Marc Faber : the Fed monetary policies lead to bubbles in emerging economies through capital flows.

Marc Faber : "...Yes I think the criticism arises because we have too much of a good thing, in other words the Fed's monetary policies now lead to some kind of bubbles in emerging economies through capital flows. Now this incoming liquidities they can be absorbed in 2 ways, either like the currency appreciate sharply or you have domestic very high asset inflation or combination of the two. The problem is, with all this, that once the speculators see that said the Thai Baht, or the Malaysian Ringitt appreciates and that asset prices in those countries go up, they pile in even more and then you have even larger speculative bubbles,and excess liquidity and dropping dollar bills on the United States from helicopters like Ben Bernanke suggested, the problem with that is he doesn’t know where the money will flow and in this case, excess liquidity flows, into emerging economies and into precious metals and new bubbles are building up, that at some point in future, will burst and then you have another problem on your hands the way you had the problem of the Nasdaq bubble burst and the housing bubble burst...." in moneycontrol.com