Marc Faber Predicts more Money Printing by October 2010

   Marc Faber was interviewed on Bloomberg yesterday and predicted that due to weakness in the economy, the Federal Reserve would begin a new round of Quantitative Easing (money printing) by October 2010 to prevent deflation. His outlook for the economy is not positive.

Here is a link to the video: Click Here

   If Faber is correct and the Fed prints $2-3 trillion more this wold be a boon to gold and other hard assets. However this money printing will eventually lead to hyperinflation despite what the deflationists say. I think history is pretty clear that the Federal Reserve will never allow deflation even though it is a natural part of the credit cycle.  

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