U.S. Inflation Expectations Increase

Investors who bet on inflation usually can buy gold or they can put money into chips but JP Morgan says gold is the better bet. (The Bloomberg Edge) , Marc Faber have been warning about inflation / hyperinflation in the US market to hit any time soon if nothing is done to fix the fundamentals of the US economy....

The central bankers are nothing else than money printers Marc Faber

The US is the least cyclical economy agrees Marc Faber with Nouriel Roubini

"Basically what we have this bull market in assets between 2002 and the end of 2007 early 2008 and a weak dollar during that time , 2008 was the opposite , a strong dollar and all assets markets went down except for bonds and now in 2009 we bottomed out on the S&P at 666 in march and since then have rallied strongly and in emerging markets even more but the dollar was weak , and I expect now may be for the next couple of months a period of recovering dollar and a correction time in asset markets " says Marc Faber "The Us is the least cyclical economy as Professor Roubini pointed out emerging economies are essentially more cyclical than the US economy , they're like a warrant on US economy , and I think in a scenario where growth will be disappointing , I think emerging markets are kind of vulnerable they also become the favorite investment destination by momentum players , and I think we had huge increase in stock prices a lot of markets have doubled in price between march and just now a couple of days ago and so a correction is possible , but having said that I would also argue that the worse the global economy is the more stocks could go up because we have all these central bankers who are nothing else than money printers " "they created first the NASDAQ bubble and then the housing bubble and now they want to create another bubble to bail them out and that's of course not a recipe for a healthy sustainable growth"
"Usually an economic and financial crisis leads to some fundamental changes. That is the purpose of a recession, of a depression, to clean the system," said Faber
"Let the derivatives players go bankrupt and the system is clean," "The total breakdown of the system is ahead of us and it will devastate the global economy."

"My view is that the Fed and the other central bankers will leave interest rates far too low and far too long," Marc Faber added.

Inflation vs Deflation The Debate Continues on the Gloom Boom and Doom Report

Marc Faber has just released his Gloom Boom & Doom Report in which he goes more in depth into the inflation vs deflation debate

"If deflationists are right (and they could be right in the near term, in my opinion), then the US government bonds and the dollar will rally, while stocks, commodities, real estate, and lower-quality corporate bonds will tank. But if I am very confident about making one prediction, it is that, if we have further deflation in the immediate future, there will be not one more, but many more stimulus packages and further massive monetisation. So, government debt-to-GDP could easily double within five years. Now, does anyone seriously think that the dollar and government bond prices wouldn’t at some point begin to reflect concerns about the financial condition of the US under these conditions? " Marc Faber said in his report

click to read more of Marc Faber's Gloom Boom & Doom Report of August 2009

Own Commodities not derivatives at Citigroup Marc Faber

Commodities will continue to be hot

in both a recession or a recovery scenarios commodities are the best place to be , many of the traders are trying to jump on the wagon of a believed soon recovery by speculating heavenly on commodities and energy sector , many investors think the economy has bottomed and are buying equities and commodities in order not to miss the boom this time They're trying to anticipate the exit out of the recession to beat the crowds and set up their long positions , China while trying to get rid of some of its US$2-trillion of currency reserves is buying huge amounts of commodities around the globe as a results the price of some commodities have almost doubled , in particular Copper which had 76 percent rally this year but may soon end on signs that China has stockpiled more than it can use in new homes, cars and appliances for the next decade .
In a presentation at the Prospectors and Developers Conference in Toronto back in March, Dr Doom Marc Faber summed up very elegantly by saying : "You want to own commodities in the ground, not derivatives at Citigroup."

The Next Bubble Can Be In Equities Marc Faber

"There is a bubble that the FED and the government are creating right now and this is a bubble in government debt, in the size of it. They are being very successful at that.

Eventually the US Government will go bankrupt the way California is almost bankrupt, but that will take some time. The next bubble in my opinion can be a bubble again in equities." Marc Faber told Bloomberg TV early this week
Marc Faber was also a speaker at The Agora Financial Investment Symposium in Vancouver and had an hour long interview with CNBC Asia here are some of the quotes from Marc Faber :
The world has not seen the end of the financial crisis and the recent surge in markets was a result of excess liquidity coming from central banks, Marc Faber told CNBC in an interview.

"If you pump money into the system and you create large fiscal deficits, you create volatility," Faber, author of the Gloom, Boom and Doom Report, told CNBC in remarks reported on its website.

"We've seen an intermediate low in March, we'll rally for a year or so or maybe 18 months -- the ultimate crisis will happen much later, and the ultimate crisis would clean the system," he added.

