
    IMHO Merk’s opening comments on the Ukraine and Putin demonstrates a perspective that I would use a local expression to describe –
    ” His head is that far up his rear orifice he is in danger of being inside out”.
    Greg I know by your expression that you too were shocked also.
    Cheers
    Col

  4. Stan

    I switched off as soon as the guy denied that the US fomented the problems in the Ukraine and suggested that Russia shot down the airliner.

    • Jim

      Was said on one of the popular daytime shows that the airliner was machine gunned on both sides and it had to be a fighter that did it. Anyone heard anything about this from a dependable source? Understand we had an exercise going on in the Black Sea that day which ended the next day. Would think radar would of been all over the whole region. Someone
      probably knows what happened but is not talking.

    • Martijn

      I did the same.

    • summitwalker

      I agree, as soon as he said Putin wanted instability on his border I did an eye roll, when he indicated Putin shot down the airlines, I spit out my coffee. This guy may know finances, but the situation in Ukraine, not so much. It is obvious that Putin is reacting to events, to think this was all the plan of Russia is insane. And I still don’t get how Japan is going to do anything about it.

      • Bud Wood

        Seems that Merk is a European, always, and is convinced that Europe is “right”. End of story.

        • Reinout Mechant

          Not all Europeans are convinced that Europe is “right”.

    • Rife

      Switched off and had a nice, cold koolaid…..

  5. wach auf

    ” Putin has a long term interest in instability in Ukraine” this is the most stupit thing i ever heared.
    qui bono!
    i think you may be a good investor but you didn’t mention about the economic problems and the dollar dominace in your country and that will make your business little difficult. to be invested in gold and other comunities can rescue you. what you have said here would be a reason for me not to be invested with you anymore. this system will come to an end and people who believe in you will be the loosers.

  6. vincentg

    Mr. Merk makes some interesting points on issues in the world.
    I am in 100% agreement with him that the monetary system is the root cause of all major problems.
    This is why we need to create a system world wide that eliminates private ownership of central banks or eliminate central banks altogether.
    And to ensure market stability a Glass Steagall Act must be instituted in every country.

    If only the US changes it’s system then we will have forces that will work to destroy it.

    By past failures we know what works and what does not work.
    A private owned printing press does not work.
    Glass Steagall works.

  7. dchayden

    Merk is a great wealth of financial information, however, I would not look to him for advice on war politics, or anything outside of his expertise, as he seems to have a very obvious bias towards Mr. Putin. Not saying Putin is a good guy in all of this, but it was pretty obvious Mr. Merk has some very strong preconceived opinions in that area, that are perhaps limiting his objectiveness. Great interview Greg !

    ~Derek

    • Henry

      I agree that it’s pretty strange to suggest that Putin wants a warring U.S. puppet state on his border. Sy Hersh reported that it was the U.S. backed terrorists in Syria who used Sarin gas, and not the Assad regime, and now the U.S. is backing very violent right wing extremists in Ukraine. Obama was very close to bombing Syria, but Putin defused the Syrian crisis by brokering a deal to destroy Syria’s chemical weapons. It seems clear that to me that it’s the U.S. government that has promoting war and instability, not the Russian government.

      • Blt

        So why DID Putin invade Ukraine then? Just wanted to know because I honestly am confused these days

        • Rife

          he didn’t. turnoff your TV news, stop buying mainstream newspapers and go on the wagon from koolaid

  8. HTC

    Greg, this will come to a head very soon. Axel is looking long term and as far as I’m concerned we don’t have it. I read an interesting article

    http://www.silverdoctors.com/large-holes-forming-near-the-new-madrid-fault-and-a-giant-crack-in-the-earth-in-north-mexico/

    There is more proof of the signs that Jesus said we would see before his coming. And guys when we see these things, look up for our redemption draws nigh.

  9. Jerry

    Greg, thanks for bringing Axel Merk on.
    Its always interesting to listen to an investors point of view when projecting future market trends. They always seem to project an opportunist point of view. I heard the word “diversify” several times in your interview.

    Yesterday I was talking with a lady I have known for a long time about her financial portfolio. She said three years ago, she had taken all of the money out of her 401K and put it in stocks. She was proud of the fact that she had almost doubled her money in three years time. When I suggested that she should pull it out, and maybe invest it in something else, she looked at me and smiled, and said “why would I want to do that when I’m making so much money now”?

    Greg these people have no idea what’s about to happen. They have been living in this false illusion created by the Feds phony baloney money policies for so long, that they think its REAL. Creating 125 Billion dollars a month out of thin air is not a market policy. Its a formula for disaster. Its what banana republics do. And when the globalist that are running the Fed complete their new gold backed exchange system, they’re going to pull the plug on this scam, and then all these people will be running to their Banks to get their money out just like they did in 1929.

