Post by jeffolie on May 27, 2009 11:46:57 GMT -6
Marc Faber predicts US hyperinflation.
So how important is it that Marc Faber predicts hyperinflation? He will have no impact on the markets for sure. But, is he correct? I believe that by 2012-13 the US will have very rapid inflation but I doubt the FED will keep rates suppressed sucessfully as Faber predicts. With rising rates, America may well follow Iceland into a fatal currency crisis and a failure of the Dollar as the world's reserve currency. This would favor precious metals but how about foreign currencies? China's exports to America would collapse as well as Europe's. Trade would collapse. jeffolie predicts: the end of the FINANCIAL world as we know it by 2013.
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U.S. Inflation to Approach Zimbabwe Level, Faber Says
May 27 (Bloomberg) -- The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said.
Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.
“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”
www.bloomberg.com/apps/news?pid=20601068&sid=avgZDYM6mTFA&refer=economy
So how important is it that Marc Faber predicts hyperinflation? He will have no impact on the markets for sure. But, is he correct? I believe that by 2012-13 the US will have very rapid inflation but I doubt the FED will keep rates suppressed sucessfully as Faber predicts. With rising rates, America may well follow Iceland into a fatal currency crisis and a failure of the Dollar as the world's reserve currency. This would favor precious metals but how about foreign currencies? China's exports to America would collapse as well as Europe's. Trade would collapse. jeffolie predicts: the end of the FINANCIAL world as we know it by 2013.
===========================================================
U.S. Inflation to Approach Zimbabwe Level, Faber Says
May 27 (Bloomberg) -- The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said.
Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.
“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”
www.bloomberg.com/apps/news?pid=20601068&sid=avgZDYM6mTFA&refer=economy