"Fed will print and print and print until the final crisis," says Marc Faber
Source: BI-ME , Author: BI-ME staff
Posted: Tue August 3, 2010 8:44 pm

INTERNATIONAL. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor said the US Federal Reserve will create a "final crisis" by continuing to print money because it is underestimating the strength of the economy which shows no signs of stenghtening but signs of weakening everywhere in the world.

Speaking to CNBC Worldwide Exchange Tuesday in a live interview from Zurich, Faber said: " They will print and print and print until the final crisis wipes out the entire system."

Investors should have listened to me already six months ago when I wrote that the Fed will continue to monetize. They will never let up", Faber said.

Asked if the Fed policy is driven by concerns about deflation above all, Faber said: " They are very bad forecasters of economic events".

That was the case with Mr Greenspan but "Mr Bernanke is in the same boat. He has no clues what the economy is doing," Faber added.

Explaining his argument, Faber went on:" They misread in 2007 the severity of the forthcoming economic crisis and then they misread in the last few months the strength of the economy, which shows no signs of strenghtening but signs of weakening everywhere in the world."

I would therefore argue that with the Fed and its policy, significantly more quantitative easing will be coming , he added.

Asked if recent moves in China could be interpreted as diversification away from US dollar assets, Faber said US Treasurys are likely to suffer because of the Fed's policy.

"Everyone in the world has somes concerns about the ultimate value of the Dollar and of the value of US bonds." If the fiscal deficits stay at these levels and in my opinion they are likely to increase, over time obviously you will have a credit problem in the US, he added.

While this will not happen in the next three years, the implications are that diversification out of Us Dollar Treasurys is a good thing, he noted. This is why he is "not all that negative" on stocks.

And investors who share his bearish view would be better off holding stocks instead of bonds in their portfolios, Faber said.

Equities, rather than bonds, "should be part of your porfolio if you are bearish about the long term," he said.


Marc Faber expects a return to massive quantitative easing by October

Marc Faber says if the Dow falls below 1,000, buy a self-sustainable farm surrounded by high voltage fences

I buy gold, I don't know what else to buy, says Marc Faber

Marc Faber warns of expropriation if gold prices explode

I own my physical gold and I will never sell it, says Marc Faber

We already have a new gold standard, says Marc Faber

'Buy some gold every month' as protection against falling currencies, says Marc Faber

Marc Faber sees 'no huge downside risk for gold,' more sovereign defaults

George Soros boosts gold ETF stake despite 'ultimate bubble' claim

Marc Faber says 'we are all doomed,' predicts cyber wars

'The risk is really not to own any precious metals at all,' says Marc Faber

Is gold in a bubble? George Soros reignites the debate

Marc Faber, George Soros agree gold prices set to rise




date:Posted: November 20, 2014
INTERNATIONAL. The trajectory of Japan's economy has much to teach us about the wisdom of Keynesian policies. Those who are not blinded by left-wing dogma should take a good look at where the road of permanent stimulus ultimately leads.
date:Posted: November 20, 2014
INTERNATIONAL. The path to the acceptance of the participatory approach to development was forged, through trial and error, over several decades until the 1990s, when its global recognition by development practitioners became well-established.
date:Posted: November 20, 2014
INTERNATIONAL. There is a high degree of uncertainty over how the Iranian negotiations and the OPEC meeting will play out, but the end of November will be hugely important for energy markets.
INTERNATIONAL. Both countries posted freedom scores of 8.1, according to the annual Economic Freedom of the Arab World report published by the Fraser Institute. Bahrain dropped from first place last year to third place and a score of 8.0 in this year's report, which is based on 2012 data, the most recent available.