    I’m not good at placing a bet (as demonstrated when I lost to Galaxy 500) but if I were to pick a date that I think the economic stars would be aligning for disaster it would have to be mid to late November. Black Friday may be followed by crash Monday when bottoming retail sales expose the rotting underbelly of this so called recovery.

    • Chaban

      Yet, thaïs lady dis double her money in the last three years, as did many others.

      Those of us who listened to Paul Craig Roberts, Jim Willie, Jim Rickards, John Williams and co. (and I’m certainly one of those people) did NOT.

      So who got played in all this?

      I have heard for FIVE years now that the system was about to collapse. I think I spent way too much time on sites like this one.

      I should have gone out more; I would have seen the packed restaurants, the explosion of new cars on the road, the construction everywhere, etc.

      I am tired of waiting for a collapse that will never come. How could the system collapse anyway when the elites that benefit from it pull all the strings?

      Things are not great, but by the look of it, we are not even close to a recession. Just this last weekend we went out and there were lines outside restaurants downtown where we live. The stores were full. Everybody walks around with either a smartphone or a tablet, etc.

      I am among those who got fooled by the doom-and-gloomers.

      • Chaban

        Oh and here we go: markets hitting yet another all time high…

      • JC Davis

        Chaban. This interview was 16 minutes and 13 seconds. Your post must have taken some time and thought. Could it be your heart is telling you something your mind is not. Give me a trillion dollars and I can hire many people for some time. If I am flat broke and made to stand on my own I will be lucky to feed myself.

  10. Chaban

    Putin wants instability right at his border? Say what?

    This guy has zero credibility.

  11. smaulgld

    Axel is very astute.

    He raises a point not mentioned often-Europe and Japan can’t boost their GDP with military spending only the US can-that gives the US an “advantage” in artificially boosting its economy and allows the US to dictate geo politics and the world economy as the US spends $’s to defend Europe and Japan. The US can tell Japan and Europe what to do and then spend the $’s to back their policies, but Japan and Europe don’t “benefit” from the spending.

    Diamonds and fine art peaked a few years back. Silver is a spike and dive commodity-as Axel points out much more volatile than gold-Here are charts from the past 44 years comparing gold and silver vs the dow.

    Gold vs the Dow http://smaulgld.com/gold-vs-dow/
    Silver vs the Dow http://smaulgld.com/silver-vs-dow/

    Axel is correct on the being stupid makes you look smart dynamic until you look really dumb!

    Axel has written a good book “Sustainable Wealth”. He also runs a physical Gold OUNZ.
    I recommend his book- I make no recommendations on his fund!

    • woody188

      It’s not well known that any NATO partners now also bid on US military contracts, so Mr. Axel is incorrect in his assertion. NATO manufacturers do benefit from US military misadventures.

  12. archivesDave

    Hope u can get ‘Broken Clock Harry’ Dent on again before long Greg.
    He’s certainly the contrarian that has been swimming against the mainstream for some
    time and judging from the upward approach of the Dollar and downward slide of gold
    right now, he seems to be finally on a roll.

  13. Doug C.

    Gregg.
    Good interview. I agree with his accessment to “take chips off the table” now, rather than on the way down. He seems to have a good handle on the investing side of what is going on right now. Unfortunately, I think he has been watching CNN to much when it comes to the Ukraine situation. When he implied that Russia was the ones that shot down MH17, I figure he is very uninformed. Why haven’t we seen any satalite photo’s of the actual crash? The U.S. satalites were directly overhead at the time (coinsident?). Why haven’t we heard the ATC tapes? I am a AirTraffic Controler and there is no way an airline would be sent over an active military area without someone from the Military okaying it and telling the Controllers to do it. By the way, were is the Airtraffic controller that was talking to MH17 at the time it went down? What are the preliminary findings of the Black Box’s? Has anyone talked to the captains of the other aircraft in the sky at the time, they can hear everthing that MH17 was saying to the controllers as well? It’s out of the new cycle because it couldn’t get people riled up enough for war, so off to Iraq…….Maybe that will work, A few bomb, a few military advisers? I think the bankers/langley are getting more and more desperate since no one wants to go along with story line anymore. I hate to say it, but like you mentioned, there may well be another 911 event in the U.S. in the near future, to get the ball rolling. Then see the talking heads come out with the propaganda on all the MSM networks and the banging of War drums. I sure hope it doesn’t come to that, but I fear desperation to ramp up War will cause it, and watch your freedom completely melt away (Pearl Harbour, 911,………?).

  14. Randy

    Greg,
    We all know the economy is going to collapse. Please consider and share the globalist real agenda:
    Aaaron Russo film maker and former candidate for Nevada governor became a close personal friend of Nick Rockefeller. Over years he was told the globalist agenda.
    Please consider and share.
    https://www.youtube.com/watch?v=FuinaIm-kd4
    no surprise seeing what he knew….he is dead

    • Mason

      Yes, I have seen the interview with Aaron Russo talking about his close personal friendship with Nick Rockefeller. I consider it to be a must-see-video! Great excerpt!

