Marc Faber criticizes the Fed for having caused all bubbles in the US economy. First after the stock market bubble of the 1990's, the Fed massively increased the money supply in 2001, and kept interest rates at 1% almost three years after the US economy recovered. These irresponsible actions created the housing and credit bubble in the early part of the decade.

Not only that, but he mentions that employment in the US in June was about the same number of people employed in the year 2000! In other words, all the employment gains since 2000 have been lost in this depression. If unemployment were properly measured, the unemployment rate would be 16%. See the chart below:


Faber also discusses that not only was the 2002 recovery a jobless recovery, but that quality of jobs has declined. The US has changed high-paying, high-value adding manufacturing jobs for service and retail jobs.

The US dollar has lost 95% of its value since the Fed was founded in 1913 (in other words, something that cost 5 cents in 1913, today costs more than a $1) Faber says that the other 95% of purchasing power loss will take only 10 years.