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Hyperinflation Could Hit US In 5-10 Years: Marc Faber
- Thread starter Debaser82
- Start date
Quote from makloda:
P.S. Why is he singling out the USA by the way? Ireland, UK, France, Spain, Italy, Portugal, Japan, Greece won't have hyperinflation? Some of these countries' outlook is much much more bleak than the United States'. [/B]
Q. You've lampooned President Obama as "the Great Obutu" and called him a commissar, and you've been critical of the Fed's leadership as well. Would it be fair to say you're contemptuous of American policies and American leadership at the moment?
A. I think that's a fair comment. I'm disgusted by the kind of crony capitalism that has emerged in the United States where the doors of the Federal Reserve, of the US Treasury, of the Wall Street establishment are all open to each other. The economic policy of the US since 1982 has been to stimulate consumption. But you can't create prosperity from consumptionâyou need savings and capital spending.
http://marcfaberblog.blogspot.com/2009/06/latest-interview-risk-reward-not.html
Quote from Copernicus:
Marc Faber lost money for his clients last year even though he supposedly predicted the meltdown. Hes not in HK anymore, must be working on new unburned cient base in Singapore. Might be a great analyst but certainly not a trader.
Do you have a link or source for his 08 performance? AFAIK he's been in his place in Thailand for a few years now.
Quote from LincolnArmy:
I keep listening to these hyper inflationists hoping they will say something that makes me think and possibly makes me revise my opinion.
However, when Faber says that inflation is already taking hold in the US, he loses credibility and sounds like some academic who lives on the other side of the world.
I can list only two things that I pay more for now than I did at the start of the year. Gas and medical insurance. The first's price rise has been universal, the second may just be down to some idiot letting my policy lapse.
The prices of everything else are still falling. Houses, cars, food, electrical goods, clothes -everything is heavily discounted from last year.
Where is this price inflation?
Apparently your wife does the grocery shopping. We are currently running 4-6% real inflation in the overall economy in spite of government lies. I don't see hyperinflation anytime soon but rather an eventual return to double digits, as we touched briefly in 2008. That's inevitable given the Feds approach to dealing with the credit crisis. The official government figures will continue to understate inflation as doing so has become a necessity. Inflation will happen despite continued high unemployment. It won't be pretty. There will be no actual deflation in the overall economy. A few states have experienced deflation in some sectors, namely real estate in Arizona, Nevada, California, and Florida. Oil and other commodities are down at the producer level from their bubble highs of last year and some of this is beginning to show up at the consumer level. Along the Gulfcoast oil rigs are beginning to be shut down. Property and and other taxes are already up or will be going up soon. I don't think anyone knows when exactly inflation will become a recognized problem for the economy, but it seems likely that by 2011 everyone will take notice, even LincolnArmy.
Quote from piezoe:
Apparently your wife does the grocery shopping. We are currently running 4-6% real inflation in the overall economy in spite of government lies.
Housing, stocks, cars, and other big-ticket items are off 20-50%. Wages in many industries are down. Compared to that, a little markup on the groceries is nothing.
More data: http://bloomberg.com/apps/news?pid=20601213&sid=ak53nrCL71MU
College fees rising at their lowest rate for decades, the list goes on.
Quote from Cutten:
Housing, stocks, cars, and other big-ticket items are off 20-50%. Wages in many industries are down. Compared to that, a little markup on the groceries is nothing.
More data: http://bloomberg.com/apps/news?pid=20601213&sid=ak53nrCL71MU
College fees rising at their lowest rate for decades, the list goes on.
I was, of course, referring to the poster's remarkable selective vision when he said he did not see any inflation, because inflation in foodstuffs has been very noticeable to most. We currently have a mixed bag with some sectors up, some unchanged and some down. The more recent figures show about 2% inflation which is low by historical standards. We are coming off a period of considerably higher inflation. I would not expect the low current rate to last much past 2010. One thing that that could potentially hold down inflation would be real progress in actually reducing medical and insurance costs of all kinds, though recent cost movement in these sectors has been up, not down. see shadowstats.com
Quote from piezoe:
I was, of course, referring to the poster's remarkable selective vision when he said he did not see any inflation, because inflation in foodstuffs has been very noticeable to most. We currently have a mixed bag with some sectors up, some unchanged and some down. The more recent figures show about 2% inflation which is low by historical standards. We are coming off a period of considerably higher inflation. I would not expect the low current rate to last much past 2010. One thing that that could potentially hold down inflation would be real progress in actually reducing medical and insurance costs of all kinds, though recent cost movement in these sectors has been up, not down. see shadowstats.com
I suspect that Stagflation will be the real problem in the not to distant future, with your comments reflecting the foundations being set in place. Devalued asset values + spiraling inflation.
Regards
Johno