faber changes key

[jk]

i can't say marc faber has changed his tune, but he's at least modulated to a different key. from his oct newsletter:

...for this reason, I continue to argue that, in the long term, the US Federal Reserve has no other option but to print miney, and that a decline in asset prices will occur in real terms (inflation adjusted) rather than in nominal terms.

in prior pieces he had mentioned the notion of a "real" asset correction without a nominal one, but this is the first time i recall that he's been quite so definitive.

he goes on..

In my opinion, the asset bubbles are simply too big, and so much of the economy depends on them not bursting and seriously deflating that more and more money (credit growth) will be required to keep them going. This is not to say that individual asset markets cannot deflate despite expansionary monetary policies.