    • JC Davis

      Randy. When I first saw Aaron Russo’s film From Freedom to Fascism, I went out and bought 20 copy’s to pass around. Eye opening documentary. I can only imagine what he would had done if he were still alive. Thanks for posting.

    • Ron

      Randy,

      Everyone who knew Aaron Russo misses Aaron Russo. To me he was an American hero. He stands with Norman Dodd, Dwight D Eisenhower and JFK.

  15. Pollard

    I only listened to the first part. When this guy started with the anti-Putin propaganda and took it for granted that Putin shot down that airliner – why would he? – he lost the last shred of credibility in my eyes. Pure propangad shill, sorry.

  16. Arizona

    Talking about money is fine,BUT what about the real world?you know the world were 90% of the people are dirt poor and 10% have enough stashed to last a while,MAYBE,just maybe ,the country should listen to military people who are sounding the warnings about NO FOOD,any Idea how much gold and silver will be worth when the super markets are empty,…NOW,lets talk about what those military people said,buy BULLETS and GUNS,or you’ll have what you stashed taken away faster then you got it,and probably be killed,WHEN the crash comes,and it is coming,YOU BETTER BE READY,the foreign troops are here to take you down,and all the gold on earth won’t save you……AND “RED DAWN” was more then a movie,IT WAS A WARNING TO AMERICA,what the scum in government has been planning if they got caught with their hand in the cookie jar,AND now it turns out,THEIR the ones who stole the last cookie jar……….better be getting ready………….

  17. Arizona

    OH,GREG,heres one to think about,I was at a protest in DENVER,..THAT piece of crap UDALL came out and said I’ve got a ticket,WE don’t care what you want,go home,your just wasting your time and ours,go home…..I figured he ment the underground cities,BUT,now I’am starting to rethink that,I talked to an ARMY RANGER,he said no they are planning to move to MARS,they KNOW NIBIRU is coming and whats going to happen when it shows up,POLE SHIFT,then it gets worse,THEY have SOLD the entire planet to the aliens,and everything on it,have you seen the wars with the aliens going on around earth,the us military has been being attacked all over the middle east,and here in the USA,mainly in the deserts of arizona and new mexico,but its been going on everywhere……I think we have a bigger problem then we think?……………..

    • woody188

      Please allow me to ease your fears. There is no Nibiru. If there was, a plan to move to Mars would be futile as it too would feel the forces of gravity from the “dense planet” on it as well as I Earth. I have a really large telescope and I live in the middle of nowhere. With it I’ve seen the moons and the red eye of Jupiter, the rings of Saturn, and the craters of our own moon. I’ve seen nothing to indicate there is any rogue planet racing towards our home or solar system.

      This doesn’t mean polar shifts don’t happen. There is geological evidence indicating this is so. But don’t believe the giants of the planet Nibiru will be the cause of any pole shift. Military guys love to mess with people that believe this stuff. They even named an operation in 2003 during Operation Iraqi Freedom “Operation Planet X” on the day Nancy Lieder of zetatalk.com, credited with creating the Nibiru cataclysm back in 1995, claimed Nibiru would become visible to long range telescopes.

  18. Larry

    As soon as Axel was willing to pin the shoot down of the airplane on Russia, my interest in what he has to say went away. Their is no proof and Axel ignores any involvement with the US. He is off my list to listen to.

  19. Jerry

    Ukrainian update.
    Rook to square 10. Putin makes his first move.
    http://www.foxnews.com/world/2014/08/25/russian-tanks-armored-vehicles-enter-southeast-ukraine/
    I still stand by my statement that this is for all the marbles. Either way the dollar will lose. If NATO does nothing, it will show the world once again, that the United States is a paper tiger and is not deserving of world reserve status. If NATO is forced to respond, it will split the coalition in two, with Germany leading the way. These countries have no desire to bite the gas pipeline hand that feeds them. Checkmate.

    • wd

      Jerry,

      I had a history teacher explain that no one ever really knows/knew how strong or weak thr Russian bear really is. But he said never piss it off. No matter who you are.

      That was an exact quote. I think these fools underestimated Putin terribly.

      • Jerry

        WD
        From what I’m hearing the Russians have weapons that make the drones look like tinker toys. I surmise that is why NATO is hesitant to pull the trigger.

    • JC Davis

      Jerry. How much Gas flows from Russia to the euro nations? Will they Freeze without gas from Russia ? Its going to be a long cold winter. Another question. Why is Russia cutting off western food being brought into there country. What is the USA sanctioning if not food ? not the auto industry. Seems to me Russia is sanctioning America.

    • Jerry

      Ukraine Update 08/26/2014 9:42 CST –
      http://www.nytimes.com/2014/08/27/world/europe/ukraine.html?_r=0
      This keeps getting more interesting by the day. Now the Ukrainians claim they have captured Russian troops inside Ukraine. Meanwhile I hear the low hum of meditation coming from the white house as Obama contemplates his next move. Wanna know what it is………..??……..T-time ….T-time.

