Marc Faber : In my view, the euro-zone is not going to grow. We had the exports figures coming out of Germany. On the contrary, it is more likely to contract than grow going ahead. Having said that, it actually doesn’t matter whether it contracts or grows – basically there is no economic growth in Europe for the time being.
In the case of Japan, we have had essentially very little growth and
some deflationary pressures until last October after which the Bank of
Japan (BoJ) embarked on monetary easing policies. Since then the Yen has
weakened considerably and the stock market has risen sharply.I think that the policy decisions in Japan are quite dangerous because it essentially gives a green signal to other countries regarding monetary easing. If there is have low economic growth and if the share market is not performing well, then most likely the currency will go down. This will help economy temporarily and lift asset prices.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
