No Such Thing as a Safe Asset Anymore-Axel Merk

No Such Thing as a Safe Asset Anymore-Axel MerkBy Greg Hunter’s USAWatchdog.com  (revised)

Money manager Axel Merk says, “There really is no such thing as a safe asset anymore. . . . If you hold cash, the purchasing power of your cash is at risk. . . . What we do is try to get out of the dollar. We buy gold, we buy other currencies.” Mr. Merk contends, “The reason why we like gold is because there is too much debt in the world. The Europeans have experimented with austerity, but the rest of the world prefers the printing press.” According to Mr. Merk, the fear trade is turning into inflation fears. Merk says, “Inflation expectations have been coming down. In fact, whenever inflation expectations come down, the Fed has printed more money, not less money. So, we don’t believe in the ‘taper’ story.” Mr. Merk goes on to say, “Ultimately, if we allowed market forces to play out, I’d sell my gold. But, because I do not think Paul Volcker is going to succeed Bernanke . . . I do like my gold. We have been buying in our funds.” Join Greg Hunter as he goes One-on-One with Axel Merk, Portfolio Manager and Founder of Merk Investments.

Comments
  1. jc the oligarch slayer

    Greg. pleasant interview. I have never seen a bull tiptoe threw the tulips like the world financial markets are doing today. Making money by moving it around works for a while, but those that lurk in secret to shed blood are lurking to shed there own blood. I would say only those with money to burn are investing into stocks, treasuries, or bonds. The only true security is God, land, and guns. Stock profit is just stealing another mans failure. Thanks.

    • Greg

      Thank you JC and Jerry for the comments and support.
      Greg

  2. jerry

    Very interesting interview Greg. This is the first time I have heard the term “Zombie Banks”. Is it the same thing as a “Zombie Government” like we have now? Maybe if they’d pull that life support called “MONEY PRINTING” we’d find out how really dead our Government is. The truth is they can’t stop printing. There isn’t enough tax money coming in to sustain the amount of debt this Government has rang up. But then again, who cares, if you’re planning on collapsing the system anyway? All that debt will just go away. The big question is, what will take its place? Thanks for keeping it interesting Greg.

  3. Derrick Michael Reid

    Hunter is a patriot. Hear Hear!!
    From HQ, the latest. Hot off the press. Yours Derrick Michael Reid
    http://totalcontrol.blogtownhall.com/2013/07/10/usa_fed_bank_is_following_the_script.thtml

    • Greg

      Thank you Derrick for your support.
      Greg

  4. Derrick Michael Reid

    I bet Gerald Celente, of TrendsResearch, a victim of Corzine and MF Global would agree totally with Alex Mark.

  5. Brandon

    Greg,
    I was just curious about how you think this whole mess will play out and what kind of time table we are looking at. I know everyone has a little different idea of how things will play out but was just wanting your take. Thanks again for the great site.
    Brandon

    • Greg

      Brandon,
      You either need to prepare for some sort of financial crisis and or inflation. I was telling a friend of mine last night that things are so complicated that the economy is very fragile. Therefore you need to be in some sort of preparedness at all times. All that is holding the economy up (for the most part) is manipulation and the Fed printing $85 billion a month is the biggest manipulation out there.
      Greg

  6. Mars

    This is from a William Kaye interview at King World News: Kaye: “Reading between the lines, and you don’t have to read too much between the lines, it’s all a farce. The gold is gone. It’s been hypothecated and rehypothecated. It’s gone. Not only do the Fed and the U.S. Treasury not own 8,000+ tons, they probably own nothing.”

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/9_Game_Over_-_Its_All_A_Farce,_The_Fed_%26_German_Gold_Is_Gone.html

  7. Al

    Interesting interview with Axel Merk and as usual Greg Hunter asks some very pointed questions. Mr. Merk mentioned more than once that he believes the fed is trying to “do the right thing” to keep this thing together. I take exception to that as the fed has destroyed 98% of the purchasing power of the dollar since it’s inception in 1913. That seems to be NOT “doing” much of anything but to destroy our savings through blatant inflation. Where the heck did that 98% go? My fathers first brand new home in 1954 cost him $5,900 in a small suburb of San Diego Ca. When will the last 2 cents be taken? Very soon I would think. Nice job Greg————————-

  8. Nichole

    Thanks for interviewing Axel! I enjoy listening to him.

