Sunday, December 6, 2015
The Global Economy is not as the Federal Reserve expect it to be
Marc Faber : Well, I’m glad that you say I’ve been right about something, because whenever I’m on CNBC or Bloomberg, they always put me down about everything.
But yes, I wasn’t very optimistic about emerging economies at that time and I think I’m still cautious but I have to qualify these statements.
Basically, most of the world today economically depends on Chinese economic growth. When China is growing rapidly, they buy a lot of resources from the resource-producing economies of the world. Whether it’s in Latin America, Africa, Australasia, Central Asia, Russia—they also have a boom, and then they buy more goods from the industrialized countries of the world. So the whole global economy picks up in that context.
On the other hand, when China slows down, everything goes into reverse and you have essentially a vicious circle on the down side.
My sense is that the global economy is not as the Federal Reserve and other groups expect it to be in terms of accelerating on the upside, but actually that it’s in contracting mode and let me explain partly why.
If the Japanese and the Europeans pursue very expansionary monetary policies, it means that those currencies go down against the US dollar. So in dollar terms, their economic activity shrinks. As their currencies go down and economic activity shrinks in dollar terms, they buy less goods also. So then the global economy contracts. - in Sprott Global
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.
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.