      • Greg Hunter

        Jerry,
        If the situation was not so dire this comment would be funnier.
        Greg

    • Paul from Indiana

      We blew this one back in the early ’90’s. We should have extended NATO membership to the new Russia. Problem solved. In my estimation, Ukraine is not worth fighting over, but I imagine that Estonia, Latvia, and Lithuania might be a little nervous right now. I’m not dismissing the situation, but Russia’s track record in war is not stellar. Hitler should have returned France to the West in exchange for being left alone in the East. They’d be speaking German in Moskau yet today. Best always. PM

    • Silence is Golden

      One gets the feeling that the recent convoy of vehicles was sent to test the “resistance”…as it were.
      Impotence for lack of a better word comes to mind with regard NATO and USA in all matters Ukraine/Russia.

  20. Jerry

    Survival Gear- Solar cooker.
    This is one of the best solar cookers I have ever see.
    http://www.sunmagicoven.com/CSS130.html?utm_source=CSS130_280x280_DC&utm_medium=CSS130_280x280_DC&utm_campaign=CSS130_280x280_DC
    Where I live, we have an endless wood supply to fuel our biolite stoves. If your not that lucky. this stove may solve you problem.

    • Mason

      Saving this link under ‘My Favorites’ as well, so thanks Jerry :-)
      Hope that I can come round to buying these before the system crashes down and the grid comes off.

    • JC Davis

      Jerry. This one impressed me ! I built one ( non parabolic ) it only gets highest around 170* At the price of electricity, propane or even charcoal it is not a bad price. Seeing it is a lifetime purchase. I would like to know what material soaks up sun rays without getting hot. Thanks for showing this.

    • Rich M

      I concur with that. I also can’t help but think about the patriotism of the Russians and their leaders dedication to their own “Mother Russia” (over and beyond loyalty to banks and corportate interests). While we still have true patriots here in the USA, I see far too many who are like dependent spoiled children and feel they are entitled and have no will or wits about them. In Russia, they call each other their Russian brother or sister. I do not see that so much here in America. I think they would have the stomach where here it would be just like the last 5-6 wars casuing greater devision. I also think Putin is being the adult here. He knows he could easily “beat us in any chess game” except that he knows in playing a spoiled child at chess, they may use their Queen (their best piece) to take one of their pieces in a crazy suicide move and causing some initial reckless damage. Then when the queen gets taken, that spoiled child throws a temper tantrum and swipes the whole game onto the floor and storms off. I think thats what we are dealing with here.

  21. Chip

    Interesting take on Putin. Not sure that I agree. Putin may use the hand he’s being delt by the US State Department/CIA and NATO but I sure don’t think he instigated the situation. We’ve left Putin no options. Ukraine/Crimea falling to NATO was not an option. Think if China took Canada and Russia Mexico… would we just sit by?

  22. JP

    I did not realize how out of touch, biased — perhaps ignorant is a better descriptor — Axel is on geopolitical instability in the Ukraine. He has obviously been watching way too much propaganda dished out by US Mainstream Media and not researching and considering alternative points of view.

    Here you go Axel — get yourself better informed. Listen to this guy to get a more reasoned and sensible point of view:

    Interview with Sergei Glaziev – Advisor to President Putin (15 min)
    http://www.youtube.com/watch?v=cikvqdMRTTA

    More discussed at:
    http://www.zerohedge.com/news/2014-08-23/putins-chief-integration-advisor-warns-transition-has-always-come-about-through-war

    • Judge Roy Bean et al

      JP, you hit the nail on the proverbial head, Fred and as JC say’s, the lie is halfway around the world before truth even has it’s shoes on and when the truth does catch up it’s back page news for maybe the history books in future generations, if there’s still a free people, somehow, someway, somewhere!

    • Mason

      JP,
      Great link, thanks.

  23. vanessa

    $#!t to hit the fan soon. Obama is to blame for the demise of the u.s and Obama is on the middle east side to bring down the US no one can see this and I don’t understandwhy people are so stupid and can’t see

    • Paul from Indiana

      Vanessa, they don’t WANT to see and the media are enabling them not to see.. The media in this country started trending LEFT in the s0-called Progressive Era beginning with the Teddy Roosevelt administration. It went LEFT completely during the McCarthy-communism episode, when they ended up with egg on their faces, and they have never forgotten it. Best always. PM

  24. Jerry

    This man has become my hero :)
    http://rt.com/news/169396-poo-protest-barclays-bank/

    • Judge Roy Bean et al

      Jer, he’s an enema of da people!

    • JC Davis

      Jerry. Fresh juice from the yellow poison bag in a catfish. a few drops will ruin carpet. Make a great fly catcher mix also.

  25. Jim Blanchard

    Another significant perspective. Alex Merk expounds common sense and integrity.
    Thank you, Greg.

