Wednesday, September 25, 2013

Marc Faber says Janet Yellen to beat Bernanke

She[Janet Yellen] will make Mr Bernanke look like a hawk. In 2010 she said if she could vote for negative interest rate, in other words you have a deposit with the bank at $100,000 at the beginning of the year and in the end you would only get $95,000 back, that she would be voting for that.

Basically her view will be to keep interest rates in real terms, in other words in inflation adjusted, and don't believe a minute the inflation figures published by the Bureau of Labor Statistics.

The consequences of these monetary policies and artificial low interest rates is that government gets bigger and bigger and you have less freedom. That is the consequence.