Marc Faber the Swiss fund manager and Gloom Boom & Doom editor said the market will eventually perceive the easing moves, announced by Fed Chairman Ben Bernanke last Friday, as being inflationary and that the next five years could be a possibe disaster for Treasury bonds investors.
“It is a fallacy to believe that easy money and the purchase of treasuries will boost economic activity in the US,” Faber told Bloomberg in a phone interview from Thailand.
“Money will flow into equities at least over the next couple of weeks, and into commodities,” Faber said.
“Over the last two years we eased massively in the US and where did the growth take place? In Asia”.
“So when we talk about job creation, do you think that Intel or a small businessman will hire more people in the US because of further monetary printing?” he asked.
“No! they will build factories in Asia and hire poeple in Asia and all the monetary policies in the US create mis-allocation of capital and unintended consequences,” Faber said.
Asked by the Bloomberg anchor if a bubble in Treasuries was one of the unintended consequences, Faber said: The Treasury bonds markets and especially the 10-year and 30-year bonds have been rallying for nearly 30 years, since 1981, and we are close to all-time lows in Treasury yields.
“In my view over the next 10 years, Treasuries will
I was surfing the net looking for Christian news that reported key events. I found this blog. I would like to offer that more Christian news portals should be reporting the breaking news regarding recently released evidence that explosives were used inside the World Trade Center on 9/11.
While many have already forgotten about this event or believe the Iraq war is mainly a battle between good and evil, as GW Bush described, consider that the 9/11 evidence of a cover-up is so strong that even mainstream Fox news began reporting it last week. Christian news portals either seem to fear government reprisals or simply are unaware of the facts. I believe these articles will be informative for you:
Geraldo Turns: Has 9/11 Truth Reached the Tipping Point?
On 9/11, Gallup Polls Show People Waking Up
Good Lord!! They are seeing the next 10 years & there will be no new jobs. The VP already told us that last year.
We all view the Middle East & tyrants being overthrown & Americans sit idle & do nothing here. I just don’t get it, but we do need to take a stand. Good article!! Thanks.
we, in this part of the world are very patient and always give our government the benefits of the doubt. Even though, we have seen them times and times again steal from the country we dearly love. But the time is coming near when the people of America will descend like the founding fathers warned. Good christian people have been too silent to let evil take over our government and its institutions at the point that they started to oppress the very people that put them in power. Maybe it is the will of God that the people so secured by the government begin to realize that the ONLY SAVIOR IS JESUS NOT GOVERNMENT.
Let’s pray for USA and all our elective officials so they turn their faces to Jesus to get solutions to care the nation. Amen
May God Bless us all and May God Bless America