Marc Faber : Interest rates will stay at ZERO

Marc Faber CNBC Interview all 3 parts - Mar. 18 2010

"Before we will have a final collapse that will be a deflationary collapse we will have more and more money printing , I am not saying that the FED policies are desirable , I am not saying that the fiscal policies are desirable , but you look at Mr Obama and you look at Mr Bernanke they will have large fiscal deficit and money printing for as far as the eye can see , it will not help the real economy that's the point ...money printing go to Zimbabwe and have a look at the real economy , the output cap is like 95 percent in other words the economy is operating 95 percent below its capacity ...but in an environment like this what you get is stocks moving up and the value of money going down " Marc Faber explains
US Politicians Better Not Upset China , Can't Accuse China of Manipulating Currency: Faber , "I don't think you can accuse China of manipulating their currency," Marc Faber, editor & publisher of the 'Gloom, Boom & Doom Report,' said Thursday. He said that China has had huge productivity improvements, but that in the US productivity has reduced, not improved.
"In General now everybody thinks we need more regulations , we need less regulations , but what we need is regulations that make sense says Marc Faber and my point is if we had interests rates that are high you would not have the amount of speculations that we had in the past ten , fifteen years , so again I am going back to easy monetary policy of the FED in the United States that has essentially encouraged speculation on an incredible scale worldwide and they have also introduced moral hazards by bailing out already 9098 LTCM and again by bailing out AIG , AIG should have gone bust and then the whole derivative market would have shrunk , but each time you bailout someone and that's a form of regulating the market , you create unintended consequences , it is like why do we have such horrible housing market because Fannie Mae and Freddie Mac encouraged speculation in real estate indirectly ...Says Marc Faber ...in the corporate world we have free market we have capitalistic system and some companies survive and other companies go bankrupt and the same should be with governments , if a government cannot pay then let them go bankrupt , why would one bail them out and some investors will suffer and some investors will bet on the bankruptcy of the governments who will make it , that's fine ...Marc Faber continues then speaking abut where he sees the Euro the YEN and US Dollar going from here , he also speaks about gold and gold standard
"I think we already have now a gold standard … created by the market place," Marc Faber told "Squawk Box Europe.""We have the (ETFs) that have proliferated and we have more and more physical buying of gold," he said.
"I think interest rates forever in the US will be at zero. By zero I mean below the rate of inflation," Marc Faber, editor & publisher of The Gloom, Boom & Doom Report, told CNBC Thursday. Faber also said that the Chinese economy will slow down, but avoid a crash.
Dr. Marc Faber also known as Dr Doom is an investment adviser, investment analyst and fund manager author and publisher of the Gloom Boom & Doom Report ,and the author of "Tomorrows Gold" . Dr Faber is known for his contrarian investment approach. Dr Marc Faber is associated with a variety of funds and is a member of the Board of Directors of numerous companies.
In 1987 he warned his clients to cash out before Black Monday on Wall Street. He made them handsome profits by forecasting the burst in the Japanese Bubble in 1990. He correctly predicted the collapse in US gaming stocks in 1993; and he foresaw the Asia-Pacific financial crisis of 1997/98 and the resulting global volatility. Dr Doom motto is "Follow the course opposite to custom and you will almost be right"
Mr. Faber is also the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery, and is a director of Ivanhoe Mines Ltd. , a mining firm focused on the Asia Pacific region. He is also an adviser to a number of private investment funds.