  26. Armed Resistance

    While I think Greg does a fantastic job of covering what’s really going on, this interview was difficult to watch from the get-go because of Mr. Merk’s position on Putin and the Ukraine. While I don’t think that Putin should be insulated from criticism, to carry the MSM talking points that HE IS THE AGGRESSOR and the disruptor in Ukraine simply defies conventional wisdom. Furthermore, to carry on about “markets” as though they are traded freely is all of the more insulting. I understand that’s how he makes his living but I’m used to having more truthful and honest guests on the show… This was my least favorite interview on USAWD by a mile!

    • Paul from Indiana

      You obviously have forgotten the Karen Hudes fantasy-world “interview”, but that’s OK. I’d like to forget it, too. Best always. PM

  27. Marcelo

    “Now, Putin has a long term interest in instability in Ukraine” I stopped reading when Mr. Merk said that. I cannot trust him. If he says that, either he has no clue on whats going on in Ukraine or he is on the side of the MSM, which in other words means he consider all of us a bunch of idiots. Mr. Merk should know that Putin is the first to be interested in having “STABILITY” across the border. The ones who want “INSTABILITY” in the Russian border are the US/Brussels/Nato. Thats probably why they started all this installing a Western puppet goverment.

    • Judge Roy Bean et al

      Marce, Have you ever seen the movie’s of the people who find a gold mine? They are as giddy as Axel and dig 24/7 and wouldn’t know if a T-Rex just passed by. These CNBC talking heads think they have a gold mine, going on, accumulating as many of the dollars created out of thin air by the non-federalizes of the US. central bank, as they can. They’ve never seen so many dollars, as the world goes to hell “sheol” in a hand cart and either they don’t know what the heck’s going on or could care less because they think their all becoming rich beyond their wildest dreams, unfortunately they will only wake up to their worst and wildest nightmare, if they don’t snap out of it, before a great and terrible tribulation the likes of which has never been seen before or will be ever seen again, comes upon them and us the informed. At least we wont be in the dark, hopefully.

  28. Jerry

    Greg I betting that you will find this bit of information interesting \.
    http://investmentresearchdynamics.com/more-corruption-on-the-comex/
    So why would someone want to push the price of gold and silver down? If you remember a few months ago I talked about silver being used as the primary token of exchange currency in the turnstile exits from the dollar? That the primary purpose “The City” moved the Silver Fix from London to Chicago was in order to set up shop for this event? Unless I’ve missed my guess. the Oligarchs who control our markets are preparing for this event, by buying up as much gold and silver as they can now by keeping the prices low. Once the stampede from the dollar begins (possibly a few months from now) , they will be in position to control the price of gold and silver and begin the final fleecing of America as people flee from the dollar. This will be, in a very real sense, the beginning phases of wealth transfer, from this country into the new gold backed exchange system, that has been prepared by the globalist who made it.
    Ukraine is just the fuse to light it.

    • Greg Hunter

      Jerry,
      Yes sir, very interesting!
      Greg

    • JC Davis

      Jerry. I agree with all of this post except the reason the metal hording is being done is to make it impossible to be used as currency. The rfid chip, and thereby full control is the ultimate goal. In a few months, maybe. The reason our leaders will not insulate/ protect the power grid is simple. The grid failure will end all wars, and paper currency. Scientist believe we are on the verge .
      https://www.youtube.com/watch?v=6uzRIJIH0eQ

      • JC Davis

        Short gamma ray burst starts about 30 minute mark.

    • West Tejas

      @Jerry: The Shanghai Physical Exchange opens Sept 26th. This should get interesting by Nov or Dec.

  29. Andy Anderson

    Hi Greg

    “The Fed is at fault with everything,” yes they are indeed.

    In 1913 the Banking Cartel took control of the US Monetary system.Congress on X-Mas eve 1913, pushed the Cartel’s fractional reserve banking system and the IRS so that the US citizans would repay the Banking Cartel’s loans to the US Government.

    When then Senator Meeks asked congressman Henry Cabot Lodge if he was voting for the bill replied, that he could not vote for the bill as he saw the bill as “Highly Inflationary & Detremential to the American People. ”

    Here we are 101 year’s later, once the greatest Ceditor Nation in the world and 101 year’s later the largest debtor nation in the world……and the laughing stock of the financial world. Was it worh it?

    All that was required to STOP this madness was a Constitutional Admendment requiring any MAJOR US Monetary changes go to Public Referendum.

    Does anyone think that we would have voted for the fractional reserve banking stystem & the IRS……..

    • woody188

      Do you find it interesting it was another “progressive” Woodrow Wilson that signed this junk into being?

      Is “progressive” code for global socialist?

  30. Prickly

    How can anyone that listens to Paul Craig Roberts take Axel Merk this apologist for empire seriously. On what does he base his theory that Putin wants instability. Did Putin upset him by being the heir to the empire that crushed Germany through the second world war. Why would anyone leave their money in Axels hands when he can’t even untangle the lies disseminated by American war mongers.

