Tuesday, April 1, 2014
Strong Economy comes with Capital Spending Does not Consumption
‘Wealth doesn’t come from consumerism, it comes from capital spending,‘ he said.
And the problem for the US economy is that while debt has continued to rise, capital investment hasn’t. In fact, it’s been falling sharply for a long time.
‘If we have growing debts, there’s a difference in quality of those debts,‘ he said. Japan, South Korea and Taiwan used their debts to invest in factories, plants…investments that generated wealth. According to Faber however, the US has just acquired debt to fuel consumption. ‘Where’s the future income?‘ he asked. - in countingpips
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