Expansionary US monetary policy Creating the next crisis Marc Faber

"So I think as far as the eye can see, monetary policies in the US will stay expansionary," Marc Faber told CNBC TV 18 last week

"Reading through the literature and through the speeches that are being given by Mr Ben Bernanke, my impression is that the short-term interest rates will stay long for a very long time. In America the fiscal deficit this year will be around US$2 trillion and I do not think they can cut the fiscal deficit next year because if they cut it, it will have a negative impact on the economy.

So I rather think that the fiscal deficit will stay at this level or in my opinion actually even increase. That will lead the Fed to keep interest rates artificially low because should they increase short-term rates meaningfully then the cost of servicing the government debt in the US will escalate substantially" Faber added Watch Video Interview bellow

Tags:
Marc Faber yahoo techticker www.Marcfaber.tk Peter Schiff Nouriel Roubini Ron Paul swine flu Jim Rogers US Government Obama Bankrupt Global Economic Collapse Treasury Bond Bubble The Gloom Boom and Doom Report 2009 Alex Jones Max Keiser Gerald Celente Economy collapse dollar crises finance stock market wall street bailout