Marc Faber: Fed is source of all bubbles, will burst in three years

From bonds and stocks to farmland and bitcoins, Marc Faber, the publisher of the Gloom, Boom & Doom Report, has said before that the United States market is “in a massive speculative bubble” that will eventually pop. The bubbles exist because of the Federal Reserve’s excessive money printing schemes.

Faber repeated those sentiments in an interview with Casey Research’s “Sound Money” in which he predicted that the immense bubble in the U.S. will inevitably burst within the next three years. He further discussed how the economies of the U.S. and the rest of the world are in a fragile state, inflation will affect the average American and gold and silver are the triumphant alternatives to the financial collapse.

“We’ve now been five years into the bull market and the US economy bottomed out in June 2009. We already had a crack-up boom—not in the economy of the typical household, but in the economy of the super-well-to-do people, whose asset prices rose dramatically and as a result created a huge wealth inequality,” said Faber.

Since the beginning of the Great Recession, the U.S. central bank has printed vast sums of money and if any acceleration takes place under the reign of Fed Chair Janet Yellen then the “bubble, maximum, will burst in three years’ time.”

“Once the collapse happens, the power of central banks will be curtailed greatly because people will realize who brought along first the Nasdaq bubble in 1999: The Federal Reserve. Who brought about the housing bubble between 2001 and 2007? The Federal Reserve. And who is bringing now along another great credit bubble and asset bubble? The Federal Reserve.”

At the present time, Faber believes that nothing is really cheap for investors to acquire. However, if one were to compare precious metals, real estate, bonds and stocks, then gold and silver are the best options for investors to buy.

“I think that gold and silver [are] relatively inexpensive because they have had big corrections already, and you should not forget that the global bond market now is over $100 trillion,” added Faber.

Gold is trading at just over $1,300, while silver is bordering at the $20 mark (at the time of this writing).

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