Printing Money Solves No Crises: Faber
by Crystal Hsu
publisher of the Gloom, Boom and Doom report, yesterday reiterated
his criticism of money printing practices, which he believes will
continue in the US, Europe and elsewhere, causing bubbles such as
those seen in the Chinese real-estate market.
wave of quantitative easing by the US Federal Reserve is just a
matter of time, said Faber, a contrarian investor who has
been referred to as Doctor Doom for a number of years.
is the way global governments will evade debt crises, such as the
one that is gripping Europe, Faber said in Taipei.
forestall the crisis rather than solve it, keeping prices elevated
for assets like stocks, real estate in some areas and precious metal,
policies, including low interest rates, intended as a short-term
fix, can have unintended consequences later, Faber said.
banks can inject fresh funds into the markets, they cannot control
where the funds flow, he said, adding that money printing has encouraged
speculation on commodities whose prices have gone up faster than
real demand in recent years.
people will benefit from money printing that deflates the purchasing
power of currency ... but the middle and lower income classes are
being hurt, said Faber, an investment adviser focused on value
investments, who owns Marc Faber Ltd.
resources are basking in the trend in light of their sharp increases
in international reserves, which Faber said was symptomatic of monetary
inflation and a shift in wealth.
economy of China has pushed up its inflationary pressures, with
the bubble in the real-estate sector on the brink of bursting, Faber
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Marc Faber [send him
mail] lives in Chiangmai, Thailand and is the author of Tomorrow's
Best of Marc Faber