Marc Faber Warns "The Endgame Is A Total Collapse -
But From A Higher Diving Board Now"
Faber on the reaction that there's
going to be no taper for now:
"My view was that
they would taper by about $10 billion to $15 billion, but I'm not surprised
that they don't do it for the simple reason that I think we are in QE
unlimited. The people at the Fed are professors, academics. They never worked a
single life in the business of ordinary people. And they don't understand that
if you print money, it benefits basically a handful of people maybe--not even
5% of the population, 3% of the population. And when you look today at the market
action, ok, stocks are up 1%. Silver is up more than 6%, gold up more than 4%,
copper 2.9%, crude oil 2.68%, and so forth. Crude oil, gasoline are things
people need, ordinary people buy everyday. Thank you very much, the Fed boosts
these items that people need to go to their work, to heat their homes, and so
forth and at the same time, asset prices go up, but the majority of people do
not own stocks. Only 11% of Americans own directly shares." On whether interest rates are held down when the Fed continues this type of policy:
"On September 14, 2012, when the Fed announced QE3, that was then extended into QE4, and now basically QE unlimited, the bond markets had peaked out. Interest rates had bottomed out on July 25, 2012--a year ago--at 1.43% on the 10-year Treasury note. Mr. Bernanke said at that time at a press conference, the objective of the Fed is to lower interest rates. Since then, they have doubled. Thank you very much. Great success."
On what the endgame is:
"Well, the endgame is a total collapse, but from a higher diving board. The Fed will continue to print and if the stock market goes down 10%, they will print even more. And they don't know anything else to do. And quite frankly, they have boxed themselves into a corner where they are now kind of desperate."
More much more:
http://www.zerohedge.com/news/2013-09-18/marc-faber-warns-endgame-total-collapse-higher-diving-board-now
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