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.

Peter Schiff: The bond market is the mother of all bubbles

Peter Schiff and Marc Faber explaining risk reality to CNBC varsity cheerleaders.

"The bond market is the mother of all bubbles right now and I think when it bursts the losses will dwarf the combined losses of the stock market bubble and the real estate bubble. The problem is that there is no way for the government to pay things back, the only way they could do that would be tax increases which are horrendous and would never be accomplished..."

"This decade will be the worst decade for bonds in US history..."

At 7:00 am CDT Tuesday, August 24th, the bond market continues its rally as the 10 year treasury is printing 2.54% (down from 2.61% Monday) and lowest level since March 2009.