by Commodity Online
The earthquake, tsunami and subsequent nuclear catastrophe in Japan will lead the country to spend heavily into re-building infrastructure. While this will lead to inflation in Japan, the current global economic problems along with the US quantitative easing (up to QE18) will result in World War III, says Marc Faber, noted global economic analyst.
In an interview to CNBC, Faber, the editor of The Gloom, Boom & Doom report made a set of predictions – which included many more rounds of quantitative easing (up to QE18), and eventually World War III.
Following are some of his key comments on Japan earthquake, nuclear disaster and the possibility of World War III.
**The damage from the Japanese crisis will necessitate very heavy spending to rebuild infrastructure, and “that will be somewhat inflationary for the Japanese economy.
**The situation in Japan is very negative for the Yen in the long run. This is a turning point for the Yen.
**The damage is a huge financial burden on Japan government that is already indebted.
**I think it’s healthy that the markets start to focus on something else than what Mr. Bernanke is telling the press all the time. And then QE3 will come, QE4, QE5, QE6, QE7, whatever you want. The money printer will continue to print, that I’m sure.
**Mr. Bernanke doesn’t know much about the global economy, but he watches the S&P every day. I would fully expect more quantitative easing. There’s nothing else they (the Federal Reserve) can do actually.”
**Oil is very attractive from a risk/reward point of view. Faber's macroeconomic forecast is an “ultra-bearish scenario” where “everything will collapse and that there will be World War III, and collapsing countries in the middle east, and then the supply will be curtailed and prices will go up.
**Until very recently the Fed has had very few critics. Very few people criticized the Fed’s policies under Mr. Greenspan and Mr. Bernanke. Over the last few months a lot of critical comments have come up about the Fed and its money printing habit, but I beg you, the S&P drops 20%, all the critics will be silenced, and they will all applaud renewed money printing. Sadly, sadly.”
Faber did not specifically mention gold in this interview, but considering he has been bullish on the yellow metal for much of the past decade and sees so many additional rounds of QE ahead, he likely remains quite positive on gold.
In an interview to CNBC, Faber, the editor of The Gloom, Boom & Doom report made a set of predictions – which included many more rounds of quantitative easing (up to QE18), and eventually World War III.
Following are some of his key comments on Japan earthquake, nuclear disaster and the possibility of World War III.
**The damage from the Japanese crisis will necessitate very heavy spending to rebuild infrastructure, and “that will be somewhat inflationary for the Japanese economy.
**The situation in Japan is very negative for the Yen in the long run. This is a turning point for the Yen.
**The damage is a huge financial burden on Japan government that is already indebted.
**I think it’s healthy that the markets start to focus on something else than what Mr. Bernanke is telling the press all the time. And then QE3 will come, QE4, QE5, QE6, QE7, whatever you want. The money printer will continue to print, that I’m sure.
**Mr. Bernanke doesn’t know much about the global economy, but he watches the S&P every day. I would fully expect more quantitative easing. There’s nothing else they (the Federal Reserve) can do actually.”
**Oil is very attractive from a risk/reward point of view. Faber's macroeconomic forecast is an “ultra-bearish scenario” where “everything will collapse and that there will be World War III, and collapsing countries in the middle east, and then the supply will be curtailed and prices will go up.
**Until very recently the Fed has had very few critics. Very few people criticized the Fed’s policies under Mr. Greenspan and Mr. Bernanke. Over the last few months a lot of critical comments have come up about the Fed and its money printing habit, but I beg you, the S&P drops 20%, all the critics will be silenced, and they will all applaud renewed money printing. Sadly, sadly.”
Faber did not specifically mention gold in this interview, but considering he has been bullish on the yellow metal for much of the past decade and sees so many additional rounds of QE ahead, he likely remains quite positive on gold.
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