marc faber, publisher of the gloom, boom and doom report. marc, good to see you. we just spoke to jim o'neill moments ago, and he was essentially saying that a real chinese credit crunch doesn't exist and that, instead, what you're looking at is a situation where the chinese, if anything, are very, very good savers and that the credit crunch is not genuine. do you agree with this? >> i completely disagree with it. i think china, if you look at the expansion of credit as a percent of the economy, had a colossal, not a small, a colossal credit bubble, and there are lots of poor credits in the system because all kinds of companies, instead of manufacturing and making money out of manufacturing, they resorted to financial transactions. in other words, they borrow at low rates from the state banks, and then they lend it out to very questionable borrowers. and as a result of that, i think the chinese economy will disappoint very badly and i have maintained for a long time the chinese economy does not grow at 7.8% or 7.9% at the present time but more likely just at 4%. >> but at the same time, i also know that you think that equities, that bonds, gold, that they're oversold right now. i mean, shouldn't we be selling precisely if we think that the chinese economy is going to get weaker? >> well, near term, treasury bonds, gold, equity markets are oversold, and they can rebound for say the next ten days or even one month. new highs in emerging markets and in high-yield bonds out of the question. and if it happened in the s&p, which i don't believe, it will be driven by very few stocks. longer term, the market is far from oversold. it still has considerable downside risk everywhere. >> why shouldn't i believe in bernanke? i was reading some of your musings, and you indicate that if you believe in bernanke, then you believe in father christmas. i believe in father christmas, too, but why shouldn't i believe in bernanke? >> well, first of all, if you look at why we have such a mess in the world, then we have to see that it was continuous intervention with fiscal, and particularly, monetary measures, especially ahead of y2k already bailing out ltcm, and then after the crash in the nasdaq, keeping interest rates artificially low and creating a gigantic credit bubble in the u.s., whereby the credit flows into the housing market. and mr. bernanke couldn't see a bubble occurring and he made statements that it was contained and that home prices would level off but not go down. the dear uncle ben has no credibility whatsoever among say market observers. >> marc, i was also looking closely at what mr. fisher was saying yesterday, the fed's fisher. and essentially, he was attacking people he called the feral hogs or the feral hog forces of the markets, those who are trying to prevent the fed from starting its tapering program. and i know, again, that you're saying that you think we could be going to qe-99, quantitative easing 99. >> yes, correct. >> we're at qe-2, qe-3. we are looking at at tapering program, though, slowly but surely really coming into force now. why assume that we have to continue? >> well, i think that, actually, the economy will weaken and not strengthen globally, because if you look at where did the growth come in the last ten years or since the recovery occurred in june 2009, we are four years into an economic recovery already, it came almost 80% from emerging economies. at the present time, the emerging economies, in my view, are not growing. they're not in a deep recession but just stopped growing, and corporate profits