Posted on 06/26/2009 5:31:54 PM PDT by SeekAndFind
Contrarian guru Marc Faber predicts we'll soon see inflation of 10 to 20 percent.
The numbers will rise so fast because the government "massively" understates the country's inflation rate, Faber said.
To get a true reading he advises ditching core inflation numbers, including the Consumer Price Index.
"It's a lie what they publish," Faber told CNBC.
"If you underweigh education costs, and if you underweigh health care costs, then you come to a totally different result," he said.
Since the creation of the Federal Reserve Bank in 1913, the dollar has lost 95 percent of its purchasing power, Faber said.
“It took 100 years to lose 95 percent (but) I think the next 94-percent loss in purchasing power will happen very quickly,” he said.
In such a volatile market, Faber thinks the safest place to invest is in equities or assets, even real estate.
"I'm not very bullish about real estate prices in the U.S., but I'd rather be in real estate than in 30-year U.S. bonds," he said.
U.S. consumer prices edged up in May on higher gasoline prices, but fell over the past 12 months by the most since 1950, a sign inflation is no threat as the country fights a brutal recession, Reuters reported.
Compared to the same period last year, however, consumer prices fell 1.3 percent, the largest decline since April 1950.
"These numbers … clearly show that at least for now the immediate concerns over inflation are not justified," Marc Pado, market strategist at Cantor Fitzgerald, told Reuters.
I can’t imagine any other way out of the mess BHO has put us in.
Sure wish GWB hadn’t put his ‘blessing’ on the whole fiasco before he left office.
I can imagine Zero devaluing our currency to say, $10,000 per oz of gold, then pulling an FDR and confiscating it.
Of course not. Demand is still falling. Businesses will lose money for awhile in an attempt to stay in business hoping things pick up later. The real question is how far off later is. It looks to be a lot longer than people think.
Weimer republic style inflation coming... we all know what followed.
It has put American in the position that we will be forced to look to the feds for help. They are systematically dismantling the middle class and in doing so will force them to look to gov for help.
Looks like I’ll be buying silver, ammo and bug-out gear a little faster.
I can imagine it too. I can see him defaulting on all America's debts and issuing a new highly-controlled currency that would require some form of government permission to own/exchange. In this way, they extend their control almost completely.
That's what dictators do.
Well, actually, what followed is already in the White House.
How will that happen? One problem with all this..”Obama is hoping we all come to him” is THEY HAVE NO MONEY EITHER. We are all assuming there is some grand plot here, it’s just a matter that we have morons making it up as they go along. I read before the campaign that Obama got into the high 900’s on his SAT, about the same SAT score of your average pot head or dumb jock. He’s a dimbulb, a moron, a sponge cake headed hamster. We have idiots running things, they can’t run a government any better then they can orchestrate some grand conspiracy. That is what makes them dangerous, they are flailing about, with flailing comes frustration, with frustration out comes the guns. But some grand Marxian plan, we give them too much credit.
Anyone know what inflation were under Carter? I know interest rates shot up to 15 to 16%.
RE: Anyone know what inflation were under Carter?
Topping 18% interest and 18% inflation, according to this article from Time magazine.
http://www.time.com/time/magazine/article/0,9171,921854,00.html
Obama’s administration might top that.
Bingo! We have a winner. You hit the nail on the head. Kill the middle class and you control the country.
bump
no way his SAT was above 800. Do NOT underestimate the puppetmasters behind Obama. You will do that at your peril. In a week they took out Sanford and Ensign and I bet there will be more to come.
Thanks.
Cantor Fitzgerald. Would that be the same Cantor Fitzgerald that sells more Govt and Muni bonds than anyone else. They wouldn't have a dog in this fight by any chance would they ?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.