Marc Faber was on the Asian Investor Investment Forum the past week in Seoul South Korea :the exploding liquidity and the stimulus package will come at a price and that price is the debasement of the currency if not its total crash and of course a hyperinflation scenario that may hit in between 5 to 10 years from now
Markets may continue to climb, says Marc Faber, but if the dollar in your pocket is going to depreciate, it's a little consolation. In real terms, investment values may move backwards.
Marc Faber believes that the central bankers are moonlighting as money printers, and any man in the Fed who tries to oppose the presses, and put up interest rates to siphon the voluminous liquidity, is going to find himself jobless.
"The Fed's monetary policy has made things more volatile," he pointed out. "Had they not cut rates, financial institutions would have started deleveraging earlier, instead of continuing to build their balance sheets, prompted by the cheaper rates."
US debt to GDP is now at 37% and that doesn't include all its future promises and obligations, which could see it balloon to 600%. With $8 trillion in government debt, Marc Faber is convinced that it is an impossible for that monetary policy to be relaxed.
"Stocks will do better in the next decade, especially in Asia, given dividend yields, but not in real terms against currencies," he says. "If you borrow, then do it in US dollars."
Marc Faber sees opportunities in Asian healthcare, in banks in countries like Thailand (where he resides presently), tourism, and of course gold. On the property side, he recommends buying farmland just like Jim Rogers is saying , and to avoid condos in financial centres
