Thursday, July 23, 2015
Strong Deflationary Forces despite all the Money Printing by Central Banks
Via CNBC :
"In the U.S., the market could easily drop 20 percent to 40 percent," he said. The downside risk is lower in already depressed markets outside the U.S., he added.
Faber has been predicting the meltdown of U.S. stocks for years, only to see the market climb higher.
Faber, who lives in Asia, said he sees "no growth" coming from the economies there, with some countries in recession. As a result, Faber does not see much strength coming from the rest of the world. He called the expansion in Europe "anemic."
The situation in Greece, where the nation is receiving bailouts to pay back borrowed money, is "basically Ponzi finance" that can't last, Faber said.
He's also concerned about the recent weakness in commodity prices.
"Supplies haven't gone up that much, and do not reflect the price weakness," he said. "The prices weakness is because of weak demand."
"May be this the signal that there are strong deflationary forces despite all the money printing by central banks," 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