On page 8 in http://arxiv.org/pdf/hep-th/9704139v1.pdf David Gross makes the following comment:
"This theory [QCD] has no ultraviolet divergences at all. The local (bare) coupling vanishes, and the only inﬁnities that appear are due to the fact that one sometimes expresses observables measured at ﬁnite distances in terms of those measured at infinitely small distances. "
1) First of all, is this statement even correct?
2) Now my main question is: certainly, a naive application of the Feynman rules and regularization leads to non zero counterterms. (See chap 16 of Peskin). So what scheme could one work in such that the counterterms vanish?