Friday, April 08, 2011

Marc Faber: Economic Policies Keeping Poor Afloat and Keeping Rich Rich

Talented, wealthy and brilliant financial analyst Marc Faber on air with CNBC goes so far as to say we have two classes developing - one poor and unable to provide for themselves and the other, wealthy, landed, established and desperate to see the price of their assets remain high or go higher. Marc suggests the current economic policy of printing money to keep asset prices high for the rich and making MASSIVE transfer payments in the form of various programs that amount to grants to the poor to keep them from starving is distorting the economy, markets and society.

Marc is of course, spot on. We have a president trying to save the poor (instead of instituting policies to help them help themselves), and a Federal Reserve Board chairman printing money OUT OF THIN AIR which is EXTREMELY INFLATIONARY, causing the price of everything from toothpaste to food to gasoline to skyrocket in price (filled your tank up lately, dear reader?).

The host is aghast. That's because she's either stupid, blind, or trying to play nice for the cameras. Marc further explains the seed causing the poor to not only remain poor but expand in number: 50% of all kids are born out of wedlock and many of them to poor women. On top of that the divorce rate is over 50%. Having lots of children and then breaking families apart is financially devastating and its become so pervasive and socially acceptable, even financial gurus such as Marc Faber are taking notice.

The point Marc makes is that this trend is not simply notable. Its a goddamn nightmare - economically, socially, psychologically, realistically.

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