Faber Warns ‘Everything Will Collapse’
Famed economist Marc Faber appeared on Bloomberg TV with a harsh, direct warning to investors.
“U.S. monetary policies will destroy the world,” he said, referring to the new round of stimulus – QE3, or “QE Forever” – the Fed plans to launch this year.
As the publisher of the influential Gloom Boom & Doom report, Faber is well-known for making ominous predictions. Many regard him as the first to warn investors to get out of the stock market one week before the October 1987 crash.
And since the 2008 meltdown, he’s been a fierce critic of the Fed’s policy of money printing, arguing it only creates a phony recovery.
So it wasn’t surprising to hear him speak out against Bernanke’s most recent stimulus plan, quantitative easing or QE3.
What was surprising – and frightening – was the level of wealth-destruction he believes will occur.
According to Faber, “eventually we will have a systematic crisis and everything will collapse.”
Faber couldn’t pin down the timing of his alarming prediction, but said the bigger concern wasn’t when the economic storm will begin, but how high the market will go until then.
“The question is really between here and then,” he said. “Will everything collapse with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election the next Fed chairman will also be a money printer. And so it will go on.”
Faber’s not alone.
A group of his economic peers agree that with more central bank action like QE3, global economic collapse is imminent.