A prominent PhD economist has warned that The US economy will
be subject to rampant "hyperinflation" at levels rivaling
those in Zimbabwe if the Federal Reserve refuses to raise interest
rates.
Marc Faber, founder and managing director of Hong
Kong-based Marc Faber Ltd., warned Bloomberg News that prices
may increase at rates "close to" Zimbabwe’s
gains.
"I am 100% sure that the U.S. will go into
hyperinflation," Faber said. "The problem with government
debt growing so much is that when the time will come and the
Fed should increase interest rates, they will be very reluctant
to do so and so inflation will start to accelerate."
Faber is well respected for accurately predicting
both the financial crash of 1987 and the current crisis.
His latest prediction hits home when you consider
that the inflation rate in Zimbabwe has risen to 231,000,000%,
effectively rendering the country's currency worthless and prompting
it to print
a bank-note worth Z$100bn, from which you'd be
lucky to get change for a loaf of bread.
Hyperinflation has left at least 80% of the Zimbabwean
population in abject poverty, facing mass shortages of basic
goods.
Faber advised buying gold and told viewers he was adding to
his gold investments.
Watch the full 5 part interview with Marc Faber
below or a summary of his comments here:
A prominent PhD economist has warned that The US economy will
be subject to rampant "hyperinflation" at levels rivaling
those in Zimbabwe if the Federal Reserve refuses to raise interest
rates.
