In the News: Financial Times

Eurozone Crisis: Hope for the Best, Plan for the Worst, portfolio manager Axel Merk writes in an Op-ed for the Financial Times

"...Indeed, central bankers have ramped up their efforts, seemingly planning for the worst. The Fed introduced a currency swap line to alleviate US dollar funding concerns in Europe. The ECB conducted its 3-year long-term refinancing operations (LTROs). The Bank of England provided another dose of quantitative easing. The Bank of Japan pursues its newly anointed inflation target. These are all variations of printing money...

This is not just a European problem. Look at the proposed 2013 US Budget and it becomes clear that, without the encouragement of the bond market, policymakers may have little incentive to pursue fiscally sustainable policies…"