Silver as an investment

Marc Faber explains how money printing divides societies and tests investors

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

Arabian Money
Posted on 06 March 2012

The central banks of the world can counter a depression by printing money and know the quantity of money printed but they cannot predict where that money will go. Inflation increases the gap between the rich and poor, and makes life very tough for investors.

This is the broad thesis that legendary investor Dr Marc Faber presented at the Hedge Funds World conference in Dubai this morning. He went so far as to blame social and political phenomena like the Arab Spring on the divisive effect of inflation produced by money printing.

Money printing side-effects

Higher food and energy prices are directly linked to the central bank policies to counter the global financial crisis, he said. This is arguably the root cause of the Arab Spring protests, revolutions and civil wars and so the divisive impact is clear.

Poorer sections of society spend a far greater portion of their wealth on food and energy than the rich and so feel a disproportionate impact when these prices go up. They don’t like it and rebel against the established order.

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Thanks to BrotherJohnF

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