Andy Xie: “Whole world is drinking poison to quench the thirst”
Andy Xie believes ultra-low interest rates in the U.S. and elsewhere are fuelling an asset price bubble which will pop dramatically in 2012. In his view, the policies of the world’s central banks are reckless and will lead to worse down the road.
Bloomberg quotes him as follows:
“There is a Chinese saying that one could quench the thirst by drinking poison,” said Xie, who predicted in September 2006 that the U.S. economy would fall into a recession in 2008. “Bernanke seems to be prescribing exactly this to the U.S. economy.”
In previous comments, Xie called the central bankers arsonists as their low interest rates this past decade fuelled the previous asset bubble which led to the financial crisis and economic collapse. In his view, the present policy of central banks is yet more of the same and will lead to a huge bout of inflation and collapse.
“The whole world is drinking poison to quench the thirst,” Xie said. “It may feel like relief now. The sickness will strike in 2012.”
Albert Einstein is known to have said that insanity is doing the same thing over and over again and expecting different results. His thinking applies here.
Much more below.