Faber said: "They will print and print and print until the final crisis wipes out the entire system."...
Faber said: "They are very bad forecasters of economic events".
That was the case with Mr Greenspan but "Mr Bernanke is in the same boat. He has no clues what the economy is doing," Faber added.
Explaining his argument, Faber went on:"They misread in 2007 the severity of the forthcoming economic crisis and then they misread in the last few months the strength of the economy, which shows no signs of strenghtening but signs of weakening everywhere in the world."...
"Everyone in the world has somes concerns about the ultimate value of the Dollar and of the value of US bonds." If the fiscal deficits stay at these levels and in my opinion they are likely to increase, over time obviously you will have a credit problem in the US, he added.
While this will not happen in the next three years, the implications are that diversification out of Us Dollar Treasurys is a good thing, he noted. This is why he is "not all that negative" on stocks.
And investors who share his bearish view would be better off holding stocks instead of bonds in their portfolios, Faber said.
Equities, rather than bonds, "should be part of your porfolio if you are bearish about the long term," he said.