Famed Swiss investor Marc Faber, author of the Gloom Boom & Doom newsletter, on Wednesday warned that the U.S. is “creating bubbles and bubbles and bubbles” by printing money and sticking with poor financial policies. The coming crisis is going to be “systemic” and not even gold will be able to shield people from it, he explained.
When asked why the price of gold isn’t holding up as a “safe haven,” Faber had this to say:
“When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn’t flow evenly into the system.
Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession. More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S.
So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide.”
Additionally, Faber said he sees “considerable downside risk” in the U.S. stock market.
Watch the segment via Bloomberg below:
(H/T: Business Insider)