Friday, August 7, 2009

Inflation vs Deflation The Debate Continues on the Gloom Boom and Doom Report

Marc Faber has just released his Gloom Boom & Doom Report in which he goes more in depth into the inflation vs deflation debate

"If deflationists are right (and they could be right in the near term, in my opinion), then the US government bonds and the dollar will rally, while stocks, commodities, real estate, and lower-quality corporate bonds will tank. But if I am very confident about making one prediction, it is that, if we have further deflation in the immediate future, there will be not one more, but many more stimulus packages and further massive monetisation. So, government debt-to-GDP could easily double within five years. Now, does anyone seriously think that the dollar and government bond prices wouldn’t at some point begin to reflect concerns about the financial condition of the US under these conditions? " Marc Faber said in his report

click to read more of Marc Faber's Gloom Boom & Doom Report of August 2009


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