Sunday, May 31, 2009

Marc Faber and Nouriel Roubini agree on the Inflation scenario

Marc Faber, dubbed Dr. Doom for his negative views on the global economy, said he is 100 percent sure that the United States will go into hyperinflation like that of Zimbabwe.

``The problem with government debt growing so much is that when the time comes and the Federal Reserve should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate,'' Faber said in a recent interview.

Prof. Nouriel Roubini at New York University, one of the few who predicted the ongoing economic turmoil, is talking about a milder but still severe inflation.

During a press conference last week on the sidelines of the Seoul Digital Forum, Roubini said double-digit inflation would wreak havoc on the U.S. economy.

``The U.S. inflation rate is at a very low level now. But even 10-percent inflation would highly damage the U.S. and may cause a decade of very mediocre economic growth,'' he said.

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