Marc Faber Sees U.S. Inflation Approaching Zimbabwe Levels

May 27 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom and Doom Report, talks with Bloomberg's Bernard Lo about the outlook for the U.S. economy.

Faber, speaking in Hong Kong, also discusses the performance of equity markets, gold and oil prices, and the prospects for a global economic recovery. Bloomberg's Mike Firn also speaks. (Source: Bloomberg)
Marc Faber also speaks about nuclear proliferation the Hyperinflation
The U.S. economy will enter “hyperinflation” because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said
“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”
“There are some concerns of a risk from inflation from all the liquidity injected into the banking system but it’s not an immediate threat right now given all the excess capacity in the US economy,” said David Cohen, head of Asian economic forecasting at Action Economics in Singapore.

“I have a little more confidence that the Fed has an exit strategy for draining all the liquidity at the appropriate time.”
Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.
Faber still favors Asian stocks relative to US government bonds and said Japanese equities may outperform many other markets over a five-year period. “Of all the regions in the world, Asia is still the most attractive by far,” he said.

Faber, who said he’s adding to his gold investments, advised buying the precious metal at the start of its eight-year rally, when it traded for less than US$300 an ounce. The metal topped $US1,000 last year and traded today at $956.40 an ounce at 12.50pm New York time.