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Sunday, January 26, 2014
Marc Faber on Zero Interest Rates Policy
"But one thing I wanted to show you and talk about because you said
that lower interest rates help people. Well, if money trending helps
everybody, then why does not everybody in the whole world always have
zero interest rates? And everybody would be rich. You keep on printing
money and you don't need to work here, you don't need to put on makeup. I
could stay in bed the whole day and go drinking in the evenings. So,
let's just print money and be all happy. It doesn't add up. One thing
about the figures you showed: first of all, you live in New York. Do you
really think that your cost-of-living increase is a 1.2% per annum? You
really believe that? It doesn't feel like more, it feels like five
times more, or even ten times more."
"Number two, by keeping interest rates at zero percent on the Fed
fund rate -- i want to emphasize that this is now going on in March of
2014 for five years. It is not something new. For five years this has
happened. You penalize the income earners, the savers who save, your
parents, why should your parents be forced to speculate in stocks and in
real estate and everything under the sun?"
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.