Marc Faber :
"The problem is that the money doesn't flow evenly into the system but
it flows into some sectors at different times and it creates booms in
some sectors of the economy."
"The major beneficiaries of the most recent monetary
inflation based in 2008 have been people closest to the source of the
liquidity. In other words the financial sector, hedge fund and bond
managers, private equity firms and large asset holders; because if you
look at, say, who owns shares in the U.S.; the majority of people have
no shareholding to speak of. It’s the minority, maybe five percent of
the population, that holds the majority of shares. So the money printing
has actually been very beneficial to well-to-do people. That’s why some
high-end property prices are at record highs. It’s been also beneficial
to people with money in emerging economies because a lot of funds flow
into emerging economies due to the huge U.S. trade and current account
deficits and it has been rather detrimental to the middle class and the
working class because their costs of living have risen more than their
wages."
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
