Saturday, March 15, 2014
Faber : China Economy is only growing at 4 percent
"I think we are already at a 4 percent growth rate anyway. The figures that China publishes are figures they just take out of a drawer to make it look good," Faber said.
"I think 4 percent growth in a world that is has no growth is actually very good," he said.
"It's like a hedge fund manager, he told me last year he makes 4 percent. So I say this performance [is] not particularly good, and he said yes, compared to zero percent interest rates, that is a fantastic return."
Faber also pointed out that it would be much healthier for China to growth at a slower rate with reduced credit risk.
"I'm not saying that 4 percent is as good as 8 percent, but it would be better to grown at 4 percent without a credit bubble than at 8 percent with a colossal credit bubble that will lead down the road to even larger problems," he said.
"And I think we have to realize excessive credit growth eventually leads to a crisis; this always happens. And in the case of China we do not have a credit bubble, we have a gigantic credit bubble," he added.
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.
Posted by Nicole Bourbaki