Posted on 06/02/2010 7:56:10 AM PDT by TigerLikesRooster
Faber: Central Banks Will Never Tighten Rates Again
Wednesday, 02 Jun 2010 09:06 AM
By: Julie Crawshaw
Economist Marc Faber said central banks will never tighten rates again — all they will do is print more money.
For that reason, Faber thinks that cash and long-term bonds are a bad place to hold money.
Equities are an avenue to preserve wealth but are somewhat risky given the effects of rampant currency depreciation, says Faber, the publisher of "The Gloom, Boom & Doom Report."
Faber considers precious metals a sound place for wealth preservation.
Though the United States is still a large economy, it’s not growing, while the growth in the emerging world is — and will continue to be — strong, Faber notes.
(Excerpt) Read more at moneynews.com ...
P!
I wonder who Mr. Faber likes in ther Belmont Stakes?
is there something between bonds/cds/money market and stocks?.....risk wise?
Maybe long term but since the 2008 crash delationary forces have ruled. He could never tell us exactly when the inflationary forces woill take over.
The feds now have an incredibly powerful tool to fight inflation.
They have almost 2 trillion dollars worth of mortgages. Whenever inflation starts up they can just drop a bunch of mortgages on the market plus they can encourage the banks to drop a lot of the property they have been holding off the market.
The net effect would be to flatten real estate inflation.
In effect, the feds don’t need to raise interest rates to brake inflation. They have other tools.
got any pre ‘64 coins kicking around??...Ill trade ya 2 new ones for one old one....U can double your money!!!
I have noticed some inflation but the recessionary forces (credit contraction) are deflationary at the same time. Much of the inflation we see are future bets on inflation, like gold.
Where I live grocery stores are squeezed between the two and are replacing union employees with machines to save money.
It’s always in a state of flux... sometimes long term bonds are the safest thing around - now - not so safe. My guess is ( and it’s only a guess) short term tresuries, gold, foreign bonds (not tied to the dollar - from currency strong countries)... Like you, I’m just watching - and praying.
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