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Marc Faber: If I Were Bernanke, I Would Resign
Central bankers are “counterfeit money printers” and Federal Reserve Chairman Ben Bernanke should resign for messing up the U.S. economy so badly, Marc Faber, author of the Gloom, Doom and Boom, told CNBC on Friday.
He said Bernanke was one of the main proponents of an ultra-expansionist economic monetary policy that was to blame for the latest financial crisis.
“If I had messed up as badly as Bernanke I would for sure resign. The mandate of the Fed to boost asset prices and thereby create wealth is ludicrous — it doesn’t work that way. It’s a temporary boost followed by a crash,” Faber said.
Faber, who rose to prominence after predicting the 1987 financial crash report and dubbed “Dr Doom” for his negative predictions, said: “This unlimited QE (quantitative easing) , buying mortgage-backed securities (MBS) and continuing operation twist has the implication of simply having asset prices go up and the money flows down to the Mayfair economy,” Faber said.
A Mayfair economy is one which benefits the wealthier and better off in society. Faber said this latest round of QE would not help the “man on the street”.
“QE helps rich people whose asset prices go up and whose net worth then increases but it doesn’t flow to the man on the street who is faced with higher costs of living with price rises. You just have a small economy that is booming but the majority of the economy is damaged by QE,” he said.
Bernanke announced on Thursday that the Fed would buy $40 billion a month in MBS, giving the impression that this time around there would be no time limit to the program, which would only stop once a sustained uptick in employment is visible.
“The money printers are responsible for this crisis. If we continue with this expansionist monetary policy we won’t be facing a fiscal cliff it will be a fiscal grand canyon,” he added.
norman einstein
September 15th, 2012
I read this yesterday. IMHO, it’s a concise explanation as to why injecting more paper into circulation is dumb. Bernanke is only doing it to try and keep the Present on life support for a couple more months.
Bernanke SHOULD have resigned a long time ago.
The Fed is a joke. An unfunny one.
chico escuela
September 15th, 2012
This is good news. for anybody who has about five years or less to live. Keep stealing from future generations to pay for our retirement and health care. I know many of you who are under fifty or so don’t pay taxes, or are collecting some entitlement from government. Don’t worry, we will just borrow it in your name and when the bill comes due, you will pay either with cash or with poverty or by accepting Bernanke printed funny money. Thanks for keeping the party going a little longer so I won’t have to live through a life long hangover like you will. I would tell you the easy way out of this mess, but there is none.
MAJ Mike
September 15th, 2012
QE3 is proof positive that THE WON’s economic program has bee a failure.
Nutjob
September 15th, 2012
Why would Bernanke resign?
He’s making to much money closing and seizing of assets from the little banks.
Then he resells their debt and doubles his money, that and hedges on other failures that he’s in charge of…a win/win for the crooked Fed.
Bob M.
September 15th, 2012
If I were Bernanke, I’d take some duffle bags full of those Bernanke bucks I’ve just printed, and find a country that doesn’t have an extradition treaty with America, and relocate there. PRONTO!