Marc Faber, publisher of The Gloom, Boom & Doom Report, told CNBC on Monday that investors are asking the wrong question about when the Federal Reserve will taper its massive bond-buying program. They should be asking when the central bank will be increasing it, he argued.
"The question is not tapering. The question is at what point will they increase the asset purchases to say $150 [billion] , $200 [billion], a trillion dollars a month," Faber said in a " Squawk Box " interview.
The Fed-which is currently buying $85 billion worth of bonds every month-will hold its October meeting next week to deliberate the future of its asset purchases known as quantitative easing.
Faber has been predicting so-called "QE infinity" because "every government program that is introduced under urgency and as a temporary measure is always permanent." He also said, "The Fed has boxed itself into a position where there is no exit strategy."
Editor’s notes: And who benefits from Q.E. ?? The stock market and investors -- and no one else unless you believe in the nonsense that “rising tides lift all boats.” When Faber argues that the Fed has “boxed itself into a” corner, he means the Fed cannot quit with its QE program. The second that is even hinted at, the stock market will take a dive -- and if the economy, specifically housing, is not in full rebound mode, and it is not, that “dive” will be the end-all to end all. The Fed has begun something it cannot amendment -- perhaps even in good times.