    We don’t have a crystal ball…and given the complexity, would we really want to know the outcome if we did? Things are bad meanwhile the mainstream media continues on with the American Fairytale.

    This is my first major down cycle as an adult and much as I would love to scoop up “deals” from all this stupidity I’m going to keep it simple. I focus on survival and wealth preservation. I don’t speculate and take risks chasing mediocre yields.

    My approach to this economy is very basic. Pay off debts. Run a small part time business to “optimize” taxes. Eliminate unnecessary spending and only invest in items that will pay me back in the form of reducing my future costs. That is worth more than any laughable yields out there. We all loose too much control in these standard investments.

    If I can’t sink my teeth into it…I don’t need it. If it doesn’t add to the betterment of my health and well being I don’t need it either. I’m starting to sense sort of a “back to basics” revival coming. Moving out of the cities to reduce costs, food production, and overall preparedness themes. Seems like a no fail bet in any market!

    • droidX-G

      What a great philosophy !

  9. droidX-G

    I see a recurring trend…there are no safe paper assets

  10. Mars

    Greg here is part 2 of the interview, he seems to have a reliable background. What do you think? Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, and also ran money for George Soros, had this to say in part II of his remarkable interview. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/9_William_Kaye_-_The_Savage_Gold_War_Behind_The_Scenes.html

  11. Albert Tesla

    Very intelligent man, the way he described the dollar as not really something of quality but liquidity made a TON of sense once I heard him explain it from that perspective.

    I like his ideology that the world is not going to enter a financial apocalypse such as how Gerland Celente and others paints it all.

    This man seems very logical, the way he described the employment issue vs Obama Care was quick, direct, and SIMPLE to understand, Axel is very good in explaining complex issues quickly and sufficiently.

    Greg, my only request is next time Axel is on your site maybe perhaps you should ask him more detailed orientated questions rather then very general topics. I don’t mean to tell you what to do, you run this site fabulously. I’ve been following your site for quite some time and i must say Axel strikes me as having a very different persona then your other guests hes very informative and “scientific” if you will rather then having a “hollywood” act (aka celente)

    Keep up the good work and thank you for exposing and sharing genius minds with us.

    • Greg

      Albert Tesla,
      Thank you for your comment.
      Greg

  12. jerry

    Greg I guess my only question after listening to Axel Merk a second time is this. If printing 85 Billion Dollars a month, or 850 Billion Dollars a year, and dumping it into the economy doesn’t really effect the overall economic foundation of how a free market is supposed to work, then why stop at 85 Billion? Why not print 200 Billion? Mathematically it makes no sense to me. And nether does it to these people. http://demonocracy.info/infographics/usa/derivatives/bank_exposure.html

  13. Allen Ols

    Greg
    Enjoy your site tks

    The guy is weak, no bite, I would rather listen to william kaye as advised above coment

    But thanks

    Al

  14. JRMFL

    Dollar POOF. Well timed….

  15. Jim H

    Happy Thursday Greg (or Friday for me since being cut back to 32 hours per week beginning the 8th of July).
    We in the “Military Industrial Complex want to do our part”. Good interview, goes well with this.
    http://www.globalresearch.ca/excess-reserves-at-the-federal-reserve-one-of-the-biggest-financial-scams-in-history-a-whopping-us1-794-trillion/5339221

    Enjoy your weekend.
    !

  16. Sanjay Kashkari

    You know something ? You all should be appreciative that the government will do all that is required to save you people even if it means pumping more money into the economy so you can eat and have shelter over your heads. All we ever hear on this thread is how the government is manipulating the economy and taking advantage of everyone. Well guess what. Nothing is perfect, but at least the government is doing what it can to ensure all are taken care of.

    • ncdirtdigger

      Mmmmmm, kool aid tastes gooooood.

    • Saq

      LOL…..(pause)…..LOL. In case you haven’t noticed, the Gov has gone rogue.

    • George

      From my analysis, the only people the govt is protecting are bankers

  17. wd denis

    Greg,

    I still don’t get these employment numbers; if there are 102 mil on food assistance how can there be a recovery? Along with 76-80% of Americans living paycheck to paycheck. What am I not seeing.

