Go here to see the video interview. For some reason when I embed it it fucks up my layout.“In every society, when you have large fiscal deficits combined with easy monetary policies … the likelihood that you will have high inflation is very, very high,” Faber said. “And it happens very quickly.”
These numbers rise so speedily because the government “massively” understates the country’s rate of inflation, Faber said. To get a true reading, he said, people need to ditch core inflation numbers and include CPI in their analysis.
“It’s a lie what they publish,” said Faber. “If you underweigh education costs, and if you underweigh health care costs, then you come to a totally different result.”
note: Marc Faber points out that prior to the establishment of the Federal Reserve the United States experienced stable prices and a deflationary boom. When I get round to it, I will blog about why I think the federal reserve SHOULD be abolished.
