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"GE and the US should be rated as junk" - Faber
"I think the Yen will weaken" - Faber
"I think the Yen will weaken" - Faber
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Re: Marc Faber on CNBC: Zimbabwe School of Ecnomics (Feb. 6, 2009 :
"GE and the US should be rated as junk" - Faber
That's sorta the implication I had after EJ's comment:
http://www.itulip.com/forums/showthr...2798#post72798
Deflationistas, inflationistas, and hyperinflationistas - Eric Janszen
This modest recent shift away from treasury bonds has been widely reported as signalling an increased appetite for risk. Alternatively, it may signal increased concern about future inflation.
The Fed can expand its balance sheet virtually infinately to increase the money supply to avert a deflation spiral that the deflationistas expect, and can reverse the process to avert an inflation spiral in the future that the hyperinflationsitas expect. What the Fed and Treasury cannot do, however, is increase the purchasing power of the money created, regardless of quantity, or the creditworthiness of the US. These are only earned by sound fiscal, economic, and trade policy, and here the US, in the name of fighting a short term crisis, is heading in the wrong direction, with stimulus programs without a clear return on investment, and spending commitments that bring the nation's global credit limit into question.
For a nation with so much internal and external debt, inflation is not only possible but also the most politically convenient outcome in the long run, and one that the current structure of debt allows without the exertion of political will to deal with the debt in a way that diffuses the growing conflicts of interest between debtors and creditors as the crises deepens. -
Re: Marc Faber on CNBC: Zimbabwe School of Ecnomics (Feb. 6, 2009 :
Faber was busy on Feb. 6, 2009. Here he is on Bloomberg this time:
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