Faber, who did not forecast a precise time for that crisis, told CNBC that firing half the government workers in the world would be one way of dealing with the crisis.

"If you shift government activity to the private sector the economy becomes more dynamic," Faber said. (Reporting by Ajay Kamalakaran in Bangalore)

We haven't seen the last of the crisis despite all talk about green shoots, and the surge in markets was caused by nothing more than the excess liquidity coming from central banks, Marc Faber, author of the Gloom, Boom and Doom Report, told CNBC Friday.

"If you pump money into the system and you create large fiscal deficits, you create volatility," Faber said.
"We've seen an intermediate low in March, we'll rally for a year or so or maybe 18 months… the ultimate crisis will happen much later, and the ultimate crisis would clean the system," he added.

Asked when this would be, he said he could not forecast a precise timing: "it may be 5 years time, 10 years time, but that's not the last crisis."

There are two opposing views, those who believe deflation is the big danger, with asset prices and demand collapsing, and those who think the biggest risk is inflation and a weak dollar, Faber said.
"In general in a crisis such as we have today where there is a deficiency of demand and huge overcapacity under normal conditions you would have deflation… now comes in the government and creates these huge deficits," he added as an explanation for his belonging to the "inflationists" camp.

"Already you have money-printers Mr. Bernanke and Mervyn King… we have never had this experiment in the history of mankind, all governments throwing money at the system," Faber said.

One way of dealing with the crisis would be to fire half the government workers in the world, "because if you shift government activity to the private sector the economy becomes more dynamic," he said.

"It's a transition time that is maybe painful. Why does California have these problems? It's not that there are too many teachers in California but the education department is very bloated," Faber added.

This Crisis has brought more entangling between Wall Street The Treasury and the Federal Reserve Marc Faber

The final crisis may only happen in five years time : Marc Faber

Your portfolio has come up a bit would you be confident the crisis is actually over as some governments pretend that we have seen the end of the tunnel : Marc Faber the editor and publisher of the Gloom, Boom and Doom Report from Vancouver where he was a key speaker at the Agora Financial Investment Symposium this 21 July says " I think the various coordinated fiscal and monetary measures around the world they stabilized the economy , and after having collapsed between September of last year and march of this year we can have a rebound in economic activity , but I mean if you look at Caterpilla actually revenues are contracting and earnings were better because they fired a lot of staff they laid off 35 000 people but if you think about it the laid off people are actually the customers of somebody else , so I think that the economy is going to rebound somewhat and probably will have another dip and the final crisis may only happen in five years time because do not forget this crisis and the crisis essentially should solve the problems and clean the system , this crisis so far has actually aggravated the system and has brought about more entangling between Wall Street The Treasury and the Federal Reserve , and a lot of misguided practices that are detrimental to the health of the economy " You should own foreign shares partly resources stocks and partly shares in Asia and I would own some physical Gold silver and platinum said Marc Faber

Marc Faber Inflation vs Deflation and A Worldwide Bubble in Everything

Marc Faber at the Agora Symposium on HoweStreet in Vancouver BC Canada this July .Dr Doom says "the media under the influence of some Harvard professor and the Federal Reserve they paint deflation as bad and inflation as good and so forth ...when in fact the US begun the whole 19 century with 4 million people they ended the 1900 with 80 million population and we had the entire and we had the entire industrialization growth in real terms between 1800 and 1900 much higher than it was been in the last one hundred years , the wages were flat and the prices went down it is the reverse of what we have today , where an average American wage is having trouble keeping up with the everyday increasing prices not the Goldman Sachs wages of course ... what brought is in this trouble was the bubble itself...the purpose of every crisis is to clean the system The final crisis is still to come where the whole system will collapse and the whole system will be cleaned of corrupt politicians and wrong policy makers....

Marc Faber Money printing, debt growth and deficits don't create prosperity

Speaking to the 10th Annual Agora Financial Investment Symposium in Vancouver this week, Marc Faber said: “You cannot create prosperity through money printing and debt growth.”

Faber preached an idea that became the theme of the event: Government fiscal and monetary intervention, “can postpone, but not prevent crisis.

“I believe next year’s economy will face even larger deficits. Their deficit is attempting to stimulate credit growth. Unless real credit growth returns, they will have to put more and more money into the system to maintain the status quo. All polices target consumption. That is a mistake,” Faber said.

So what’s this mean for the market? “The S&P 500 will not recover to 2007 highs. At the peak, 44% of the S&P was the financial sector. That is gone… not coming back.”

