Marc Faber at the Agora Symposium on HoweStreet in Vancouver BC Canada this July .Dr Doom says "the media under the influence of some Harvard professor and the Federal Reserve they paint deflation as bad and inflation as good and so forth ...when in fact the US begun the whole 19 century with 4 million people they ended the 1900 with 80 million population and we had the entire and we had the entire industrialization growth in real terms between 1800 and 1900 much higher than it was been in the last one hundred years , the wages were flat and the prices went down it is the reverse of what we have today , where an average American wage is having trouble keeping up with the everyday increasing prices not the Goldman Sachs wages of course ... what brought is in this trouble was the bubble itself...the purpose of every crisis is to clean the system The final crisis is still to come where the whole system will collapse and the whole system will be cleaned of corrupt politicians and wrong policy makers....
Saturday, July 25, 2009
Marc Faber Money printing, debt growth and deficits don't create prosperity
Speaking to the 10th Annual Agora Financial Investment Symposium in Vancouver this week, Marc Faber said: “You cannot create prosperity through money printing and debt growth.”
Faber preached an idea that became the theme of the event: Government fiscal and monetary intervention, “can postpone, but not prevent crisis.
“I believe next year’s economy will face even larger deficits. Their deficit is attempting to stimulate credit growth. Unless real credit growth returns, they will have to put more and more money into the system to maintain the status quo. All polices target consumption. That is a mistake,” Faber said.
So what’s this mean for the market? “The S&P 500 will not recover to 2007 highs. At the peak, 44% of the S&P was the financial sector. That is gone… not coming back.”
“In the period, 2001–2007, the Fed managed to do something that had never before been done – create a worldwide bubble in just about everything. Stocks, bonds, art, oil, housing – you name it; it went up. The only thing that didn’t go up was the dollar,” Faber said.
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