Friday, May 2, 2014

Emerging Markets are being Stifled by Inflation

I travel a lot, but I would say that I don’t see a meaningful economic improvement anywhere. In fact, when I travel throughout Asia I see economies that are no longer growing. ...If central banks argue that we need an inflation rate of 2%, then I could argue that maybe it would be better to have deflation of 2% - 3% per annum every year because if prices went down for food, energy, healthcare and so forth, then the typical household would be better off because it would have more money to spend.

And taxes have been going up for most people. They may not see it, but each time they use a public service, whether it’s a train from (point) A to (point) B, or a toll road, or a tunnel fee, they pay much more than before.

I think the central banks are supported by the media, and I have to say that at least you (at KWN) present an objective picture of what is happening in the world, whereas the talking heads of mass media, they always kind of support what central bankers are doing -- when in fact, because of the money printing the typical household is being hurt....

- Source, Marc Faber via King World News, read more here:


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