SMN: That seems like complete insanity to me, because it seems like they were the ones that got us into this problem in the first place.
Marc Faber : Look, we know what the result was of Stalin’s
economic policies and so forth. The planning economy is a complete
failure. But now, recently, they announced that they would also
implement some macroeconomic policy decisions in structuring interest
rates and monetary policies. They really think that they can steer the
economy and that they can steer markets. Milton Friedman has written
about this extensively. He thinks the introduction of essentially the
Federal Reserve and with fiscal measures, the economic volatility in the
US in the 20th Century was much higher than in the 19th Century, and
this is correct.
One of the goals of so-called Keynesian policies would be to
stabilize economic activity. In other words, you don’t have huge
business cycle fluctuations and you have relative price stability. But
please, tell me, where is economic stability nowadays, and where is
price stability? Oil prices move up and down like crazy, home prices
move up and down like crazy, and the stock market does the same. There’s
far less stability than there ever was before, complementary of the
Federal Reserve and essentially of the US Treasuries fiscal policies. - in Sprott money News Interview : Click Here to watch the full interview >>>>>>
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.