Wednesday, October 9, 2013

Monetary inflation creates a huge pool of liquidity

For the last four years, the US Fed Fund Rate has been essentially zero, and we have a massive money-printing, monetary inflation that creates a huge pool of liquidity.

Basically, what we have seen in the world are the consequences of the crisis the US and world faced in 2008-09 caused by excessive debts brought about by artificially low interest rates.

Marc Faber is an world famous contrarian investor known for his accurate predictions of the stock markets around the world.