Dr. Doom explains why central bank intervention is leading to inequality and how to invest in this risky environment
Dr. Faber: They could essentially monetize everything, and then you have state ownership. And through the central banking system, you introduce socialism and communism which is state ownership of production and consumption. You would have that, yes, that they can do.
The BoJ owns more than 50 percent of Japanese ETFs [exchange traded funds], which own large parts of the underlying companies. So indirectly they may own 20 percent of the Japanese companies, and they can go up to a higher level.
I don’t think the central bankers are intelligent and smart enough to understand the consequences of their monetary policies at present. They focus on inflation but in my view they shouldn’t do anything. They don’t focus enough on what it does to the average standard of living of the people, to the average household income.
….related from Martin Armstrong:
“Our three targets have been given countless times – 18500, 23000, and the 30000–40000. Well we reached the first level. We will breakout to the next. Then we will see about the third.