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Frank Holmes And Marc Faber

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Download the presentation here:

http://webcast.streamlogics.com.edgesuite....ank_FaberWC.PDF

Bloomberg story:

http://www.bloomberg.com/apps/news?pid=206...id=az3plDWXOx2c

Faber Says ‘High’ U.S. Deficit Will Spur Inflation (Update1)

By Elizabeth Campbell and Millie Munshi

Sept. 9 (Bloomberg) -- Investor Marc Faber said government spending and low interest rates will keep the U.S. deficit “very high†and will spur inflation.

Interest rates will be kept “artificially low†and remain “near zero for a long time†in the U.S., Faber, the publisher of the Gloom, Boom & Doom report, said today in a presentation broadcast on the Internet. “The deficit will stay very high and that will create some kind of more inflation down the road.â€

The Federal Reserve is likely to continue to “print money†in an effort to boost the U.S. economy, and that, combined with low interest rates, will spur weakness in the dollar, Faber said. U.S. President Barack Obama has pumped up the nation’s marketable debt to an unprecedented $6.94 trillion as he borrows to spur the world’s largest economy.

“Money printing will be unprecedented because the deficit will need to be financed,†Faber said. “The weaker the economy, the more the stock market will go up because the money that is being printed will go into†speculative assets.

Faber, who recommended buying U.S. stocks in October, before the biggest rally in more than 70 years, said investors should buy equities instead of bonds or holding cash.

“If the dollar is weak, there is a very good chance that equity prices could rise quite substantially,†Faber said. A weaker dollar is “good for asset prices.â€

Buying Commodities

Faber also recommends that investors buy precious metals and other raw materials to hedge against declines in the U.S. currency. Before today, the greenback slid 4.9 percent against a basket of six major currencies this year and the 19-commodity Reuters/Jefferies CRB Index climbed 10 percent.

“The dollar will continue to implode against commodities,†Faber said. “I don’t see why someone would hold dollars and not own gold. More and more people will come to the realization that they have to own some resources, some commodities, some mining companies and some physical precious metals.â€

Global economic growth won’t recover to pre-recession levels, Faber said.

“I don’t think consumption will come back,†he said. “I don’t think there is much of a recovery. You have to differentiate between the stock market and economy activity.â€

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Oh come on! Where's the life in HPC these days? Excellent slide set in the presentation - some graphs I've not seen before.

Pay attention! :blink:

Edited by AvidFan

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Faber, who recommended buying U.S. stocks in October, before the biggest rally in more than 70 years, said investors should buy equities instead of bonds or holding cash.

A good find. The graphs were v. interesting. The quote above though - I assume as Faber is still encouraging folks to buy stocks that he's going to quietly exit the market, taking his very nice returns since last October with him............... ;)

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Oh come on! Where's the life in HPC these days? Excellent slide set in the presentation - some graphs I've not seen before.

Pay attention! :blink:

I get the feeling there is a lot of denial in here at the moment.

Instead of trying to understand what is happening this kind of info is just being ignored.

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Hell of a lot of denial and confusion - and on HPC as well! I think everyone has given up, haven't they?

Not this bear !

I keep checking the graph on the HPC homepage. You cannot buck the market. You might be able to delay the inevitable, but not put it off. That curve has to some way to go yet ;)

As for all the green shoots and goodnews VI propoganda we're being ambushed with - it's just background "noise" to be ignored.

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Not this bear !

I keep checking the graph on the HPC homepage. You cannot buck the market. You might be able to delay the inevitable, but not put it off. That curve has to some way to go yet ;)

As for all the green shoots and goodnews VI propoganda we're being ambushed with - it's just background "noise" to be ignored.

If only it was so simple.

No offense meant, but you sound like Sibley in reverse. Not wrt to him being a tw@t, but wrt his absolute determination to be a bull no matter what is staring him in the face.

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Faber Says ‘High’ U.S. Deficit Will Spur Inflation (Update1)

By Elizabeth Campbell and Millie Munshi

ta for posting, faber is numero uno on my commentator list

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