“In the period, 2001–2007, the Fed managed to do something that had never before been done – create a worldwide bubble in just about everything. Stocks, bonds, art, oil, housing – you name it; it went up. The only thing that didn’t go up was the dollar,” Faber said.

Read the full article :

Marc Faber One way of dealing with the crisis would be to fire half the government workers in the world

The world has not seen the end of the financial crisis and the recent surge in markets was a result of excess liquidity coming from central banks, Marc Faber told CNBC in an interview.

"If you pump money into the system and you create large fiscal deficits, you create volatility," Faber, author of the Gloom, Boom and Doom Report, told CNBC in remarks reported on its website.

"We've seen an intermediate low in March, we'll rally for a year or so or maybe 18 months -- the ultimate crisis will happen much later, and the ultimate crisis would clean the system," he added.

Faber, who did not forecast a precise time for that crisis, told CNBC that firing half the government workers in the world would be one way of dealing with the crisis.

"If you shift government activity to the private sector the economy becomes more dynamic," Faber said. (Reporting by Ajay Kamalakaran in Bangalore)

We haven't seen the last of the crisis despite all talk about green shoots, and the surge in markets was caused by nothing more than the excess liquidity coming from central banks, Marc Faber, author of the Gloom, Boom and Doom Report, told CNBC Friday.

"If you pump money into the system and you create large fiscal deficits, you create volatility," Faber said.
"We've seen an intermediate low in March, we'll rally for a year or so or maybe 18 months… the ultimate crisis will happen much later, and the ultimate crisis would clean the system," he added.

Asked when this would be, he said he could not forecast a precise timing: "it may be 5 years time, 10 years time, but that's not the last crisis."

There are two opposing views, those who believe deflation is the big danger, with asset prices and demand collapsing, and those who think the biggest risk is inflation and a weak dollar, Faber said.
"In general in a crisis such as we have today where there is a deficiency of demand and huge overcapacity under normal conditions you would have deflation… now comes in the government and creates these huge deficits," he added as an explanation for his belonging to the "inflationists" camp.

"Already you have money-printers Mr. Bernanke and Mervyn King… we have never had this experiment in the history of mankind, all governments throwing money at the system," Faber said.

One way of dealing with the crisis would be to fire half the government workers in the world, "because if you shift government activity to the private sector the economy becomes more dynamic," he said.

"It's a transition time that is maybe painful. Why does California have these problems? It's not that there are too many teachers in California but the education department is very bloated," Faber added.

The US stock market is strong but the currency is weak Marc Faber

during his last interview with CNBC Dr doom Marc Faber said he sees a huge breakout from the narrow trading range soon. “I think the summer is shaping up nicely. The grave is out, we had a huge rally. We now have a narrow trading range but we will get a big breakout.” He then said that the S&P could reach 970-1020.

“I have turned kind of neutral recently because I think we are at that trading range. The big move, a huge move is coming in the dollar, bonds and in equities. But I am not yet sure clearly on what side it will be.”

“I think a big move is coming. But I would like to see really what will trigger the move.”

“The US stock market is strong but the currency is weak; this signals tightening of global liquidity.”

Marc Faber Choose REITs Over Cash and Bonds

The Governments wants you to lose money on Cash by keeping interest rates artificially too low

Marc Faber says that he owns quite a lot of REITs here in Singapore and Honk Kong , I think the dividend will be cut , but let's say compared to cash or bonds , Cash is made undesirable by the government in the sense that not only they do not pay you almost nothing for your deposits but also the fees in the banks are so high that's essentially the goal of the government to make you lose money on cash and force you to speculate that was the policy after 2001 by keeping interest rates artificially low and we know now what the result was , so the big crisis is yet to come in my opinion says Marc , but say you buy REITs here , even if they cut the dividend by 50% you will still have a higher yield than cash deposit and you have an asset and that asset in my opinion over time will appreciate , because the worse the economy becomes the more governments will print and some people will say well the output cap will prevent inflation from occurring ! you know what the output cap in Zimbabwe is 99% below potential GDP and where do you have the highest inflation ? in Zimbabwe of course ....so basically strong economies have low inflation because usually they have fiscal surpluses and there is no need for the governments to pile in on fiscal deficits and to print money , the weakest economies in the world have always had the highest inflation rates....

Marc Faber, editor & publisher of the Gloom, Boom and Doom Report prefers Singapore and Hong Kong REITs to cash and bonds. He explains why investment rationale to CNBC's Martin Soong.

