The Private Sector Is Hurt by Too Much Government Involvement, Says Marc Faber
Business Intelligence Middle East
the Swiss fund manager and Gloom Boom & Doom editor predicted
the US fiscal deficit will remain very large and it will mean that
over time the US dollar will lose its purchasing power, more money
will have to be printed, and additional easy measures will have
to take place.
an interview with Insider
Monkey during the recent Ira Sohn Conference, Faber blamed big
government and Barack Obama for the current tumultuous period, characterizing
the US President as "by far one of the worst Presidents the
US has had" because "none of what he said he would do,
mainly change, has actually occurred".
would be to essentially make the US competitive, but by pursuing
expansionary fiscal policies that enlarge the government, you atrophied
the private sector," he said.
sector is hurt by too much government involvement, Faber added.
the next election cycle, Faber said he expected Obama to be reelected
"because we have some kind of a tyranny of the masses."
essentially more people getting handouts than large tax payers.
And so they are huge voting bloc. Then you have the unions, also
large voting bloc. And then you have the government officials. They
dont want to have cutbacks in government and be fired".
very difficult to cut entitlements. In other words, social security,
Medicare, and Medicaid because nobody wants to do that. so essentially
the fiscal deficit will stay very large and it will mean that over
time the US dollar will lose its purchasing power, more money will
have to be printed, more quantity of easy measures will have to
take place, and so forth," he told Insider Monkey.
own cash and government bonds but you should be in assets like real
estate or equities or precious metals or in commodities, Faber advised.
"The more negative you are about the world and the geopolitical
trends which will lead to war, the more likely it is that you will
do better in equities than say in bonds and cash," he stressed.
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Marc Faber [send him
mail] lives in Chiangmai, Thailand and is the author of Tomorrow's
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