And what has happened? Interest rates have increased. According to
David Rosenberg, it is actually the fifth-worst sell-off in the 10-year
Treasury note since the 1960s. Whereas we can all agree that many
factors other than the Fed’s policies have had an impact on the economy
Obamacare, etc.), it is crystal clear that the Fed’s QE3
and QE4 policies have completely failed in their stated objectives. This
is now an instance where the market economy has badly humbled the
professors at the Fed.
When the Fed announced QE1 in late 2008, it
was clear to me that monetary inflation would lead to some price
increases somewhere in the system. My initial thought was that QE1 would
boost gold and commodities (in December 2008, oil touched a low of $32
per barrel) as well as equities around the world, which were at the time
extremely oversold. But it didn’t cross my mind that money printing
would most benefit gaming stocks and the high-end luxury sector of the
economy (art, vintage cars, wines, high-end real estate, etc.).
- excerpt from article by Marc Faber @ http://dailyreckoning.com/a-corrupt-system-that-rewards-stupidity/
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.