How did CNBC manage to let this guy on their show? Usually the blow hards over there like to prop up the GOP economy no matter how ugly the truth may be. Easy money only made things worse and delayed the tough times.
But the economist fears that the Fed's "throwing money at the system" will not help improve the fundamentals of the real economy. Instead, he believes, excessive monetary growth has merely driven excessive consumption in the U.S., with consumers living beyond their means and speculators "piling one bubble, housing, on top of the Nasdaq [tech] bubble" that popped in 2001-2001.
"The easy money, the easy credit -- you can't solve your problems with what caused them in the first place," Faber declares.
He posits that a fully-realized recession at the turn of the millenium might have been for the best, restabilizing the world credit markets. "The longer you postpone the hour of truth, the worse it will be," he augurs. "We will reach 'zero hour,' when more debt doesn't help."
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