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Thursday, January 26, 2012
Zero Interest Rates & The pumping of cash into the system creates BUBBLES
Marc Faber : “continuous government interventions in the free markets through mostly monetary and fiscal policies have actually, instead of smoothing out the business cycle, led to more economic and total financial volatility, and have numerous unintended and unfavorable consequences."
“When you drop the dollar bills into the system you don’t know where they go, and this time around they went to the housing market. The destructive nature of dropping dollar bills is you create bubbles in one sector of the economy.” - in Edmonton journal