Marc Faber Warns China’s Credit Crisis Unwind ‘Will Be a Disaster’
Market Oracle
Mar 18, 2014
Marc Faber, publisher of the Gloom, Boom & Doom Report, appeared on Bloomberg Television today to discuss the state of the Chinese economy.
Faber told Trish Regan and Matt Miller “I think that we had a colossal credit bubble in China and that this credit bubble is now being gradually deflated….if I look at export figures from China, and they are very closely correlated to overall economic growth, then there is a huge discrepancy between what China reports and what China’s trading partners are reporting.”
He said, “There’s lots of funny things that are happening in China. And when the whole thing unwinds it will be a disaster.”
TRISH REGAN: China’s currency fell to an 11-month low after China’s central bank doubled the yuan’s daily trading range against the dollar. The decision to allow greater exchange rate fluctuations comes at a time when China’s economy is showing some serious signs of losing momentum. The government is targeting a 7.5 percent growth rate. That’s actually the slowest since 1990. But leave it to the author of Gloom, Boom and Doom, that report, to say that it will likely be a little more than half that. Marc Faber joining us right now on the phone.
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