MARC FABER

MARC FABER

Saturday, June 4, 2011

Marc Faber : Rich people benefit from inflation

Marc Faber in CNBC : It would take a long time to go into details, but the main issue isn't between Democrats and Republicans. It is an issue of entitlements. Most people are not well off, so they want more transfer payments. They people who are doing well and work hard don't want to pay those people. But they are probably only about 5%. The poor people far out-number the well-to-do people, and they have far more votes than them. They only way to strike back is through inflation. Also, by outsourcing all the work to China, they have disenfranchised the poor workers. And by printing money asset prices go up. This causes wealth disparity.

This isn't a conspiracy. If you think about it, the rich people have far fewer votes than the poor people. 50% of babies born in America are born to poor mothers who are not married. What kind of education will these children get? And they have the same vote as someone who has affluence and influence and who has worked hard all his life. They think that the system is cheating them, so they are going to cheat the system.

The tragedy is that the system has become dysfunctional. We are not living in the America that it used to be. Something changed along the way, and everyone just wants to rip off the system.

Rich people benefit from inflation because the money flows into assets, and then they can shift their assets overseas. The ordinary man doesn't have that potential.
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Dr. Marc Faber Tomorrow's Gold







Dr. Marc Faber author of the Gloom, Boom and Doom report is a world class Investor, Doctor Faber 's typically controversial and contrarian views have earned him the label of Dr. Doom. Doctor Doom also trades currencies and commodity futures like Gold Natural Gas and Crude Oil.Even his harshest critics must admit that he's been unerringly correct in his market forecasts over the past three decades . Marc Faber is a Swiss investor.He was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.