20% inflation coming, according to Marc Faber.
Since the creation of the Federal Reserve Bank in 1913, the dollar has lost 95 percent of its purchasing power, Faber said.
“It took 100 years to lose 95 percent (but) I think the next 94-percent loss in purchasing power will happen very quickly,” he said.
In such a volatile market, Faber thinks the safest place to invest is in equities or assets, even real estate.
"I'm not very bullish about real estate prices in the U.S., but I'd rather be in real estate than in 30-year U.S. bonds," he said.
Yes, it seems as if everyone is predicting runaway inflation in the near future. I suppose I'm getting sucked in to that mania as well because I can't see how near 0% interest rates and trillions in government deficit spending won't result in cash raining down from the heavens.
But we have seen an incredible destruction of wealth via the decline in the stock market and in real estate. People don't have money, unemployment is rising, and people have cut back on spending.
I'm on the side that the economy has turned around and the Fed will be too late in adjusting rates, as they usually are. The Fed is reactive, not proactive. At their current rate, I think the bias has to be for an outlook of inflation.