Forbes CEO Steve Forbes foresees a new link between the U.S. dollar and gold.
“I’ll make a prediction that in the next five years, you’re going to see something that would astound most economists today: The dollar’s going to have a new link to gold,” Forbes tells CNBC.
“A weak dollar means a weak recovery,” Forbes says. “You cannot have long-term growth when your currency’s continually under assault,” he said.
“Unfortunately, the Federal Reserve is absolutely ignorant of that.”
Forbes compares the Federal Reserve’s quantitative easing policy to doctors “in days of old.”
“When the patient was sick, they’d bleed the patient,” he says. “Ben Bernanke’s one of those bleeding doctors.”
Forbes says he expects the Republicans to take control of both houses of Congress and most of the governorships that are up for grabs in the midterm elections.
“People are very upset by the binge spending … by massive new regulations in healthcare and elsewhere and rising taxes,” he says.
Rapidly rising gold prices have prompted some advisers to warn investors against investing in the precious metal.
“While gold may still have further to go, investors jumping in after such strong performance has already been achieved are taking a big risk,” British financial adviser Patrick Connolly told the UK Telegraph.
“Historically, gold has not always been the safe haven it is portrayed to be today and there is every possibility that the price will fall, especially if we start to see real signs of a global economic recovery.”
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