Tags: Marc Faber | Jim Rogers Both Candidates Are ‘Clueless and Dangerous’

Marc Faber, Jim Rogers: Both Candidates Are ‘Clueless and Dangerous’

Thursday, 04 Oct 2012 04:44 PM

Both President Barack Obama and his GOP challenger Mitt Romney are clueless and dangerous, as both candidates will adhere to the same policies of sidestepping paying down debts and letting the economy correct, heal and get going again, said prominent investors Marc Faber and Jim Rogers.

Under President Obama's first term, the government has rolled out fiscal stimulus measures and overhauled healthcare and financial oversight regulations.

The Federal Reserve over the last few years has flooded the U.S. economy with liquidity by buying bonds held by banks, a monetary policy tool known as quantitative easing that aims to push interest low and send stocks higher.

Romney has said he disagrees with Fed policies, but according to Faber and Rogers, neither candidate has the stomach to streamline the economy and let it rejuvenate on its own.

"It doesn't matter if it's Romney or Obama, they are both the same — they don't have a clue what's going on. They caused the problems. These are the guys who got us into this situation, and you think they are going to get us out?" Rogers told CNBC's "Futures Now" online news venue.

"And [Fed Chairman Ben] Bernanke is certainly not going to get us out, for God's sakes. But he is going to print money, he is printing money and the risks is if they print a lot of money, why can't the Dow go to 20,000 or 30,000?"

Gold tends to perform well as an inflationary hedge when the Fed moves to jolt the economy with monetary stimulus, as do stocks as the dollar weakens and interest rates fall.

Soaring stock indices, some say, don't reflect mounting inflationary pressures and aren't supported by corporate fundamentals but rather cheap money looking for yield.

"If they continue to print that money and the Dow does go to 30,000, I assure you gold and a lot of other things are going to skyrocket as well."

Marc Faber, author of the "Gloom, Doom and Boom" report, agreed.

"I agree with Jim on the fact that most presidents are clueless. The only one that had any clue at the conventions was Clint Eastwood. He's the only one who had an idea about the real world," Faber told "Futures Now" alongside Rogers.

"The other ones were just clueless. On top of that they are not only clueless, but they are also completely artificial. No genuine act behind them."

Faber added he owns stocks due to the support quantitative easing provides but is trimming his load of equities.

"The whole world is believing that money printing will lift equities and so a large portion of the equities market rally is already discounted in this universal belief," Faber said, adding bad news could bring about an end to the sugar high that monetary stimulus brings to equities markets.

"We can have bad news and in particular, the economy globally is slowing down very particularly in Asia, which has been strong for the last two years and so corporate earnings may actually disappoint for the next, say, one or two years."

Rogers, meanwhile, said he was sticking with currencies and commodities.

"I don't see much value in stocks or anywhere. I mainly own currencies and I own some commodities. I am short stocks in various parts of the world."

Other experts point out that lasting recovery won't come with monetary policy measures but more lasting fiscal reforms.

"The stimulus that is needed – on both sides of the Atlantic – is a fiscal stimulus. Monetary policy has proven ineffective, and more of it is unlikely to return the economy to sustainable growth," Nobel economist Joseph Stiglitz wrote in a Project Syndicate column.

Deep-rooted tax and spending reforms are needed in the U.S. as well as in Europe before the world is to see blue skies again, Stiglitz wrote.

"For both Europe and America, the danger now is that politicians and markets believe that monetary policy can revive the economy. Unfortunately, its main impact at this point is to distract attention from measures that would truly stimulate growth, including an expansionary fiscal policy and financial-sector reforms that boost lending."

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Both President Barack Obama and his GOP challenger Mitt Romney are clueless and dangerous, as both candidates will adhere to the same policies of sidestepping paying down debts and letting the economy correct, heal and get going again, said prominent investors Marc Faber and Jim Rogers.
Marc Faber,Jim Rogers Both Candidates Are ‘Clueless and Dangerous’
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Thursday, 04 Oct 2012 04:44 PM
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