Nov 17, 2012
“Continuous interventions by governments with fiscal and monetary measures, instead of smoothing the business cycle, have actually led to greater instability. The short-term fixes of the New-Keynesians have had a very negative impact, particularly in the United States.”
Faber’s big beef is with US Federal Reserve chairman Ben Bernanke. But “numerous Fed members make Mr. Bernanke look like a hawk,” he said. Nor does it matter who is running the White House. Because thanks to welfare and military budgets, “spending is out of control, tax is low, and most spending is mandatory.”
Once the deflationary collapse finally arrives (the impossible question is knowing when, said Faber), there will be great opportunities in real and productive assets. But until then, and as for the Gold Price ahead, “Gold is not anywhere close to a bubble stage,” he concluded. And every time he thinks about selling to take profit?
“I keep in my toilet a picture of Mr. Bernanke. And every time I think about selling my gold, I look at it and I know better!”
This article was posted: Saturday, November 17, 2012 at 6:22 am