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Fed Policies Will ‘Destroy the World’

muleman

Gone But Not Forgotten
GOLD Site Supporter
Marc Faber: Federal Reserve Policies Will ‘Destroy the World’



Monday, 17 Sep 2012 09:17 AM
By Forrest Jones


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Loose monetary policies pushed through by the Federal Reserve as well as at other central banks will literally "destroy the world" by sending the global economy swelling, bursting and then tanking, said Marc Faber, publisher of the Gloom Boom & Doom Report.

The Fed recently announced plans to stimulate the U.S. economy by purchasing $40 billion a month in mortgage-backed securities from banks, a monetary policy tool known as quantitative easing that pumps liquidity into the economy in a way that pushes down interest rates to encourage investing and hiring.

Critics say the tool basically prints money out of thin air and also plants the seeds for mounting inflationary pressures down the road.http://w3.newsmax.com/a/money_mischief/video2.cfm?promo_code=10173-1

The policy measure also weakens the dollar while sending stock prices higher, but once the sugar high ends, expect markets and the economy to pop since all that liquidity won’t help the average American and fuel the underlying demand for goods and services that the economy lacks.

“The fallacy of monetary policy in the U.S. is to believe that this money will go to the man on the street. It won’t. It goes to the Mayfair economy of the well-to-do people and boosts asset prices of Warhols … .Very happy. Very good for the Fed. Congratulations, Mr. Bernanke. I’m happy,” Faber told Bloomberg TV.

“My asset values go up but as a responsible citizen I have to say the monetary policies of the U.S. will destroy the world.”

The United States isn’t alone when it comes to expansionary monetary policies.

Other big central banks are pushing through their own policies, as well.

“The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down,” Faber said.

Such policies should send investors opting for stocks over bonds.

“I don’t like bonds. I don’t particularly like equities, but I think equities are a better space to be in than bonds,” Faber added.

Other high profile investors have criticized the Fed’s policies as well.

“The dollar will go down in value and inflation will start rearing its ugly head,” billionaire real estate mogul Donald Trump told CNBC.

Meanwhile, quantitative easing will do little to jolt the one area of the economy that threw the country into recession and continues to dampen recovery — housing.

Interest rates are already low as it is, and the Fed’s liquidity injections won’t spark the demand the sector and the broader economy need to see.

“Mortgage rates are already very low,” Trump said.

“But the banks aren’t lending. So it doesn’t make any difference.”
 

Melensdad

Jerk in a Hawaiian Shirt & SNOWCAT Moderator
Staff member
GOLD Site Supporter
This is my fear. I think he may be right.
 

Doc

Bottoms Up
Staff member
GOLD Site Supporter
Ron Paul has said it, and City Girl has shared numerous articles on how the FED is our own internal cancer. As long as it exists in it's current form we are doomed.

I have no clue if Romney would do anything about the Fed. Would he put a stop to Bernanke's idiot printing of money out of thin air? Could he stop it? The Fed has far to much power. While we debate the pluses and minuses of the Democrat and Republican candidates the Fed is sitting back laughing and sealing our fate.

This election is not about the seniors or the middle class it's about whether we will have a country to pass on to our kids and grandkids. I'm not sure if Romney is up to the task but I damn sure know I don't want Obama for four more years.
 

300 H and H

Bronze Member
GOLD Site Supporter
They say JFK was inthe process of printing a currancy that had nothing to do with the FED when he was killed. The money he had ordered printed was rounded up and destroyed, or so the story goes...

If so, can any President tangle with the FED??

Makes me wonder why the current administration is able to get them to act just before election time. Maybe Barry has something on Ben?? Just wondering.

Kirk
 

Kane

New member
The Chairman of the Federal Reserve is a political appointment made at the pleasure of the sitting president. And in this case, Ben Bernanke is accommodating the sitting president's pleasure to get re-elected.

Pure and simple.

.
 

loboloco

Well-known member
As long as the predominant currency of the world is a fiat currency, we will face this problem. It's not just the fed, it is also the fact that our currency is currently not worth the paper it is printed on.
 

Kane

New member
As long as the predominant currency of the world is a fiat currency, we will face this problem. It's not just the fed, it is also the fact that our currency is currently not worth the paper it is printed on.
A house built upon the sands of banknotes is doomed.
 
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