Marc Faber on hedging Bernanke’s QE3 bet with gold, land and equities!
Welcome to Capital Account. Today, the US Fed gave QE-addicted markets one more hit of the stimulus drug as it announced another program to purchase securities. The Fed launched an open-ended program to buy $40 billion a month in mortgage-backed securities, and will continue to snap them up until the labor market improves. The Fed also committed to preserving record low interest rates even after the economy strengthens. Just why is the Fed pursuing such an accommodating stance?
In response to this move, gold climbed to a six-month high. Marc Faber, publisher of the ‘Gloom Boom & Doom’ newsletter, has said that he will not sell any gold as long as people like Ben Bernanke are running the world’s central banks. We ask Dr. Faber about his near-term outlook on gold, and what he thinks of the US Fed’s monetary policy.
Also, a recent editorial from China’s state news agency Xinhua warned that massive spending to boost the Chinese economy could be counterproductive. How would this affect China's growth, or its possible slowdown? We ask Marc Faber, founder of Marc Faber Ltd and author of the book ‘Tomorrow's Gold,’ about the likelihood of economic contraction in China and other Asian nations.
And in today's episode of ‘Loose Change,’ Lauren and Demetri discuss the reports of Jon Corzine’s meeting with officials from the US Department of Justice last week, ten months after MF Global collapsed.