The Federal Reserve's decision to refrain from tapering its quantitative easing (QE) shows it is pursuing "QE unlimited," says Marc Faber, publisher of the Gloom Boom & Doom Report.
Fed officials are academics who don't comprehend the lives of ordinary people,
Faber told Bloomberg TV. "They don't understand that if you print money, it benefits a handful of people, not even 3 percent of the population."
The Fed's announcement may have boosted stock prices Wednesday, but only 11 percent of Americans own stocks directly, Faber says. And commodity prices, such as crude oil, rose too.
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"Crude oil, gasoline are things people need. Thank you very much. The fed boosts these items that people need to go to work, to heat their homes and so forth," he said.
The Fed's QE is designed to keep long-term interest rates low, Faber notes. But the 10-year Treasury yield has about doubled to 2.75 percent late Thursday from its July 2012 record low of 1.38 percent.
"Great success," Faber quipped.
"The endgame is a total collapse, but from a higher diving board. The Fed will continue to print."
The stock market's gain in reaction to a Fed decision dictated by weak economic data shows "the break between Wall Street and Main Street is enormous right now,"
Joel Naroff, president of Naroff Economic Advisors, told Newsmax TV.
"What drives Wall Street is not necessarily what's going on in Main Street, and that's a problem that the Fed has to deal with."
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