MORE FROM MARC FABER
30 June 2009 by Cullen Roche
6 Comments
Great strategy and investment outlook from Marc Faber:
* Thanks to reader Marek for sending this my way
Disclosures - Unless otherwise noted, authors have no positions in any securities mentioned and readers should never consider this to be investment advice. Always consult your financial advisor before acting on any ideas.
Comments Guideline - Readers who denigrate authors or other readers will be banned without warning. This site does not tolerate any sort of reader abuse. The goal of this site is to create an environment that is conducive to learning and better understanding of the monetary system and the investment world. We expect readers to behave maturely and responsibly. We welcome and encourage intense and intelligent discourse, but the site adheres to a strict 1 strike policy. While it is your right to speak freely, it is not your right to behave childishly. Above all else, please enjoy the site. It is intended to be used as an educational tool and we hope the intelligent and mature debate will further that purpose. We hope readers will make an effort to respect that goal. Comments with excessive linking or foul language will be moderated before posting.
Comments
If we are going to measure inflation by what is stolen from us by the government, then yes, there will be inflation. lol.
I just do not understand how intelligent people think inflation is on the near-term horizon.
DEFLATION IS KING, and it shall be so for some time. The destruction in the real form of money supply – securitized instruments and derivatives – has happened at a breakneck speed.
BB and TTT are simply trying to keep us afloat with the money printing. If you print $1T and burn $3T existing in $$, then how has money supply increased.
Can anyone answer that simple damn question??????
I agree, prescient. I admire guys like Faber and Rogers, but they are way too early in their call for hyperinflation.
People give BB too much credit in thinking that he can inflate our way out of this mess. There are no more bubbles to blow without destroying the bond market. If that happens, it’s game over for the federal govt(which is probably a good thing) The govt doesn’t have a whole lot of room left for more porkulus bills and QE without some dire consequences that would ruin the private sector. Althoug, I really believe that the Obama administration thinks that it can substitute private sector jobs and functions for govt ones, I guess BHO has to learn the hard way.
The credit excesses of the past 20 years must be defaulted on or paid for. deflation is king.
Joe,
You hit the nail on the head man. I like Schiff, Rogers, Faber and co. and think they should be listened to.
But this whole reflation analysis makes no sense. And if equities can only go up because of money printing, a counterintuitive premise in and of itself, then bond/treasury yields will plummet and the federal government will be unable to fund itself.
In other words, if the equity market gets ahead of itself and treasury yields crash too much, then the Fed. will use their state street trading accounts to crash the damn market.
All imho. Scaring the fuck out of people is the only way that the FEd can keep treasury yields, and thus the mortgage rates, way down, and yet still keep a significant demand up. For the next 2Qs, I’m expecting to see some serious fear return to the market, or otherwise drive the yields down, I’m not sure how they do it. Artificial demand for their own debt hasn’t worked so far.
I, like all of you commenters, agree that the inflation and reflation trade is too early…I like Jim Rogers idea of commodities and farmland, but I think over the intermediate term deflation will still be creeping back into the markets. As other people mentioned, I am NOT worried about yields going up too much. The government has the markets by the balls and they can crash it by talking down the banking recovery, saying credit is tightening again, I also believe the gov. is funding banks which are in turn buying up equities to sustain the rally. It is just a game, and they control it right now.
the damm movie sux it plays on and off.
It’s a big file. Give it time to load….