    It makes no sense to me. This is not an expanding economy. They talk about an average of 202,000 jobs added every month since Jan. HOW? WHERE? In March 636,000 people left the work force. What about them?

    I worked whole sale lending for 7 years before crash and I am getting that same sinking feeling again.

    Can they MANIPULATE these numbers that easily?

    Thanks

  18. Art

    Good interview, Greg. Need to get him back periodically.

    • Greg

      Art,
      I hope he’ll come back, and I will ask Axel to come back!!
      Greg

  19. Derrick Michael Reid

    Safe Assets? The guy must be married. 😮
    The engineer problem solver is at it again.
    http://totalcontrol.blogtownhall.com/2013/07/11/usa,_one_nation_under_god.thtml

  20. Rishabh Dave

    Greg,

    I understand that you wont allow my posts, but I can tell . . . ######################################################################################################################################################################################################################################################################################### This is Greg Hunter and I have redacted most of this comment.

    • Greg

      Rishabh Dave,
      You can post a comment if you give a verifiable real name. My work history and resume is on line and I expect to see the same from you.
      Greg

    • Rishabh Dave

      It isnt important for you to post my comments. Just know that you will not make money as a traitor buying gold. We have you and all gold bugs every which way by your short and curlies.

      • Greg

        Rishabh Dave,
        I’ll say this for the last time. Man-up and post a real verifiable name and you may post comments here. It is that simple. By the way, it is you who betrays this country with you fraudulent, illegal and immoral activity.
        Greg

        • Rishabh Dave

          “post a real verifiable name” ……..

          Well then, I guess you would like my address and telephone number ?

          How about a public debate instead ? You can side with gold and I will champion the great United States of America !

          • Greg

            Rishabh Dave,
            A resume will do. You can redact your phone number and address. By the way, I side with the United States and the U.S. Constitution. I love this country. I will not debate with an anonymous person. As I have said before, man-up and own your words.
            Greg

          • George

            If you are a championing the USA and the current government, the country needs a transfusion of new blood

          • Devils Advocate

            Dave (AKA Goldman Sachs) vs. Hunter (AKA an awake citizen) my money is on hunter. You can only wave the flag and make inflammatory declarations for so long. Facts, intellect, reason, listening to the opponent’s perspective and responding to issues is what wins debates. My money is on Hunter. Again, why even respond? Most people drawn to this site can spot a troll a mile away. Don’t feed the trolls.

          • Devils Advocate

            I saw this on survival blog. “If all mankind minus one were of one opinion, and only one person were of the contrary opinion, mankind would be no more justified in silencing that one person, than he , if he had the power, would be justified in silencing mankind….. The peculiar evil of silencing the expression of an opinion is, that it is robbing the human race; posterity as well as the existing generation;those who dissent from the opinion,still more than those who hold it. If the opinion is right, they are deprived of the opportunity of exchanging error for truth; if wrong, they lose, what is almost as great a benefit , the clearer perception and livelier impression of truth, produced by its collision with error.” – John Stuart Mill, On Liberty

  21. Russ Smith, Caliornia

    Hi!, Patrons Of USAWATCHDOG.COM Et Al:

    Well, people here we are geting to the end of what the gold industry describes as the Summer Doldrums and various predictors are assessing that gold is begining its’ turn-around market phase. The broblem though in my mind is that there shouldn’t be a paper market price for gold but, according to OUR Constitution’s Article 1; Section 10, gold and silver coins should have always been our FREE/FREEDOM money in lieu of OUR debts of any kind without any paper money shenanigans possibilities disrupting the intrinsic value of OUR specie only money but here we are together now in the middle of a Paper Aristocracy monetary mess nobody can fathom enough to solve it or it would have been nipped in the bud decades ago right? We have all fallen for the false God of paper money; as outlined decades ago by Daniel Webster who quipped: “Of all the contrivances every designed for cheating the laboring classes of mankind, none has been more successful than that which deludes them with issues of fiat, I Owe U Nothing, irredeemable paper money!” Thus, Daniel Webster long ago declared the potential death of the FED today promogated by the late Senator Dr. Ron Paul but the FED as we know is far from dead but instead actively destroying all of Western (UN) Civilisation with its’ irredeemable paper money. Surely, Ben (Helicopter Ben) Benanke is Hitler’s, Stalin, and Musulini’s kind of guy? These 3 men took humanity to hell too in a hand basket didn’t they which would make Karl Marx smile in his grave huh?

