Faber: Inflation in Emerging Markets Makes US, Europe Better Bets Read more: Faber: Inflation in Emerging Markets Makes US, Europe Better Bets

Inflation is on the rise in emerging markets, and that makes the United States and Europe better investment opportunities in 2011, says Marc Faber, editor of the Gloom, Boom and Doom Report.

Rising food and energy prices will cause trouble in countries like China and India, he tells CNBC.

“We have money printing around the world, and that has led to very high food inflation and inflation in energy prices," Faber points out. "In low-income countries like China, India, Vietnam and so forth, energy and food account for a much larger portion of personal disposable income than in the United States."

The upshot: "These countries are suffering from basic high inflation, and that reduces the purchasing power of people,” he says. “So I think the monetary authorities in emerging countries are going to have to tighten or let inflation accelerate, both of which are not particularly good for equities." (more)