{"id":32972,"date":"2012-10-17T01:00:53","date_gmt":"2012-10-17T05:00:53","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/10\/marc-faber-the-fed-will-destroy-the-world\/"},"modified":"2012-10-17T01:00:53","modified_gmt":"2012-10-17T05:00:53","slug":"marc-faber-the-fed-will-destroy-the-world","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/10\/17\/marc-faber-the-fed-will-destroy-the-world\/","title":{"rendered":"Marc Faber: The Fed will Destroy the World"},"content":{"rendered":"

By MoneyMorning.com.au<\/a><\/strong><\/p>\n

America\u2019s central bank, the Federal Reserve<\/strong>, will eventually destroy the world economy<\/a>, says respected Swiss investor Marc Faber.<\/p>\n

The only consolation is that its crazy policies give investors an easy way to get rich.<\/p>\n

<\/span><\/p>\n

In an interview with Bloomberg<\/em>, shortly after the Fed launched its third bout of quantitative easing (QE), the 66-year old Faber warned that \u2018eventually we will have a systematic crisis and everything will collapse\u2019.<\/p>\n

QE damages the economy and creates bubbles, says Faber. \u2018There is a huge misconception and fallacy that money printing can actually improve the rate of employment because the money flows down into the system.\u2019<\/p>\n

But what really happens, says Faber, is that the extra money \u2018goes first into the banking system and into financial institutions, into the pockets of well-to-do people\u2019.<\/p>\n

Another side effect of QE is \u2018increased government involvement in the economy and we have the government growing with its regulation and legislation that stifles economic development\u2019.<\/p>\n

More Money Printing a Certainty<\/center><\/h3>\n

Faber, who writes the Gloom, Boom and Doom<\/em> newsletter, believes that more money printing is a certainty. Even if Ben Bernanke \u2013 the Federal Reserve chairman \u2013 was to leave, his replacement would also be a \u2018money printer\u2019 while central banks in other parts of the world are just as bad.<\/p>\n

\u2018The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down.\u2019<\/p>\n

The plus side of all this, says Faber, is that it is easy for investors to back the right assets. He thinks \u2018equities are a better space to be in than bonds\u2019, and within equities he favours the cheapest.<\/p>\n

\u2018I bought equities in Portugal, Spain, Italy and France because they were unbelievably distressed.\u2019 He also thinks the Chinese stock market looks depressed. But he warns investors to steer clear of America noting that it \u2018has massively outperformed European markets [and] Asian markets\u2019.<\/p>\n

Gold<\/a> should be another beneficiary, says Faber. \u2018That the trend for gold prices will be steady, but the trend for the dollar and other currencies will be down. In other words, in dollar terms the price of gold<\/a> will trend higher. How high it will go? You have to call Mr Bernanke.\u2019<\/p>\n

James McKeigue<\/strong><\/p>\n

Contributing Writer, Money Morning\u00a0 <\/strong><\/p>\n

\u00a0<\/strong>Publisher\u2019s Note: <\/em>This article originally appeared in MoneyWeek<\/em><\/a><\/p>\n

From the Archives\u2026<\/em><\/strong><\/p>\n

The Biggest Graphite Find in Decades Comes With a Catch<\/a><\/p>\n

12-10-2012 \u2013 Dr. Alex Cowie <\/strong><\/p>\n

Don\u2019t be Fooled by Banker\u2019s Remorse<\/a><\/p>\n

11-10-2012 \u2013 Kris Sayce<\/p>\n

Why the Australian Stock Market Could Fall 400 Points in \u2018Weeks\u2019<\/a><\/p>\n

10-10-2012 \u2013 Murray Dawes<\/p>\n

Why the Hunt for Strategic Minerals took me to Holden in Port Melbourne<\/a><\/p>\n

09-10-2012 \u2013 Dr. Alex Cowie<\/p>\n

What\u2019s so Important about Gold?<\/a><\/p>\n

08-10-2012 \u2013 John Stepek<\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nMarc Faber: The Fed will Destroy the World <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au America\u2019s central bank, the Federal Reserve, will eventually destroy the world economy, says respected Swiss investor Marc Faber. The only consolation is that its crazy policies give investors an easy way to get rich. In an interview with Bloomberg, shortly after the Fed launched its third bout of quantitative easing (QE), the 66-year … <\/p>\n

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