"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Wednesday, February 2, 2011

Marc Faber: We're All Doomed in the Long Run and Bernanke is a Liar

Ben Bernanke:
Worries are overblown that the
Federal Reserve's plan to aid
the economy could unleash inflation

Marc Faber
“I guarantee you … the annual cost of living increases are more than 5 percent, and the Bureau of Labor Statistics is lying,” Faber told CNBC at the Russia Forum in Moscow.

“Mr Bernanke is a liar; inflation is much higher than what they publish. I would imagine for most households it’s between five and eight percent per annum in the United States and in Western European countries maybe a little bit lower but also around four and five percent per annum,” he said.

Turning to the global economic recovery, Faber said the West was bottoming out and recovering, which meant the global economy looked “OK” for the next six months.

But “we’re all doomed in the long run,” he said.

“We have to realize it’s an artificial recovery driven by ultra-expansionary, monetary policies and also ultra-expansionary fiscal policies.

In other words, the deficits of governments are huge and that will lead down the road to renewed problems,” he said.

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