Marc Faber : Rich people benefit from inflation

Marc Faber in CNBC : It would take a long time to go into details, but the main issue isn't between Democrats and Republicans. It is an issue of entitlements. Most people are not well off, so they want more transfer payments. They people who are doing well and work hard don't want to pay those people. But they are probably only about 5%. The poor people far out-number the well-to-do people, and they have far more votes than them. They only way to strike back is through inflation. Also, by outsourcing all the work to China, they have disenfranchised the poor workers. And by printing money asset prices go up. This causes wealth disparity.

This isn't a conspiracy. If you think about it, the rich people have far fewer votes than the poor people. 50% of babies born in America are born to poor mothers who are not married. What kind of education will these children get? And they have the same vote as someone who has affluence and influence and who has worked hard all his life. They think that the system is cheating them, so they are going to cheat the system.

The tragedy is that the system has become dysfunctional. We are not living in the America that it used to be. Something changed along the way, and everyone just wants to rip off the system.

Rich people benefit from inflation because the money flows into assets, and then they can shift their assets overseas. The ordinary man doesn't have that potential.