Merk Investments has ranked the attractiveness of the currencies of each G10 country based on the monetary and fiscal policies of each country and the strength of each country’s economy to come up with what they call the Merk Currency Score™. This Score should prove invaluable in supporting investment decision-making across countries and regions. Go here to see where your country ranks. Words: 367
Axel Merk, Kieran Osborne and Yuan Fang (http://www.merkfunds.com/) have recently published the Merk White Paper – Monetary Policy and it can be found here in its entirety compliments of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!). This paragraph must be included in any article re-postings to avoid copyright infringement.
By way of introduction to the linked White Paper, the authors state, in marginally edited excerpts, that:
We have developed a score for each currency within each category, that is, a Merk Monetary Score™, a Merk Fiscal Score™, and a Merk Economic Score™ with the aggregate of those metrics being an overall Merk Currency Score™….
Merk Monetary Score™
The focus of the Merk White Paper – Monetary Policy is to rank currencies based upon a monetary policy framework. Within this category we focus on specific metrics that we consider to be bellwethers for long- and short-term economic health, price stability and ultimately, to have a significant implication on relative currency strength or weakness. Those specific metrics are:
- the consumer price index (CPI),
- the producer price index (PPI),
- market-based expected inflation measures of each central bank and
- the change in the size of a central bank’s balance sheet, as a proxy for the absolute change in money supply.
A breakdown of the above overall monetary policy assessed components for the G10 currencies to arrive at our Merk Monetary Score™ can be seen here.
[In summary,] based on monetary fundamentals within the G10 universe, we find that, as of March 31, 2011, the Australian dollar and the Canadian dollar appear the most compelling two currencies based upon our Merk Monetary Score. Conversely, our methodology ranks the Swiss franc and British pound as the two least attractive currencies within the G10 universe based upon monetary fundamentals. [The rankings of the currencies of said G10 country currencies are as follows:
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- New Zealand
- Euro area
- United Kingdom
Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
There is a trio of currencies that you must include in your portfolio today because they operate on an entirely different playing field than the U.S. dollar and the euro and, as such, are set to undergo huge revaluations in the coming months. Without further ado… Words: 855
Paper money was first used by the Chinese during the Tang Dynasty in 806 AD–500 years before Europe began printing money in the 17th century. It would be another 100 years before America started circulating a national paper currency…. How familiar are you with banknotes from around the world?
Considering the fact that you can fool some of the people some of the time but you cannot fool all of the people all of the time, is it any wonder millions, both through the Tea Party demonstrations and now the Occupy Wall Street Movement across the country and elsewhere around the world, are protesting the abysmal scourge that fiat currency has brought upon us as a result of that fateful day back on July 25th, 1965. To appreciate the significance of that historic day we must fully understand what fiat currency is and why such a concept is about to implode and this article does just that. Words: 1372
Part of being a good contrarian investor is constantly looking beyond your investment “comfort zone” and trying to find less-followed opportunities… [and the Canadian stock market represents just such an] opportunity. Here’s why. Words: 465
Canada has the lowest total debt-to-GDP ratio of the world’s 10 largest economies (Australia is 2nd best, Germany 3rd and the U.S 4th) while the U.K. and Japan are 9th and 10th but when such debt is broken down by sectors the findings are quite different. Let’s take a look. Words: 800
Canada’s size, political structure, and culture will enable it to – properly governed – be more resilient to world economic problems than any other developed country. [For one thing] we don’t have the extent of political polarization that… [is currently the case] in Washington…and now exacerbated to new levels in these difficult economic times – and that will, in my view, cause the U.S. to continue down an increasingly rocky economic road. [Below I put forth Canada’s economic advantages and disadvantages.] Words: 1026
In this hostile financial climate, long-term investors must now give more thought than ever to capital preservation and sustainable growth… and Canada’s fortunes will surprise many. Its uniquely bifurcated economy can serve as a bridge from the developed to the developing world – at least for investors wise enough to cross it. Words: 776
It seems that Americans (and particularly those who vote Republican) are always complaining about how much they pay in personal income taxes. Frankly, however, they have absolutely nothing to complain about when compared to what the citizens of Canada, Australia, the U.K., New Zealand, Germany, Belgium and almost all other countries pay. Here’s a list of 20 countries of note showing what their effective tax rates are at the equivalent of USD100,000 and USD300,000 for comparative purposes. Words: 510