The government has been intervening more and more into free markets during the past few decades and disrupting the economy in the process, with the Federal Reserve being the biggest culprit, says investment guru Marc Faber.
The government bailed out the savings and loan sector, the Long Term Capital Management hedge fund and the Mexican government prior to the current crisis, skewing the financial sector with each intervention, Faber says.
The Federal Reserve, Faber tells Chrismartenson.com, is the star player in such actions.
Today, the Federal Reserve is at it again, printing money and sending the country along a path towards sky-high inflation rates despite its calls that the opposite has been occurring thanks to its outdated methodology.
"If there's one institution in the U.S. that consistently and repeatedly messes up everything, the Federal Reserve is that institution," Faber says.
Deflation marks falling consumer prices and wages and inflicts serious damage to an economy.
Federal Reserve officials say monetary policies are steering the country away from such a downward spiral.
"Interest rates are higher, but I think that's mostly because the news is better. So I think the policy has helped," says Federal Reserve Chairman Ben Bernanke, according to Reuters.
"We're seeing some improvement in the labor market. I think deflation risk has receded considerably and so we're moving in the right direction."
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