David Rosenberg , 99% sure Recession by 2012

David Rosenberg , chief economist at Gluskin Sheff & Associates,and former Merrill Lynch North America Chief economist and Former Bank of Canada Chief economist says that he is 99.9% sure that there will be a recession next year that the FED will have to do a QE3 that there is no more room for another fiscal stimulus"I think that by 2012 I give it a 99 percent of occurring " " when you have a manufacturing inventory cycle recessions usually separate 5 years apart , but when you have a balance sheet recession we are talking about credit contraction asset deflation for example residential real estate , when you have these sort of balance sheet recessions the downturn tends to be separated every two , two and half years so I think that by 2012 that will be roughly the time we going to see the next downturn "

Marc Faber : We should have been in deflation after 1980

Dr. Marc Faber : "...We should have been in deflation after 1980 because the Kondratieff peaked out in 1980 or in the mid-seventies to the eighties and then we have a downward wave in commodity prices and declining interest rates. That is the time we should have had deflation. But now that commodity prices are turning up it‟s more likely that we are in a very high inflationary environment and the reason I have this debate with the deflation is not so much that they believe in deflation and that I believe in inflation - but their conclusion to buy U.S. government bonds in a deflationary environment is, of course, a disastrous recommendation because if you really have the credit collapse, the deflationists are arguing about, then obviously tax revenues will collapse and the fiscal deficit will go to the moon.I mean, Tim Geithner just signed the treasury report about the budget deficit about the financing of the U.S. for 2010. The deficit was not $1.4 trillion but $2 trillion signed by him. And so the government debt goes up and up and up and up and then the interest payments from the government go do go up and the quality of government debt goes down and so eventually you have a junk bond in the U.S.. I believe the U.S. government bonds are junk already today but as long as you have rating agencies that are dreaming and publishing reports that are completely useless, people still buy the government bonds in the U.S. " in a recent interview with Chris Martenson

The Federal Reserve targets core inflation

Dr. Marc Faber : "...Yeah, but do you understand its very difficult to define inflation. The Federal Reserve essentially targets core inflation. Core inflation has nothing to do with your cost of living increases. And as you know the basket of goods and services that are used to measure inflation can be weighted in such a way that things that go up a lot like health care costs, insurance premiums, energy, in this regard entirely and other items where prices are deflating like a T-shirt are over-weighted. " in a recent interview with Chris Martenson