Marc Faber : Asian Currencies better than the Australian and The Canadian Dollars

Marc Faber more bullish about the Asian Currencies such as the Singapore dollar than the Australian and The Canadian Dollars which are very tight to the commodities cycle and hence vulnerable to any slow down of the demand from China



Marc Faber :"...I do not think the Euro will go to parity , but can it go down another ten , fifteen percent ? ...easily I think the Eurozone will bailout Greece it will also bailout other countries like probably Spain at some stage , Portugal ...and that is obviously not favorable for the currency but this is the patern we have today we had excesses and we had misallocations of capital between 2002 and 2007 , then in 2008 we had the financial crisis a period of deliveraging sets in and then the government come in and bailed out essentially companies that failed notably in the financial sector , and of course in the US the two biggest bailouts Fannie Mae and Freddie Mac which were government sponsored enterprises and in Europe they will have to bailout countries like Greece and this is basically a monetization and it leads to a loss of purchasing power of the paper money both for the U.S. Dollar and the Euro , now I believe that all paper currencies are not desirable t they will lose value , will the Euro lose more value than the dollar ? could be for sis month and then may be the US Dollar loses more value than the Euro we'll have a kind of a shift ...In General I think that the Asian currencies are in a reasonably good position to appreciate further as the Singapore dollar has recently done , i am less optimistic about the Australian Dollar and the Canadian Dollar because they are very tight into the commodities cycle ...you know if I expect the Chinese economy to slow down or even to have some kind of bursting of the property bubble then it will affect the demand of China for industrial commodities and that will be negative for Australia and Canada .....