What is your interpretation of how things are shaping up in the euro-zone, West Asia and Japan? What are the likely implications for the global markets, especially after what happened in Egypt and Greece’s bailout?
MARC FABER : In my view, the euro-zone is not going to grow. We had the exports
figures coming out of Germany. On the contrary, it is more likely to
contract than grow going ahead. Having said that, it actually doesn’t
matter whether it contracts or grows – basically there is no economic
growth in Europe for the time being.
In the case of Japan, we have had essentially very little growth and
some deflationary pressures until last October after which the Bank of
Japan (BoJ) embarked on monetary easing policies. Since then the Yen has
weakened considerably and the stock market has risen sharply.
I think that the policy decisions in Japan are quite dangerous because
it essentially gives a green signal to other countries regarding
monetary easing. If there is have low economic growth and if the share
market is not performing well, then most likely the currency will go
down. This will help economy temporarily and lift asset prices. - in business-standard
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.