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Marc Faber On Keynesian Folly, The ‘Missing’ Inflation, And Bubble-Blowing
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden / 08/22/2012 21:04
In as-comprehensive-an-explanation-as-we-have-seen of the monetary malfeasance and misunderstanding of the standard Keynesian central-banker, Gloom-Boom-Doom’s Marc Faber addressed an instutional audience in the Middle East earlier this year. Faber begins by explaining his (correct) view that ‘Keynesian’ intervention into the free-market or capitalistic society (with fiscal and monetary measures), in order to ‘smooth’ the business cycle, has in fact created a more violent business cycle – as they attempt to address long-term structural problems with short-term fixes (or bubbles). His lecture expands from his insight that in 1970 not a single investment bank was public – they were all private partnerships (implicitly playing with their own money as opposed to other-people’s – dramatically impacting the risk profile in the world) to the notion that central bank money printing (pushing dollars out the door) does have inflationary symptoms – but they do not necessarily have to show up in wages or CPI in the US (think Chinese wage inflation, or commodity price rises, or Aussie housing bubbles). Central bankers can determine the quantity of money but they cannot determine what we do with those USD bills. Must watch.
Thanks to BrotherJohnF
2012-08-23 01:07:54
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