Saturday, September 15, 2012

Marc Faber: "The Monetary Policies of the United States Will Destroy the World"


Marc Faber, publisher of the Gloom, Boom & Doom report, talks on September 14, 2012, about Federal Reserve policy and his investment strategy. Faber, speaking with Betty Liu on Bloomberg Television's "In the Loop," also discusses gold prices and the property market. (Source: Bloomberg)

Selected Quotes:

"Even if Romeny wins the election, the next Fed chairman will be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down. And I don't like bonds. I don't particularly like equities, but I think equities are a better space to be in than bonds.”

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"I own corporate bonds. I bought some bonds from Kazakhstan because Kazakhstan economically is a much sounder country than the United States or any European country."

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"The fallacy in the United States is to think that this will go to the man on the street. It won't. It goes to the Mayfair economy of the well-to-do people and boosts asset prices of Warhols…Very happy. Very good for the Fed. Congratulations, Mr. Bernanke. I’m happy. My asset values go up but as a responsible citizen I have to say the monetary policies of the U.S. will destroy the world."

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"There is a huge fallacy and assumption that money printing can actually improve employment. It goes first into the banking system and into financial institutions, into the pockets of well-to-do people. If you drop money into my pockets and you have at the same time increased government involvement in the economy and we have the government growing with its regulation and legislation that stifles economic development. I don't want to build a new business. But what I may do is look around the world, where are the distressed assets. So I will go and buy existing assets, takeovers. But takeovers don't add to employment. They destroy employment. "

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