& Doom Report publisher Marc
Faber and economic analyst Mike
“Mish” Shedlock join Yahoo’s Tech Ticker on March
12, 2010 to discuss the global economy, where we’re headed
and the possibility of the “end of civilization.”
(Videos follow excerpts and commentary)
Marc Faber and Mish hold differing views on what we can expect in terms of dollar purchasing power going forward:
The issue here is quite irrelevant, whether we have deflation first or inflation first. Eventually we’ll have much higher inflation rates, because if deflation comes first they’re going to have even more stimulus packages and even more printing. And as you know, many leading economists, they call for additional stimulus which I think is ludicrous, it’s crazy to even suggest additional stimulus. But, that is what the Keynesians believe is the right thing to do and that will bankrupt Western governments, not just in the US, but everywhere.
I think he’s wrong. One thing he’s right about is that the threats from Congress here, the stimulus packages. Yet, when I look at this I see what state governors are doing, I see what mayors of some cities are doing, and I am also seeing out of Congress a reluctance to pass more stimulus bills. Look at the last unemployment extension – it was held up for a week by Bunning – where they didn’t even want to extend unemployment benefits. There’s very little room here and very little sentiment here for Congress to go out and do these same massive kinds of programs. Also, I think that these guys think that they fixed the problem. That they think we’re on this road to this miraculous recovery and jobs are coming just down the pike.