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Wednesday, July 17, 2013

This Will End in Disaster

It’s going to end in disaster. But it’s not going to end at the hand of central bankers because I know very well how they think.... They are not going to tighten monetary policies any time soon. They are in the driver’s seat in the sense that they will always find an excuse to print more. They will say, ’OK we have to increase the purchases of assets because now the yield on Treasury bonds has gone up substantially, from less than 1.5% on the 10-Year note a year ago, to 2.68% as of today.’ So they will say, ‘That may damage the economy, so we have to buy more assets.’ And if they do that then the inflation rate may pick-up, and real wages may decline even more. Then they will say, ‘Well, we didn’t do enough because the population isn’t doing well.’ They will always find an excuse to print more. And as you said, it will end in disaster. There is no doubt about that. - Marc Faber via a recent King World News interview, read the full interview here:

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.


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