  31. art barnes

    Greg, your guest is another apologist for the system, a cousin to the king of the court. Making money with the crooked system claiming to be one of the good guys, nothing personal to him, just a long line of many out there that is hedging their bets, betting on both sides at the same time, that way he can win no matter what happens (I made you money or I told you so)! How you like to be in a fox hole with guys like that, watch you back side at all times to make sure which side they are on. Blaming the FED for all ills while benefiting from them at will, talk about talking out of both sides of his mouth, God, that is rich! I’m starting to get the idea that people like him will surly make the system even more corrupt than it is because they won’t put their money, etc. where their mouths are as the old saying goes. Hey Merk the Jerk, go crawl back to your court and appease your king as this commoner knows your game.

  32. votefromtherooftops

    “You know what this all leads to right? War. Wars are just economic entropy carried out to its logical conclusion” Kyle Bass

  33. Dwain

    The US government is warning a city may be destroyed by Isis? If this is the case then why open borders? Sounds like the public is being set up again for a “Hegelian redirection of blame plot”.

    Of course there will be no way to know whose is to blame if this occurs, think flight 17. But the US government has every advantage to see it happen. It justifies more central control (martial law) and provides a scapegoat for a dollar/economic collapse. The last thing sociopaths want is to be blamed and risk an off with their heads French style revolution.

    Rule of thumb. The closer we get to the financial cliff the more likely a major domestic catastrophe occurs.

    • Greg Hunter

      Dwain,
      Scary, but hard to dispute your logic!
      Greg

    • Mason

      Dwain,
      I can’t say it any better than Greg just did.

  34. Judge Roy Bean et al

    Think your blue! http://news.msn.com/offbeat/maine-lobsterman-catches-rare-blue-lobster

  35. FingersCrossed

    It’s important to hear viewpoints different than your own, but I don’t think this guest knows what he’s talking about regarding Ukraine and Russia. He thinks Putin is the aggressive one ? Hasn’t he heard about Nuland ? The neocons have been making moves on the Russian border, even though promises were made not to expand NATO.

  36. Jim Taylor

    Another good one Greg. I really liked what Merk said about not knowing the trigger till after the fact and that this market has gone up on a wall of worry so stocks could easily go down on positive news. Instead of trying to rationalize the fudnamental reasons he is simplying hte whole thing down to human psychology and the mal investment model the FED has encouraged with low interest rates. Similar to what Harry Dent and Robert Prechter have been saying.

  37. Ugly

    The main variable that we know is that USA goods will increase dramatically in price. The USD cannot keep prices lower because it is not as sought after and as strong as it use to be. Therefore, you do need cash, but you also need tangible assets that you can hold and that has value. The simple list is such as:
    1. Debt reduction
    2. Food storage of main staples like rice, beans, potato flakes, oats, peas, canned goods, etc.
    3. Water. Access to it and some water filters.
    4. Portable stoves, utensils, etc.
    5. Good sleeping bags, tents, warm clothing.
    6. Solar stuff, radio, batteries, rechargeable stuff.
    7. Silver and gold because of purchasing power
    8. Garden
    9. Knowledge
    10. Most importantly prayers and guidance
    This stuff takes money and time. I am short of this, but still going little by little. Those are tangible assets….

    • Jerry

      Ugly
      Totally agree. I make one large purchase a month. Last month it was solar lights. This month solar stove. The trick is anything that can go long term, because god knows how long we will have to endure?

      • Ugly

        Jerry.
        Yes. Solar stuff needs to be on the lists. I have some, but not enough. Solar cooker I need to get. Also, a person needs a small, compact wood stove that is easily portable. Need to cook and boil water with limited time and wood….

    • Galaxy 500

      Dude,
      Good.advice

  38. fred

    Aaron Russo and George Carlin both got too close to the truth God bless them

  39. Hubert

    I think we are approaching the endgame of the world financial system.
    My feeling is that something “big” to happen in the near future in order to reset the financial system.
    Based on the following articles it’s in my opinion not an accident that two airplanes of Malaysia airline were hit:
    http://www.paulcraigroberts.org/2014/08/25/guest-column-germany-america-frightens-us-roman-baudzus/
    It’s very ominous that the first airplane MH370 hasn’t been found until now.

    What about the following scenario ?
    http://www.breitbart.com/Breitbart-TV/2014/08/23/General-Mcinerney-Warns-Of-Possible-9-11-14-Coming

    http://etfdailynews.com/2014/08/25/could-isis-carry-out-an-attack-on-one-of-our-cities/

  40. READER

    A big crash in the USA will happen ONLY after a crash in Europe which is anticipated to start around Aug-Sept 2015. When it goes off in Europe, be worried…. til then hunker down, get fit and fitter.

