Wednesday, February 3, 2016
Low Interest Rates are more Negative than Positive for The Economy
"In my view, his (the BoJ's Governor Haruhiko Kuroda's) ammunition is not working. It worked in the sense that the stock market went up in the last 12-18 months but the yen has been going down," he said, adding that most Japanese citizens were bearing the brunt of government economic policy.
"If you're Japanese, eighteen months ago you had a certain net worth and now your currency is down 30 percent so are you richer or poorer? Of course you're poorer. These low interest rate in Japan, in my view, and especially now these negative interest rates, are rather more negative than positive for the economy and for the typical Japanese household," he said.
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