Marc Faber on Bloomberg: China Economy May Crash in Next 12 Months 03 May 2010

All Governments in the western world have to be bailed out it's either gonna be through money printing or default

Marc Faber :"well i think it is another process of monetization , we have now synchronized the monetization in the world and what I mean is that essentially the Euro will remain weak and there will be more bailouts and for Greece this means terrific austerity and terrific recession , now the problem with the recession in Greece if you diminish the deficit from 30% in GDP o 3% is that as the economy shrinks the ability of Greece to pay its interests will also diminish and so they may default sooner or later anyway , but in the meantime certainly that is not optimistic or favorable for the Euro but it is of course favorable for resources , I'd like to add about resources that tax that Australia is introducing is negative for the companies that produce resources but it is positive for the commodities because it will contain the supply"
"I can tell you all the government have to eventually be bailed out in the western world it is either gonna be through money printing as I think or default , but they are over indebted especially if you consider the unfunded liabilities that arise from future pensions from social security medicare medicaid and so forth it does not add up , they 'll all default or they'll all print money but the outcome won't be pretty that I assure you "
The best is to swallow the hard medicine , when you have a financial problem to let companies that are weak go bankrupt and the same in the world , if you have weak governments , you have to look at Greece like a corporation there is no way that Greece can pay its debt it is over indebted the debt has to be restructured and not just shifted to the EU , so the best would have been essentially to leave the EU and default but of course that is unacceptable for many governments because the banks have lend too much money to Greece already "
Marc Faber, publisher of the Gloom, Boom & Doom report, talks with Bloomberg's Haslinda Amin about the outlook for China's economy. Faber, speaking from Hong Kong, also discusses Greece's debt crisis and the euro, the commodities market, and the implications of political unrest in Thailand for the nation's economy and stock market.




Dr. Marc Faber also known as Dr Doom is an investment adviser, investment analyst and fund manager author and publisher of the Gloom Boom & Doom Report ,and the author of "Tomorrows Gold" . Dr Faber is known for his contrarian investment approach. Dr Marc Faber is associated with a variety of funds and is a member of the Board of Directors of numerous companies.
In 1987 he warned his clients to cash out before Black Monday on Wall Street. He made them handsome profits by forecasting the burst in the Japanese Bubble in 1990. He correctly predicted the collapse in US gaming stocks in 1993; and he foresaw the Asia-Pacific financial crisis of 1997/98 and the resulting global volatility. Dr Doom motto is "Follow the course opposite to custom and you will almost be right"
Mr. Faber is also the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery, and is a director of Ivanhoe Mines Ltd. , a mining firm focused on the Asia Pacific region. He is also an adviser to a number of private investment funds.