Faber: “I
think we have many dangers. The biggest danger is governments
themselves with their interventions into free markets, and their fiscal
policies....
“In other words, increasing or decreasing government spending.
Usually
it’s an increase, and as a result the government becomes larger and
larger. Of course the larger a government becomes, the less economic
growth you will have. The extremist, socialist-to-communist economy
that we had in the Soviet Union and China, it was a complete failure
economically speaking.
The
other danger is that the Federal Reserve and other central banks around
the world, they think they can essentially steer economic activity by
printing money. This money printing has a number of unintended
consequences that will eventually be very costly.
It’s
not the first time the Fed has intervened. They intervened after the
S&L crisis, after the Tequila crisis, after LTCM in 1998, and then
after (the year) 2000 when the Nasdaq collapsed. They kept interest
rates artificially low which led to a credit bubble, the housing boom
and subsequent collapse.
Read more @KingWorldNews.com
No comments:
Post a Comment