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Strategies & Market Trends : THE ZERO HOUR -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (65)	10/27/2009 6:54:05 PM
From: kimberley	Read Replies (1) \| Respond to of 130

you've got some smart friends -g- The dollar will become worthless when people eventually realize the fiscal situation in the U.S. is a “disaster,” said Marc Faber, publisher of the Gloom, Boom & Doom report. “It will go to a value of zero eventually, but not right now,” Faber said today in an interview on Bloomberg Television. “Looking at Mr. Obama’s administration, it should already be there. I think it will take about 10 years until people realize that the fiscal situation of the U.S. is a complete disaster.” The U.S. budget deficit under President Barack Obama’s administration reached a record $1.4 trillion in the fiscal year that ended Sept. 30. Debt amounted to 9.9 percent of the nation’s economy, triple the size of the 2008 shortfall. While the dollar may rebound in the short term because it’s been oversold, a rally won’t last because the U.S. will be forced to print more money to pay its debt, Faber said. The greenback weakened today to $1.5063 per euro, the lowest level since August 2008. “In my opinion, about 50 percent of tax revenues will be used just to cover the interest payments on the government debt,” Faber said. “That is unsustainable. Then you’ll really be forced to print money.” The best investments right now are foreign currencies, commodities and equities, Faber said. Stocks will continue to benefit from the actions of Federal Reserve Chairman Ben S. Bernanke, he said. “As soon as the S&P drops to 900 or 800, he will print money again,” Faber said, referring to the Standard & Poor’s 500 Index, which was at 1,084 today. “He’s a money printer. He’s nothing else.” The U.S. government and the Fed have spent, lent or guaranteed $11.6 trillion to spur the world’s biggest economy. bloomberg.com