Global economy will continue to grow: Faber

Bernanke killing USD as unit of account: Marc Faber

Marc Faber, Author of The Gloom, Boom & Doom said, �Now obviously we have a problem; so what does the Fed do? They don�t look at what caused the problem but they flood the system with liquidity to some extent - it will help the asset markets. It will cushion in dollar in terms of the asset markets. Mr Bush brought about the demise of the geo-political prestige and reliability. Bernanke is bringing about the demise of the US dollar as a store of value and as a unit of account.�

Faber said, �The economic growth has very little to do with the performance of the financial assets and of other asset markets. We are going to have a growing economy in China; yet the financial markets in India and China are on the downside,; I think the global economy will grow and the financial assets are cheap and one should buy them. But the global economy can grow and the financial markets can go down.�

Expressing his views on the commodities situation, Faber said, �Paper money is even worst than gold. But the gold price can correct on the downside. I am telling people that everything you touch today, you have to be prepared that you have a movement of 20% against your expectations could be 40%. The oil prices - say at USD 105/bbl, could drop to USD 80/bbl before going to USD 300/ bbl. Anything can happen we have very high volatility and in high volatile periods most of the investors will be caught somewhere

"I think since Bernanke became the Fed Chairman, gold prices have doubled and he is the gold buyer�s best friend. That does not mean that the gold prices cannot go down. I would like to stress that the Fed is pumping money into the system and other central banks will do the same. But the private banks and the tightening liquidity will affect all the asset markets," Faber said