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Merk In the News: Deutsche Welle
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Portfolio manager Axel Merk tells DW US dollar's 'exorbitant privilege' at risk

Portfolio Manager Axel Merk told DW:

"...'Nobody knows where that can end,[...] We took the risk with Lehman, and it was pretty bad, but I don't think we've seen anything in comparison with what could happen if the US was truly to decide to not pay on time.'

'Generally speaking the US had - I'm talking about the past here - been reasonably prudent with how its fiscal affairs were run,' Merk said. 'They have decided to be a tad more strategic, Merk said. '[They're] buying real assets - buying assets that help them with their energy needs and food needs. But also on the treasury side, [they're] buying Canadian, eurozone, or Australian securities..."