Marc Faber: “Messiah” Central Banks Helicopter Money Printing “Will Not End Well”
SilverDoctors.com
April 18, 2016
Submitted by Mark Obyrne:
Marc Faber has warned that a new financial crisis is coming and will be worse than the 2008 one and told Bloomberg TV that the “messiah” central banks “helicopter money ” policies “will not end well.”
Faber warns that ultimately “you cannot grow an economy by just throwing money at people” and that “QE for the people” will be like “throwing gasoline on a fire.”
Faber is entertaining, has a good chuckle at the central banks and IMF’s monetary policies and laughs at the idiocy of the IMF’s recent counterfactual statement when Lagarde said the world economy would be worse off without negative interest rates:
… they will always say, if we hadn’t done this and hadn’t done that, it would be much worse. They have no proof for this assertion. In my view, it would have been better to let the crisis, already the first one in 2000, run its course and prevent the colossal credit bubble that was built up that then led to an even bigger crisis, and now they’re doing the same mistake.
According to Faber, credit as a percent of the global economy is up “very strongly” since 2007.
“[M]ost of the credit is now for transfer payments, and that is very negative for long term structural economic growth because it allows, actually, the government to become bigger and bigger and to have more regulations,” Faber said. “And I can tell you, I’m in the financial sector and I talk to people in the financial sector. Half the time is nowadays consumed with filling out forms by regulators.”
The Rest…HERE
