Sonia: So, you are not expecting a rate hike from the US Fed this year?
Marc Faber : What I said is in my view the Fed will not increase rates this year unless there is really a very sharp pick up in the economy or there is a colossal pot-hole developing in stocks. But otherwise I doubt it because the dollar has been strong. Okay, it may weaken somewhat, but I do not think it will collapse against the euro and against the yen and the British pound and so forth. So, the dollar is relatively strong. The economy in the US, the latest say, ten indicators that came out were all on the weak side. And under these conditions I doubt the Fed will increase rates. But that is an academic debate. What is important is I think the Feds and other Western Central Bankers will keep interest rates at a very low level for a very long time and will try to keep interest rates in real terms negative. In other words below the rates of cost of living increases. – in CNBC TV 18
Also from Marc:
India to become the biggest Economy soon
Marc Faber says emerging markets have become relatively inexpensive versus developed markets. Investors are now realizing how inexpensive these EMs are and hence more money is flowing in, he adds.
Marc Faber : Concerning growth, first of all in India and elsewhere among people who invest in India, the view was that India could be the fastest growing economy in the world in the next 5-10 years. I do not think so. That is overly optimistic and overly optimistic expectations. If India, let us take worst and best case. Worst case India grows at 3-4 percent per annum. Best case it grows at 8 percent. Both are not very likely. So let us assume it grows at 4-5 percent per annum. That is still a fantastic growth rate compared to other countries, compared to the whole of Western Europe, compared to the United States. People have misconception about growth; they think that an economy can grow at 8-9 percent forever, that is not the case, it is not possible. So, I am happy if India grows say at, 4-5 percent per annum.