Marc Faber S&P are too expensive

Dr Doom had an interview with Arabianmoney.net on the margins of the Agora Financial ‘Decade of Reckoning’ conference in Vancouver, Canada which is scheduled to kick off today . Legendary Swiss investment adviser Dr Marc Faber told Arabianmoney.net that the S&P was looking overvalued and was vulnerable to a correction

In a powerful presentation Dr Faber blamed low interest rates at the US Federal reserve for the bubbles recently created in all major asset global classes, except in Zimbabwe. But now the reversal had brought asset price destruction across the world.

Marc Faber is the editor and publisher of The Gloom Boom & Doom Report

Read the whole Interview here :

Marc Faber speaker at The Agora Financial Investment Symposium in Vancouver

Marc Faber is going to be one of the keynote speakers at the coming Agora Financial Investment Symposium which will be held from This July 21st to July 24th in the city of Vancouver British Columbia Canada at the Historic Fairmont Hotel . This year marks the 10th Anniversary of the Agora Financial Investment Symposium.
Besides Dr. Marc Faber there will be The candid and brilliant Dennis Gartman, creator of The Gartman Letter. Famed international best-selling authors Agora Financial Executive Publisher, Addison Wiggin, and Agora Inc. founder and president, Bill Bonner. Plus, one of the Symposium’s most popular speakers, Rick Rule. Marc Faber is the editor and publisher of The Gloom Boom & Doom Report

Marc Faber China had an over investment Bubble

Marc Faber cautious about China's official growth figures

the Chinese markets are up 70% this year , is the Chinese stimulus working ?
Marc Faber answers by saying the Chinese government is one of the few governments in the world that knows the GDP numbers three years in advance , I will take the (official) 7.8% growth rate with a grain of salt " says Dr Doom "I think probably they are some sectors in china that are growing , but other sectors are not growing much or are still in recession like the export sector , I think growth is more likely 2% to 3% than 8% " "In the US we have a stimulus package that is not very healthy because it moves the economy to governments hands and whatever the government does it is not going to be as efficiently as the private sector , In China we also had a bubble it is an over investment bubble with over capacities and so forth and now we do not solve the problem we have created another bubble the bank lending , and the banks they lend the money out , it is impossible that they lend it out all wisely , some will go soar and so forth so I'll be a bit careful about China" concludes Marc Faber editor and publisher of the Gloom Boom and Doom report

Marc Faber 20 Percent Inflation Coming Soon

Marc Faber predicts Hyperinflation soon

Dr Doom editor and publisher of The Gloom, Boom & Doom economic report Marc Faber predicts we'll soon have inflation of 10 to 20 percent.
"The numbers will rise so fast because the government "massively" understates the country's inflation rate" Marc Faber said
Marc Faber puts in doubt the official inflation numbers "It's a lie what they publish," he told CNBC.

"If you underweight education costs, and if you underweigh health care costs, then you come to a totally different result," he added.
"Since the creation of the Federal Reserve Bank in 1913, the dollar has lost 95 percent of its purchasing power" Faber said.

“It took 100 years to lose 95 percent (but) I think the next 94-percent loss in purchasing power will happen very quickly,” he said.

Marc Faber Gold Price will explode

Another Crash May Be in the Works

Marc Faber says " well for me gold is not expensive for the simple reason that if you look at the quantity of money that's been created and the quantity of debt that has been created on the last 10 , 15 , 20 years and you look at the quantity of gold and how much the production of gold is annually , it is so tiny so I believe that essentially Gold one day will be much much higher or turn it around that the value of money will just sink , because if you increase the quantity of money it's purchasing power goes down and with all this discussion about deflation all I can say , i do not know how much old you are but prices in Singapore are much higher than twenty years ago , prices in Switzerland are much higher than 20 years ago prices in America everything is much higher than twenty years ago indeed the purchasing power of paper money has gone down "

The financial crisis we have just been through is really the aftershock from the dotcom bubble, says Giles Keating of Credit Suisse. He tells Marc Faber of the Gloom, Boom and Doom Report & CNBC's Martin Soong that another crash may be in the works.

Marc Faber Dropping Dollars from helicopters is not going to solve the problems

Marc Faber in Singapore US policies have contributed to the Recession

July 18 2009 : The Securities Investors Association of Singapore (SIAS) have organized a investment education fair to educate the man-in-the-street on the basics of investment in the wake of the global financial crisis , during the inaugural event among the top speakers was Dr Doom, Marc Faber, the editor and publisher of The Gloom, Boom & Doom economic report , he entertained the audience as he explained how US policies may have contributed to the current recession, He in particular explained that dropping US Dollar from a helicopter on the United States is the the way to solve the problems that caused the crisis ... The event attracted around 20,000 participant

Goldman Sachs huge profits in the crisis are not normal

Can Asian Stocks Make Even Bigger Gains?

