In the News: The Hill

U.S. government debt has been managed in recent years like an adjustable rate mortgage, portfolio manager Axel Merk tells The Hill

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Axel Merk, president and chief investment officer of Merk Investments, based in Palo Alto, Calif., warns that interest rates could shoot up if Obama and Congress fail to rein in deficit spending.

'The concern is a very real one. U.S. government debt has been managed in recent years like an adjustable rate mortgage,' he said. 'A lot of U.S. debt is at the short end of the yield curve.'

Merk said the bond market has cut the federal government slack...But he warned investors don’t have limitless patience.

'The margin for error is coming down,' he said.