Marc Faber on the U.S. Dollar and the Stimulus

Gloom, boom, and doomster Marc Faber made the rounds yesterday talking about the future of the U.S. dollar and the news wasn't good - something about its value going to zero, over time, in this talk with Ricky Cash at Bloomberg

He's still clearly in the "hyperinflation" camp, but not just yet because of the near-term oversold condition for the U.S. currency.

On Bernanke: "He's a money printer. He does that well."

At Reuters the topic of discussion is the U.S. economic stimulus program where the prognosis is not good either - something about government spending being inherently inefficient at getting an economy going again and ultimately leading to much higher levels of debt and then much higher interest rates.

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You have to wonder whether there's anyone in the Obama administration who pays any attention to this sort of commentary.

Comments

[User 353732]

Well its the age of decoupling in the country formerly known as America the Beautiful and now regarded by many at home and abroad as US the Blighted.
The dollar is being decoupled from the income and wealth producing capacity of the Nation; the Regime is being decoupled from the Constitution; the people are being decoupled from their legacy, their jobs, their homes and their liberty.
About the only coupling is between undeserved bonuses and Wall St Bosses and between illegitimate power and WashDC Bosses. The bigger the "stimulus" the tighter this coupling. The tighter this malign coupling the greater the decoupling of the dollar from value.

When the dollar was the symbol of America it was as good as gold. Now that the dollar is merely the symbol of the US Regime, it is becoming as bad as stained and peeling wallpaper. What is the price of something without value?

2009 Oct 27 04:37 PM

[The Geoffster]

President Barack Obama has declared: “The long-term deficit and debt that we have accumulated is … unsustainable. We can’t keep on just borrowing from China or borrowing from other countries. We have to pay interest on that debt … and that means we’re mortgaging our children’s future.”

If you believe as I do that Obama is a Marxist and the above quote is a misdirection play, he is playing the Keynesians in his administration as the fools they are. Obama knows that the surest way to destroy capitalism is by debasing the currency and raising taxes. The former is well underway and the latter is being achieved by stealth. As Marx observed," Democracy is the road to socialism. " We have no one to blame but ourselves.

2009 Oct 27 08:07 PM

[Moon Kil Woong]

No the administration doesn't listen to any naysayers. They don't even listen to Volker who is a reknown, experienced economist who happens to be in their administration. They'd rather listen to Summers, Bernake, and Geithner. No wonder we will suffer 4 years of slow to no growth. If we are lucky we get to go from 1 recession to the next withing Obama's term.

Not that I trust the Republican's to do any better after watching Bush trash the US. I think that is the reason 40% of the population wants a new political party. Can you blame them for wanting one that cares a little about the Constitution, the citizens, and a functional free market devoid of corruption and cronyism for once.

2009 Oct 28 12:44 AM

[dingding]

The voters have a choice to make. Let the US continue its irresponsible ways and go bankrupt, or tell its public servants to face reality and lead America to live within its means.

2009 Oct 28 01:52 AM

[MikeD71]

This guy has been calling for the demise of the US for over a decade. Don't dismiss him as a nut though, he has solid credentials, and some of what he says makes sense...and is in line with what's happening. Other "predictions" of Mr. Faber's, however, seems implausible at best. As far as the administration is concerned, it's probably something like..."Marc who?"

2009 Oct 28 08:02 AM

[prairiedog555]

I believe that the US is most concerned with placating the Chinese, so a rise in the Dollar is what they want. And that is what they will get. And stock market has been looking for a reason to tank, and this is it.
Of course the long run inflation is inevitable, but for now that is how I will bet.
I think floating rate funds are one option. BGT, FFRHX

2009 Oct 28 08:18 AM

[Mark A. Sadowski]

"You have to wonder whether there's anyone in the Obama administration who pays any attention to this sort of commentary."

If they are listening to him it's for investment advice for their 401Ks (e.g. he correctly called the stock market bottom in March). But what the man knows about macroeconomics could be engraved on the head of a pin. He's been forecasting hyperinflation for about a decade. He's good at what he's good at and nothing more.

2009 Oct 28 12:54 PM