In the News: USA Today
The odds of the government curing its debts about as high as all of us flying to the moon, portfolio manager Axel Merk tells USAToday.
" 'Every day, for example, the U.S. needs to borrow $15 billion to fund the deficit,' says Axel Merk, portfolio manager of the Merk Hard Currency fund. 'Someone has to buy all that,' he says. 'More important, the U.S. has to repay it.' [..]
'If you have debt, you love inflation,' says Merk. 'Workers would get bigger raises, home prices would increase, and 30-year fixed-rate mortgage payments would remain the same.' [..]
Will the nation cure its debts by raising taxes and cutting spending?
'Sure,' says Merk. 'And then we will all fly to the moon.' Otherwise, he says, 'Inflation is the answer.' "
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