Sunday, February 21, 2016
Marc Faber on Negative Interest Rates
Mike Gleason: Gold has been rallying in dollar terms lately but it has done much better in terms of many other major fiat currencies. The U.S. dollar has been remarkably strong in the past year, although it's finally showing some signs of weakness. What are you expecting over the coming year in the currency markets? Is the dollar going to head higher still or do you see it rolling over?
Marc Faber: The question should be, "Which central bank is the most insane?" Because you understand, the central banks have been manipulating just about everything. They manipulate the currencies, they manipulate interest rates, they manipulate stocks. It's interesting sometimes if you observe in the U.S., when the market is very weak overnight, in other words the S&P futures go down 20, 30 points, suddenly, a buyer emerges and pushes up the market. I believe that the Fed has not just intervened in bonds through Operation Twist, in interest rates through QE programs but occasionally they step into the stock market to stabilize the market and try to push it up. I think other central banks around the world ... in Japan, they announce it, the central bank, the Bank of Japan, is buying shares through ETFs.
So there's a gigantic manipulation and you and I, as an investor, we just don't know how far these insane people will go with the manipulation of markets. Now, already 7 trillion dollars' worth of pounds are trading at less than 0 interest. The talk is that, even in the U.S., they might introduce negative interest rates. Negative interest rates will not help the world; I guarantee you that.
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.