In a recent interview, renowned investor, Marc Faber, discussed various aspects of the global economic crisis. His perspective is extremely relevant to the national tea party movement. Here are just a few of the highlights:

Q: What do you think are the long-term effects of the stimulus and bailout proposals on all the Western countries, including the U.S.?

A: …in terms of fiscal spending, bailouts usually don’t work…when the government sits in and tries to offset sagging private demand with government demand, it usually does not work. Many people think the global recovery will begin in late 2009. I seriously doubt that. I think it will be at least two years from now, worst case maybe 10. And when we do start recovery, interest rates will rise and inflationary pressures will be enormous…if you try to postpone a recession the way the US Government has tried to do, then one day you will have a much bigger problem.

Q: Are we looking at the same kinds of inflation we saw in the late ’70s or not quite as bad as that?

A: My view is that, eventually, we will see a much higher inflation rate than in the ’70s.

Q: Are there any other bubbles on the horizon?

A: …What Mr. Greenspan and Mr. Bernanke have achieved is quite historically unique. They have managed to create a bubble in everything, everywhere in the world…from here on, the government bond market will fail…

Q: If you were Chairman of the Fed or Secretary of the Treasury, what would you recommend now to Congress?

A: I think the best move would be to resign, but that aside…the problem is that no officials in the U.S. are telling the truth…that you have to want for a few years, tighten your belts, endure some pain in order to safeguard the country’s economic health…Ill-conceived policies by the last few administrations, Republicans as well as Democrats, were designed to stimulate consumption. As a result of these policies, we will now have a period of subpar growth for some time.

If I had been Chairman of the Fed, I would have kept interest rates at a much higher level after 2001. Don’t forget, low interest rates actually hurt savers…

If I were at the Treasury, I would let the financial institutions that overleveraged themselves and gambled with other people’s money, like AIG and Fannie Mae and Freddie Mac, go bankrupt. You can still protect the depositors and policy holders…but let the system, through the market mechanism, deal with the problem.

Read the rest of Faber’s specific investment insights in the full interview here.