  41. Silence is Golden

    There is no doubt that the USD, Stock , Bond and Real Estate markets are all con(fidence) games. There is a substantial disconnect between perceived reality and the fabrication that is evident in all of them. Nonetheless, they are what they are until that confidence dissipates or disappears.
    The old saying that “reality has a habit of sneaking up on you” is always kept at the forefront of my mind. But what is “reality” when we try to apply old metrics to a new age paradigm? (especially in a world which we are experiencing now like nothing else in history). That question rings even more true in a financial world that is totally (mis)-managed and corrupted.

  42. Thaddeus Thorn

    Greg and dear readers here is an on the ground report of the shenanigans afoot. I offer this and wonder if anyone else is experiencing similar nationally/regionally. Is this situation a blatant capital control or is a behind the scenes banker war is evolving?

    Wed. Aug 20, 2014; Thaddeus sends out two wire transfers from Suntrust Bank. One to a domestic bank for four figures (fee $25.00) ABA route number, the second an international to a close by foreign bank for five figures (fee $50.00) SWIFT route number.

    Friday Aug. 22, 2014 domestic transfer confirmed and received, international a no show.

    Monday Aug. 25, 2014 Suntrust called to say the international wire was rejected by Suntrust corresponding bank HSBC Buffalo, NY. Reason given, “Beneficiary bank does not maintain account with HSBC.” WTF!!!! All are SWIFT members and Brussels is the clearing agent. This is not a letter of credit but a wire transfer. First time in 35 years this has happened…………..new rules in place? Thaddeus has to fight to get fee outbound and return fees negated……..successful as a client has no way of knowing about the corresponding bank HSBC policy. Suntrust personnel have never seen this before either.

    Monday Aug. 25, 2014 Thaddeus takes high four figures cash which ST could barely give far under his demand account balance. Sends second domestic wire to same as first after confirming they CAN make the five figure international transfer to the close by foreign bank…..but Thaddeus has to do this in person. Advises receiving bank to call Well’s Fargo and have daily cash deliveries of high four figures for carry across border. If Thaddeus has to drive that far then all is going off book to the destination.

    And that is how easily your money can be trapped inside this Republik. No further prodding is necessary full liquidation is now on going. All surplus balances less operational funds moving outtta heeerre. Banker war, capital control it matters not. To the bullion house for conversion all goes. And hey the prices are pretty good this week.

    Wed. Aug. 27, 2014 Thaddeus to begin drive to complete all moves. This is getting to serious for me. International wires blocked for screwy reasons but most importantly branches cannot give a client 10K cash without a currency order?????

    The time for talking, commenting and complaining is now done. Action is required to save what little is left and it will be taken.

    • Greg Hunter

      Very interesting Thad! Thank you for posting this.
      Greg

  43. Finningan

    Maybe the guest is a victim of propaganda ?

    Here’s a guest article posted by Paul Craig Roberts:

    http://www.paulcraigroberts.org/2014/08/25/guest-column-germany-america-frightens-us-roman-baudzus/

  44. Sam Grant

    Hi Greg. Like most of your other viewers, I too lost interest when Axel said that Putin wanted instability in Ukraine! By extension, he’s saying that Putin actually wants NATO on his border! How insane is that? And Putin had MH17 shot down? Really? Why on earth would he do that?
    I too have been thinking about why the Powers That Shouldn’t Be are keeping gold and silver suppressed. Just my opinion, but I think it serves two purposes. One, it keeps the worthlessness of the US dollar hidden for now because gold and silver are the “snitches” on the value of fiat currencies. If gold and silver were allowed to rise to their natural levels, it would show that the USD has no value. So the suppression allows the US to continue the Ponzie scheme – for now.
    The second reason they are being suppressed, IMHO, is that the globalists are transferring power to the east. This has been going on for the past few decades. The low gold and silver prices allows the east to buy up huge amounts of precious metals. What I don’t understand, though, is governments hate the gold standard because it limits their spending. So I’m not clear on why Russia and China in particular are hoarding the pms. I guess it’s a hedge on their USD reserves for when the SHTF. Anyone have any other ideas on that?

    • Paul from Indiana

      Sam, my understanding is that when the dollar blows up, and the Chinese are left holding the bag on worthless Treasury notes to the tune of $1 trillion or so, our having sent so much gold over there at low, manipulated prices will cover the debt when the shenanigans stop and the gold price necessarily goes through the roof. Otherwise, the Chinese literally own our behinds. And maybe they do, anyway. $17.5 trillion is one helluva a nut, and it will be our undoing. Best always. PM

      • woody188

        China doesn’t hold the majority of that debt. The US citizens do as the lion’s share of the debt is in IOU’s to Social Security, followed by debt to the Federal Reserve, which loans our money to us at interest. Nice racket isn’t it?

        China and Japan hold less than $1.4 trillion dollars each. Yes, it’s a lot, but nothing compared to what they owe Social Security. SS wouldn’t be insolvent if they weren’t stealing all the funds to make war.