Brace for a Rapid recovery or a new Collapse ? Marc Faber summed up the situation by saying for a while the markets may still run further but I think we had a crisis and nothing had been solved look how the system works the derivatives markets how banks operate the profits at Goldman Sachs , usually a major crisis like we had should clean the system , and nothing had been cleaned it's gotten worse , politically and these linkage between the politicians in America and the Federal reserves and the treasury department and Wall street and so on and so forth and the big crisis is yet to come , it will be huge , TOTAL COLLAPSE...
Giles Keating, global head of research at Credit Suisse likes Asian equities as he believes the big gains they've logged could go quite a lot further. Keating & Marc Faber of the Gloom, Boom and Doom Report share their views, with CNBC's Martin Soong.

Gold & Real Estate in Asia are Marc Faber 's Top Picks

Marc Faber recommends Health Care companies in Asia

Expect many more government stimulus packages and monetary injections, says Marc Faber, editor and publisher of the Gloom, Boom and Doom Report. He also tells CNBC's Martin Soong what sectors investors should look at in Asia.Asian markets made major lows last October November says Marc Faber and he does not think those lows will be broken , Marc Faber explains that you do not want to own a 30 years US government bond for the long run because he believes many more stimulus packages and many more monetary injections and that will lead to some inflation at some point , but what you want to own are assets , the Asian market is not yet saturated this is a huge advantage compared to Europe so a diversified portfolio in let's say Singapore will give you a dividend yield over the next ten years you will certainly make money out of these shares and these companies , in Asian market everybody can do well because the market is not saturated , In Europe if a company does well usually it is at the expense of someone else ..." "Marc Faber says he is a bog believer in Asia except japan that is doomed for decline , an investor with a global portfolio should have more exposure to Asia " Marc Faber likes besides Singapore shares Thai shares because Thailand have a big food industry and is competitive in sectors like tourism , Marc Faber top picks are Gold and Real Estate in Asia , Marc Faber likes Malaysian shares in top companies because they are stable businesses with a high dividend yield in sectors like food processing and healthcare companies Marc believes that in Asia the potential for healthcare is huge
Marc Faber ends by saying that he thinks that eventually the banking sector will recover thanks to the money given by the governments free of charge , even though the bankers dumb that they are would be able to make money thanks to the bailouts , but the next shoe to drop in the world will be commercial real estate credit cards defaults and a lot of loans wouldn't be repaid...

Marc Faber Hold Real estate Gold Silver land Hard Assets The Dollar will worthless one day

Marc Faber very bearish on the future of the dollar says that eventually it will be worthless someday between now and then we can have wide fluctuations and the other currencies may not be much better an Investor should have positions in physical gold and silver and hard assets like real estate land and some other commodities , Marc Faber said ...Marc advises his clients to have assets in real estates up to 80% of their portfolio , it will be unusual for a wealthy family to have all their investments in equities and bonds and no real estate because most of the wealthy people of this world except the new economy wealth like Google they made their money out of technology but if you look at the old wealthy families , most of them are wealthy because they had real estate , they are well to do because they did not do anything stupid with their money , they are well-to-do because they stayed tight to the real estate " "Real estate is a great way to preserve the wealth to your children in case they are not that money investment savvy" although land can be easily confiscated under certain regimes or after a war etc ...gold on the other hand is easily transportable and hidden in case of turmoils Marc Faber adds that "yes if you have your real estate spread out in for example Brazil Argentina , let's say you have real estate or equities here in Singapore and we have World War III , I think at the end of the war Singapore will still be here because it will stay relatively neutral and nobody has an interest to drop a bomb on top of Singapore simply because it's politically in the world's contest totally insignificant , so real estate here will be safe , also equities here you have world class companies in Singapore"

Marc Faber buy Intel and Singapore Shares

Marc Faber Bearish in the Long Term

dr Doom Marc Faber, editor and publisher of the Gloom, Boom and Doom Report is not a bear in the near-term, but in the long-term. He tells Martin Sorrell, CEO of WPP and CNBC's Martin Soong that he is negative on the dollar in the long run , he expects inflation wars the collapse of the dollar rise in commodities gold and silver and Asian stocks ...Marc Faber recommends buying a basket of Singapore shares and Intel shares