Governments Are Monetizing The Debt. They Are Printing Money

The Fed printing presses are turning at full speed as the government is monetizing the debt by printing more money said Marc Faber yesterday . "from 2002 to 2007 We had this huge bull market in asset prices, during which everything went up. Commodities, equities, real estate worldwide , even bond prices and art.

Then came the big awakening, credit growth began to slow down and in 2008 everything collapsed except for bonds and the US Dollar, because global liquidity was shrinking and that was dollar supportive. And then we had the beginning of the recession at the end of 2007 and the global economy fell off a cliff between September of 2008 and March of 2009.

I think the rate of deceleration is now diminishing, we still have bad news, the global economy will not recover in a long time but it is not going to deteriorate much more. And we have a huge effort by governments worldwide to create fiscal deficits, in other words to print money. For that reason even if the world economy does not recover you will have a strong recovery in asset prices."