"Marc Faber is one of the big picture guys who we really like and follow. Faber spoke to The Daily Reckoning recently and as usual, had some good investment wisdom to offer. Faber opined that it is not just about inflation versus deflation now. He observed that we live in a globalised world and in such an economic system, there are chances that both the 'flations' co-exist. Thus, while the developed world remains engulfed in a potentially deflationary environment, there is a lot of inflation happening in emerging economies.
Faber also argued that taxation is nothing but a form of inflation. This is because it is not easy to say 'I m going to tax you and you will pay the tax'. This does not work as per Faber. There are strong chances that these taxes are rolled over onto other people. They can be rolled over to the consumer and so on. Thus, this is the real problem with respect to fiscal policies, opines Faber. One just doesn't know who will end up holding the bag whenever a tax is imposed. Indeed, we couldn't have agreed more."
in Equity Master
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
