Wednesday, July 16, 2014

Marc Faber Warns of a near Dollar Crisis

ET Now: What about currencies? Currencies are also exhibiting a lot of volatility. Do you see some weakness in the US dollar after the recent correction?

Marc Faber: Well, given the reduced demand for imported oil from the US and the potential that the US will become energy self-sufficient, it is a puzzle to me that the US dollar has been stronger.
So it tells me that structurally the US dollar is still weak. Now I believe that the following scenario could actually lead to a dollar crisis. Let us assume that the stock market continues to go up and the economy does not respond much, but prices begin to rise and so rents, insurance costs, medical costs, food costs and energy costs rise.
The Fed will at that time have to choose if they increase interest rates and tighten monetary conditions in order to combat inflation, or continue to ease and print money in order to avoid asset markets from declining. At that point, there could be a crisis of confidence in the US dollar which would then weaken the US dollar considerably. - in ET Now July 2014

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.

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Dr. Marc Faber Tomorrow's Gold

Dr. Marc Faber author of the Gloom, Boom and Doom report is a world class Investor, Doctor Faber 's typically controversial and contrarian views have earned him the label of Dr. Doom. Doctor Doom also trades currencies and commodity futures like Gold Natural Gas and Crude Oil.Even his harshest critics must admit that he's been unerringly correct in his market forecasts over the past three decades . Marc Faber is a Swiss investor.He was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.