Friday, October 17, 2014
Marc Faber : The Fed would go to QE99
HAI: The Fed has said it's going to end QE this month and raise interest rates sometime in 2015. Do you believe that will happen?
Marc Faber : It won't raise interest rates for a long time. Certainly not in real terms. It's possible that it'll end QE4 and that the asset purchases come to an end. But only temporarily. When it introduced QE1, my view was that it would go to QE99. And I still maintain that view.
HAI: You're saying that it'll have to come back and do QE again sometime in the future?
Marc Faber : Yes. One of the reasons we have weak growth in the Western world, and in the U.S., and in Japan, is because of government interventions with fiscal policies. Spending-supported by money printing-has led to an ever-expanding government as a percent of the economy. And the bigger the government is, the slower economic growth will be. The extreme is when the government controls everything in the economy, such as under the socialist/communist planning system.
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