    • Saint Lawrence

      Sam Grant

      1. Why suppress metals…
      To chip you:
      https://www.youtube.com/watch?v=FuinaIm-kd4
      2. MH17 Russia Ukraine facts:
      https://www.youtube.com/watch?v=gWlAARb0fN4
      3. Transfere of tangible wealth and manufacturing to the East…
      1987 crash because the majority of manufacting had been transfered to
      Japan and was being offshored- thus the manuf. job core-base was eroding.
      2007 crash caused by Plutocrats-oligarchs moving their “foundations” “trusts”
      “corporations” cash and control offshore.
      4. Institutional traders control more than 95 percent of the common stock and bonds,
      examples are mutual funds, 401s etc.
      Very few people (commoners) can trade or survive without using instutional traders:
      mutual funds, ETFs, …
      Example: last time I went to the annual corp. meeting, there was about two dozen
      institional managers and one private individual stock-holder… ME.

      • Saint Lawrence

        Sam Grant
        about SHTF
        The plutocrats, oligarchs control more than you know.
        They will decide when and where or if … the sh__ hits the fan.
        They will turn off the phones and the internet if they want.
        They will turn off the power and water if they desire.
        They will authorize swat teams and metal detectors and mine sweepers.
        They plan “things” “who” and “what”: thusly controling Government,
        they are citizens
        you are a denizen. They have rights, you have decrees and orders.

        The above is my opinion only, in about 1959 or 1960 I witnessed an
        “oligarchs’ home being build. The basement had what looked like
        a fallout shelter with cement-rebar-diamonplate. I became freinds
        with one of his sons, next year. We were trading coins one day,
        and he showed me the “room”. It was a walk in vault with several
        tons of gold and silver coins.

  45. HTC

    September 26th on the Shanghai exchange… Isn’t the next blood moon September 27th? Not that anything will happen per se on that date but the timing of such things are not coincidental. Greg… I believe the Lord placed me in this job when he did and has given me employment in it until mid November is not a coincidence. What happens after that may just take the United states by surprise. Lol, not saying it will but I’ve had an overwhelming feeling that something big is coming our way since January. I’d like to say thanks for the efforts you have put into this site and I will keep you in my prayers. When this thing goes, just remember who it is that provides and sustains and that man cannot live on bread alone, but on every word of God.

    • Greg Hunter

      HTC,
      Thank you for your kind words of support. Hope you keep working and “Fear Not.”
      Greg

  46. Galaxy 500

    Greg
    Shhhh….its secert…we are doing secert surveillance of ISIS. AND there will be a.surprise party for ISIS later. But dont tell.them, its a.surprise

  47. Sam Grant

    Saint L and Paul:
    Yes, yes, yes, of course! Thanks for your info.

  48. RamessesII

    Greg – Most misinformed interviewee you have ever had.

    He may know finances (does he – 400m USD aint that much – I have a few myself) – but doesn’t understand any kind of geo-politicis.

    Otherwise Greg – your guests are stunning – this guy – not at all.

  49. Joseph

    The Ukraine/ Putin part of this interview is not important. The real point of the interview is that interest rates will remain negative for a long time and gold should do well in a negative interest rate environment.

  50. fred

    thank you people for mentioning Aaron Russo(may he rest in peace) and anyone who hasnt seen it please do yourself a favor and watch the video on you tube well worth the time

  51. Brad

    Merk just about lost me at the beginning with his take on the Ukraine situation as I would like my money managers to be reality based if I had enough extra money to hand to a professional. As it is Merk seems to be making a living for half the wrong and right reasons. He would not be on my short list….

  52. Bud Wood

    Yes, the stock markets in the USA are high. And, yes, they may crash. However, consider two things: (A.) Stocks are backed by assets; fiat money (US$, etc) are not, so stocks will generally appear to be better to hold than currency and (B.) There is a lot of money in Europe and the “safe haven” USA markets are attracting a lot of that money. When those two factors are considered, it seems to me that USA markets can go much higher.

    • JC Davis

      Bud Wood. Correct. August stocks hit its highest in 14 years.

  53. henry

    I talk to a number of very intelligent people who have know idea of what’s going on. Merk is similarly aware of the fundamentals of the real world finance but he still believes the propaganda that is broadcasted 24/7 by the main stream media. He doesn’t see that there is a game behind the games, a war behind the wars. Even though he has pickup enough inconsistencies in the official lies so that he can make money, I don’t think he wants to admit that the entire system is inconsistent. If a smart person who never has critically thought about the stories told by the talking heads and doesn’t want to believe that somebody is lying, and his predictions agrees with those who are aware of the propaganda streams then take this as an independent confirmation of the danger ahead.

Leave A Reply

Please Note: All comments are moderated and manually reviewed for spam. In turn, your comment may take up to 24 hours to be posted. USAWatchdog.com also reserves the right to edit comments for grammar and spelling errors.

Your email address will not be published. Required fields are marked *