Euro: Safer than the U.S. Dollar?

Which one is safer: the euro or the U.S. dollar? Before jumping to a conclusion one way or the other, let’s look at different sides of the respective coins. Which one is safer: the euro or the U.S. dollar? Before […]

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Debt Ceiling Jeopardizes Dollar’s Reserve Status

U.S. Treasury Secretary Geithner has warned that delays in extending the U.S. debt ceiling may cause irreparable harm. U.S. Treasury Secretary Geithner has warned that delays in extending the

ECB Pushing Greece Over Brink

Disagreements on how to address Greece's reform process boiled over this week when European Central Bank (ECB) President Trichet walked out of a meeting. Trichet warned if Greece

Merk Commentary: ECB – Nothing New, Nothing Special, Not a Problem, Absolutely Not

After raising interest rates by 0.25% a month ago, the European Central Bank (ECB) left interest rates unchanged at today's meeting of its Governing Council. After raising interest rates

The Dollar: It’s Payback Time!

It’s payback time for Ben Bernanke, the chairman of the Federal Reserve (Fed). In some ways, this should neither surprise, nor scare anyone. Unfortunately, however, it might do

Merk Commentary: Fed Wants Even Higher Inflation

Today, the Federal Reserve Open Market Committee (FOMC) announced it will continue to purchase government securities as previously announced ("QE2"), including reinvesting principal payments from its holdings. Today,

U.S. Dollar – Review and Outlook

We believe that continued U.S. dollar weakness may be a consequence of the diverging monetary approaches central banks are taking around the globe. While many international central banks

ECB Takes Away Punch Bowl

Today, the European Central Bank (ECB) raised its main refinancing rate by 0.25% to 1.25%. Today, the European Central Bank (ECB) raised its main refinancing rate by 0.25% to

Does a Weak Dollar Cause Inflation?

Should investors be concerned that a weaker U.S. dollar causes inflation? The price at the gas pump should be a stark reminder that a weaker dollar may contribute

U.S. Government: Evermore Reliant on Foreign Investor

Despite the Fed recently surpassing China as the largest owner of U.S. government debt, the U.S. remains heavily reliant on foreigners to fund the government’s ongoing fiscal largess.