Tuesday, October 18, 2016

Central banks have no option but to continue Money Printing

I was not a fan, for now several years of U.S. equities. But I always said that emerging markets over the last 12 months have become relatively attractive. And so this year, we had the Philippines, Thailand, Indonesia, Vietnam all up in the order of 15 to 25 percent. So I think we have to look at the world...there’s plenty of money floating around the world. One day it goes into commodities and then another day it goes into equities and then it goes into some currencies and then it goes into bonds and so forth. So we can’t be overly diplomatic. 

And number two, I really believe the Fed and other central banks have no option but to print money. The whole system collapses if they stop printing money. And so they will keep on printing money. Now over the last 18 years, the balance sheets of major central banks have gone up 16 times. I think they can go up by another 20 times or maybe 30 times or 100 times. You know if you can print money, you really can print money. The impact on the economy is of course not very good, but you can do it.