Faber - US Fed policies will destroy the world economy

Ateneo Professor on Entrepreneurship

From Moneynews by Forrest Jones

The US Fed policies will destroy the world according to Marc Weber of Doom Gloom and Boom.

This subject matter, the QE 3 (quantitative easing 3) has been the subject of several posts all ready.  The US Fed under Bernanke will purchase $40 B worth of securities from US banks monthly (inject liquidity) into banking system.

Many economists are aghast over this QE because it weakens the value of dollar, is inflationary.  Furthermore, the objective of increasing production activities, and job creation activity is not met.

Why, because the liquidity is merely being spent to buy stocks.

The stock market has been fueled largely, artificially by this Fed policy.  But it has revived housing which caused the collapse primarily.  The QE has not percolated to the man on the street;  it has made the rich richer though.

US Fed policies will destroy the world