US Dollar Rocket vs Euro Submarine

Posted by Marc Faber - GloomBoomDoom.com

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imagesGold inexpensive compared to other asset classes says Marc Faber. Expect US dollar to rally against the Euro and Dollar has been strong against EM currencies.
 
“In the case of the US, money is flowing into the country because it is being perceived to be the only game in town,” he says.”I have pointed out to a meaningful slowdown in the Chinese economy for more than the year now. The government was very good at the massaging the economic data and hiding the slowdown, but it is now becoming clear and clear that the slowdown is on the way. I suppose that China has been and will grow at a maximum of say 4% per annum which is a relatively slow growth rate but it is a very high growth rate compared to say the US or European countries,” Faber says. 
 
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China Could Default says Marc Faber
 
 
 
 
 
“I would like your viewers to consider: Why is the China stock market doing so badly if everything is so great? Why is the price of iron ore collapsing and copper prices going down if everything is so great?”

“If you look at the import figures of the trading partners of China, they are all actually showing that exports of China are hardly growing,”
 

“If someone comes to me and says China has always managed to avoid … any credit problems [because it] has never defaulted, [that] doesn’t mean it won’t happen in future. The same was said about Japan. The Japanese also thought that way until 1989 and they lost control of it,”

“For the world, economic growth in China is very crucial. But not to worry, because the worse the global economy performs, the more geopolitical tensions we have, the more money printing we will have from the Federal Reserve. As it gives the clowns at the Fed another excuse to postpone the tapering,”

….more HERE (CNBC Video)

 

 
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.