Marc Faber says central banks doomed to fail, as Fed, BOJ decisions come under microscope

Leslie Shaffer's article discusses Marc Faber's thoughts on the central bank trying to spur economic growth. He believes that they are bound to fail. He explained, "from the 1970s to the mid-1980s, people believed inflation was "forever," but now the same central banks that were fighting inflation were now fighting deflation". He claims that this fight was a mistake and that price rises were surpassing income gains across Asia.

He points out that system is so over-leveraged that sudden inflationary pressures will arise, and that central banks should then act but they would not be able to. He also discussed how   the low and negative interest rates globally were hurting pension funds, and how pension funds are underfunded. He also expressed that " the central bank is going to continue to print money and the Fed's balance sheet and the other central banks' balance sheets will continue to grow until the whole system collapses", and discussed that people with gold assets will be better off than people with paper assets.

However, recent central bank decisions tend to disagree with Faber as " The Federal Reserve ended its quantitative easing program in 2014", and they have been aiming to raise interest rates. Also, the outcome from the Bank of Japan's policy meeting also indicated that central bank was moving away from its quantitative easing program.

http://www.cnbc.com/2016/09/21/marc-faber-says-central-banks-doomed-to-fail-as-fed-boj-decisions-come-under-microscope.html