    RUSS SMITH, CA. (One Of Our Broke Fiat Money States)
    [email protected]

  22. Russ Smith, Caliornia

    Hi!, Patrons Of USAWATCHDOG.COM Et Al:

    We go from interview to interview here round and round we go but where this all stops nobody knows? However, in my role working over 40 years with biological controls in agriculture, there’s one thing in my mind for sure and that’s the completeness of TRUE biocontrols. Last week on the internet was run a story about young couples all across OUR nation are suspending being parents; due to the ineptitudes of OUR economy. Those future unborn taxpayers will have their say won’t they and no mattter what the economic climates turn into over the insuing years huh? No government in all of human history has survived without taxpayers. How long in the tooth this trend regarding unborn taxpayers already is isn’t knows but, if my memory serves me correctly, a generation runs around 35 years. If we don’t as a Nation have children we will have no need for all the present classrooms will we? My knowledge of biocontrols instinctively informs me that without a future that includes children, there can be no longer term economic recovery can there? So, readers, please U go figure it out. It shouldn’t be too hard on a FREE 200 billion cell computer brain we each inherit should it? Do we truly have a future without children? Here we are nit picking about whether this or that economic policy can save OUR Nation and bring it back to a status of recover; but all while young married couples refuse to have the babies who can carry such projects forward into a dead eoonomic future? It must be my paranoia huh?

    RUSS SMITH, CA (One Of Our Broke Fiat Money Economic States)
    [email protected]

  23. David Talmage

    Date: August 1, 2013

    Since all that is necessary for the government to create money is for the government to purchase someone’s assets which then get deposited in the sellers bank account. The following exists with fractional reserve banking requirements of 10%. When the government buys 85 billion in bonds seller then deposits that into a bank account. This raises the reserves of that bank by 85 billion. That bank can then create 76.5 billion in loans. Once that loan is made that borrower will buy something that costs 76.5 billion and the person selling that object will deposit that into the bank. This raises the reserves of that bank and so on.

    So by the time this works its way through the economy a single purchase of 85 billion in bonds can create as much as 850 billion in new money.

    Note this is equivalent to the 2009 stimulus every month.

    So, in addition to the 2009 stimulus being spent since it was voted into law and since the spending of the federal government did not go down in 2010 from 2009 by 850 billion. That means the 850 billion stimulus is being spent every year since. So now in addition to this massive spending, we now have the federal government stimulating the economy at 850 billion a month which dwarfs the massive 2009 stimulus.

    When does it stop!

    Here are the first 5 rounds of stimulus from a 85 billion purchase.
    85,000,000,000
    76,500,000,000
    68,850,000,000
    61,965,000,000
    55,768,500,000

    after 246 loans the sum of all the loans is
    849,999,999,995

    Date: August 3, 2013:
    I decided to look up the total assets that the federal reserve has purchased and determine how much money could be created with this amount of bond purchases. I found that answer on:

    http://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

    I select the chart selecting assets of the federal reserve.

    When Obama took office the federal reserve owned $512,274,000,000 of assets.
    A couple of days ago assets were $3,295,892,000,000.

    This is a 6 fold increase or 2,783,616,000,000 or 43.5% annual increase Quantitative Easing since Obama took office. With this additional purchase of federal bonds, Obama’s federal reserve has injected a potential $27,836,160,000,000 in additional new money that banks can loan out.

    For some reason the banks are not creating this money. Maybe there is no opportunity to make money. The currency in circulation from same page on the selected liabilities graph has only gone up from $892,223,000,000 to $1,197,424,000,000. A 6.58% annual increase in the amount of dollars in the economy. They have the authority to increase the money supply with fractional reserve banking by $21,208,430,000,000 a 1771% increase. This is based on sum of deposits of institution.

    This could cause price of gasoline could go from $3.70 a gallon to $65.53 a gallon.

    Hyperinflation here we come. This certainly leaves me wondering about Obama and democrats .

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