By ValueWalk
Marc Faber, editor and publisher of “The Gloom, Boom & Doom Report”, spoke with Bloomberg TV’s Trish Regan today. He commented on Bill Gross’ remarks about deflation and explained why he thinks Japan is engaged in a Ponzi Scheme. He also spoke on oil prices and the midterm elections.
Faber said that Japan is “engaged in a Ponzi scheme in the sense that all the government bonds that the Treasury issues are being bought by the Bank of Japan.”
On oil prices, Faber said: “The oil price decline is not necessarily very good for the United States. It helps the consumer to some extent, but a lot of capital spending has gone into oil and natural gas, and some of these companies are already today cash flow negative. So if oil prices went lower, it may actually have an adverse impact on the US economy.”When asked about Janet Yellen’s first meeting with President Obama since becoming head of the Federal Reserve, Faber said: “She should immediately apologize that it took her so long to meet the president because Alan Greenspan was running to the White House repeatedly and very more often than any other Fed chairman.”
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