Tags: Faber | Bernanke | Policy | jobs | Asia

Faber: Bernanke's Policy Is Driving Jobs to Asia

Wednesday, 08 Sep 2010 02:03 PM

Doom, Gloom and Boom publisher Marc Faber says Federal Reserve Chairman Ben Bernanke's monetary easing policies are creating many more jobs outside the U.S. than in it.

"It is a fallacy to believe that easy money and the purchase of Treasuries will boost economic activity in the U.S.," Faber told Bloomberg. "Over the last two years, we eased massively in the U.S. and where did the growth take place? In Asia."

"So when we talk about job creation, do you think that Intel or a small businessman will hire more people in the U.S. because of further monetary printing?"

"No! They will build factories in Asia and hire people in Asia and all the monetary policies in the U.S. create misallocation of capital and unintended consequences," Faber says.

Asked if a bubble in Treasuries was one of those unintended consequences, Faber pointed out that Treasury bonds, especially the 10-year and 30-year notes, have been rallying since 1981, and yields are close to all-time lows.

"In my view, over the next 10 years, Treasuries will be a disaster for investors," Faber says, adding that if Bernanke continues to print money “eventually the bond market will see through the money printing – that will eventually lead to inflation somewhere in the system."

Bloomberg reports that while a majority of economists surveyed by the National Association for Business Economics last month said deflation is a bigger threat than inflation, the bond market shows investors expect a prolonged period of stable prices.

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Doom, Gloom and Boom publisher Marc Faber says Federal Reserve Chairman Ben Bernanke's monetary easing policies are creating many more jobs outside the U.S. than in it. It is a fallacy to believe that easy money and the purchase of Treasuries will boost economic activity...
Faber,Bernanke,Policy,jobs,Asia
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2010-03-08
 

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