Americans to suffer through higher food, gas & energy prices
Paul Joseph Watson
September 19, 2013
Financial experts have slammed the Federal Reserve’s decision to proceed with “QE unlimited” by refusing to taper its money printing madness, with famed investor Mark Faber predicting the move will lead to a “total collapse” of the economic system.
Despite expectations amongst many that the Fed would scale back its $85 billion a month bond purchase plan, the central bank announced yesterday that it would prolong the policy.
Investment guru Mark Faber reacted by telling Bloomberg that the decision not to taper was all about protecting the financial interests of the elite while ordinary Americans will suffer the consequences through higher gas, food and energy prices.
“My view was that they would taper by about $10 billion to $15 billion, but I’m not surprised that they don’t do it for the simple reason that I think we are in QE unlimited. The people at the Fed are professors, academics. They never worked a single life in the business of ordinary people. And they don’t understand that if you print money, it benefits basically a handful of people maybe–not even 5% of the population, 3% of the population,” he said.
“And when you look today at the market action, OK, stocks are up 1%. Silver is up more than 6%, gold up more than 4%, copper 2.9%, crude oil 2.68%, and so forth. Crude oil, gasoline are things people need, ordinary people buy everyday. Thank you very much, the Fed boosts these items that people need to go to their work, to heat their homes, and so forth and at the same time, asset prices go up, but the majority of people do not own stocks. Only 11% of Americans own directly shares,” added Faber.
Asked what the endgame was, Faber responded, “The endgame is a total collapse, but from a higher diving board. The Fed will continue to print and if the stock market goes down 10%, they will print even more. And they don’t know anything else to do. And quite frankly, they have boxed themselves into a corner where they are now kind of desperate.”
Veteran investor Jim Rogers also slammed the Fed’s excessive money printing, warning, “The world will suffer very badly when this comes to an end. It’s an artificial sea of liquidity.”
The chairman of Rogers Holdings added that the only factor that may stop central banks around the world from printing money is if markets say, “we’re not going to take your garbage paper anymore.”
Rogers also emphasized how it doesn’t really matter who gets the top job at the Fed because the same policies would still be pursued.
“This is all a farce. They’re both of the same ilk,” he said, adding, “As long as the regular people are running things, it’s going to be the same thing…. This is not good for the world. It’s good for them and their friends.”
With Larry Summers out of the picture, Janet Yellen is firmly in the frame to be the first woman ever to chair the Federal Reserve. As Michael Snyder documents, Yellen, the architect of many of Ben Bernanke’s monetary policies, represents “Bernanke on steroids,” and is a firm believer in regular government intervention in financial markets.
Despite the media claiming Yellen has a “good track record,” in February 2007 she dismissed the notion of a housing market collapse and completely failed to anticipate the 2008 financial crisis.
“She will make Mr. Bernanke look like a hawk,” said Faber, noting that Yellen is so obsessed with artificially low inflation rates that she once advocated negative interest rates.
“She, in 2010, said if could vote for negative interest rates, in other words, you would have a deposit with the bank of $100,000 at the beginning of the year and at the end, you would only get $95,000 back, that she would be voting for that,” said Faber, adding that the Fed has no clue about the real rise in the cost of living and that the consequences of such policies inevitably lead to bigger government and less freedom.
Both Rogers and Faber said they continue to buy gold, even thought it may currently be in a “rest” period, as a protection against the ludicrous policies of the Fed and general global instability.
Meanwhile, in a bizarre Orwellian twist of logic, President Obama gave a speech in which he argued that raising the debt limit did not raise the debt of the United States.