Faber's Inflation GLOOM + AG BOOM ?

According to a CNBC television interview today with "The Gloom, Boom & Doom Report" editor + respected market commentator Marc Faber:

"In the United States the typical household spends about 20% of its income on food. In emerging economies, where people have low incomes, frequently 50% of their income is spent on food. So when food prices go up it hurts them (the emerging economies like India, China, etc.) very badly...with exception of course to the rural population, the farmers who benefit from rising food prices."

Net of the Net, I guess I just never really realized in numerical terms the extent of the difference between consumer FOOD PRICE INFLATION in the U.S. vs. the emerging economies.

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Other Faber interview notes :

*Faber believes the U.S. Federal Reserve should stop cutting interest rates...and instead should consider raising rates in order to strengthen the dollar and counter the current 'real inflation rate'

*Faber believes the 'real inflation rate' is somewhere in between 5-10%

*Faber believes the typical U.S. household in America does not own stock...he thinks the ownership of stocks is concentrated among only 10% of the U.S. population

*Faber believes the AGRICULTURE + FORESTRY sectors of the world economy are especially attractive today... "The whole agriculture sector in the world is attractive because if you look at agricultural prices in real terms their still extremely low...and I think if you look at forestry then obviously the price of lumber has totally collapsed and its at a multi-year low...so at this point I think it might be a good idea for people, rather than to buy financial stocks, to buy forestry assets and agricultural assets around the world"


Check out the below link re Marc Faber if you want to read up more about him:
http://en.wikipedia.org/wiki/Marc_faber


Data Courtesy: CNBC (tv interview).