Marc Faber: How investors can beat hyper-inflation

September 27th, 2007 by GoldSilver | Posted in Economic News |

Faber …sees US GDP growth for the past several years as being based on consumer debt rather than savings and manufacturing prowess (as in Asia). He estimates total US credit market debt to be around 330% of GDP. The US current account deficit, which has swollen to 7% of GDP in 2007, compared to 2% in 1998, is also a reflection of America’s preference for consumption over production. That deficit has had the effect of pumping $800 billion of liquidity into the world economy, fueling asset prices worldwide, and increasing the risk of a synchronized economic crash.

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