Monday, September 18, 2006
[RealEdge] TodayOnline : Dr Doom sees gloom in the US
 This story was printed from TODAYonline | |
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| Dr Doom sees gloom in the US Monday ? September 18, 2006 Christie Loh christie@newstoday. Investment guru Marc Faber yesterday lived up to his name as "Dr Doom". At a time when most are waxing lyrical about the rosy global outlook, the Swiss-German warned that goods had become too expensive and the world's top buyer ? the United States ? could soon be punished for spending beyond its means. Speaking during a seminar held in conjunction with the IMF-World Bank meetings, Dr Faber said: "In my opinion, the highest risk is hyperinflation. The Fed will have to print money to monetise debt, to support the stock market and housing market. And then the whole system of capitalism will break down." For several seconds, no one spoke until snatches of giggles broke the silence. "Not tomorrow," added Dr Faber with a straight face. Hyperinflation is when general prices of products and services rocket wildly, usually because a currency has rapidly lost its value. Such a scenario is off the radar for many market watchers, but contrarian, "long-term" outlooks are the hallmark of the Hong Kong-based fund manager. "We have today an economic growth in Asia that is far larger than the US. The whole Asia region could actually tell the world, 'No more trading with you, we'll just grow in Asia.' Yes, possible," Dr Faber said. To prove his point, Dr Faber told the audience to each buy 30-year US government bond. Hang it on the living room wall, he said, to show your grandchildren how the US dollar and US treasury bonds will become worthless over time. Or so he says. | |
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// posted by Shajahan @ 10:51 AM 