'Fed Will Print and Print and Print Until the Final Crisis,' says Marc Faber
Marc Faber the Swiss fund manager and Gloom Boom & Doom editor said the US Federal Reserve will create a "final crisis" by continuing to print money because it is underestimating the strength of the economy which shows no signs of stenghtening but signs of weakening everywhere in the world.
Speaking to CNBC Worldwide Exchange Tuesday in a live interview from Zurich, Faber said: " They will print and print and print until the final crisis wipes out the entire system."
Investors should have listened to me already six months ago when I wrote that the Fed will continue to monetize. They will never let up", Faber said.
Asked if the Fed policy is driven by concerns about deflation above all, Faber said: " They are very bad forecasters of economic events".
That was the case with Mr Greenspan but "Mr Bernanke is in the same boat. He has no clues what the economy is doing," Faber added.
Explaining his argument, Faber went on: "They misread in 2007 the severity of the forthcoming economic crisis and then they misread in the last few months the strength of the economy, which shows no signs of strenghtening but signs of weakening everywhere in the world."
August 5, 2010