Asset Bubble won't Burst as long as More Money is Printed: Faber

In an interview with Business Standard Marc Faber, the author of Gloom, Boom & Doom Report, spoke on how central banks’ asset purchases – which have only increased over time – will impact prices. The current asset bubble which is underway, fed by central banks’ liquidity, will last a long time, he contends. 

 

As long as more money gets printed ‘continuously’ the bubble won’t burst, he says. Prices of assets will increase, which will result in a bull market. One of the fallouts of this bubble is that the value of paper will depreciate, he said. Printing money will help the world shift into 'state-ownership, socialism and communism,' he said. 

 

Britain is not important in the global scheme of things, said Faber, who goes on to add that growth rates in India and China will hold key. “If India gets its act together, then it could have a growth rate of maybe 5 percent per annum.' In order for India to make a mark on the global scene, businesses here will have to be more liberalised and government should intervene less, he said. 

 

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