If something happens in China, they will print even more than the U.S. prints

Marc Faber : I think that there will be some decoupling, and whenever you look at the markets,different sectors perform differently, but generally speaking, in the same direction. So if someone were to take a very bearish view about emerging stock markets, I do not think he should go into European stocks or U.S. stocks. I take a more balanced view. I think we are in a money-printing environment. If something happens in China, they will print even more than the U.S. prints. If something in happens in Europe, they will also print money. They are going to print money everywhere, and with interest rates, essentially on short-term deposits, being zero, or below zero, inflation-adjusted, in other words, if inflation rates everywhere in the world are higher than the interest rates on short-term deposits, I think, for the investor, the question is really, “How do I invest my money for the long - term?” I think that you cannot make a very bullish case for stocks, but I think you can make a more bullish, or more positive, case for stocks than say, for U.S. government bonds,because the specifics in the U.S. will stay very high, and the quality of the banks will diminish and the interest payments as a percent of tax revenues will go up, and so forth. So whether you believe in, let’s say, an economic recovery and world growth, or if you believe in disaster, in either case you are probably better off in equities than in bonds.In terms of returns, I agree with you, I do not think that the returns will be fantastic, but if you print money it is very difficult to say what the returns will be, because it is not stocks that adjust on the downside, but it is the currency that adjusts on the downside. So in theory, it is possible that the Dow could double if you print money, or it could even go up10 times, depending on how much money you print, and with Mr. Bernanke at the Fed, I think it is quite likely that a lot of money will be printed...."
in a recent interview with McAlvany