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Home > About Us > In the News > April 15, 2011

In the News: USA Today

Current account deficit makes U.S. dollar vulnerable, portfolio manager Axel Merk tells USA Today

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The chronic deficit argues for a lower dollar in the long term, says Axel Merk, manager of the Merk Hard Currency fund. 'The absolute deficit is not a good predictor of the exchange rate,' Merk says. 'What is relevant is whether it finances it [deficit] from foreigners.' Japan’s huge deficit, for example, is largely financed by the Japanese; the U.S. relies on foreigners to buy its debt...."

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