Marc Faber`s Investment and Trading Ideas - A Tracking Blog About Dr. Marc Faber , Daily Tracking of Dr. Marc Faber Investment Strategy , Market analysis & Outlook and Media appearances
Opening remarks at the Bromsgrove Monetary Reform Conference in Bromsgrove, UK, Oct. 29, 2010. A micro-funding site for my new book, "No More National Debt". To check it out, go to KickStarter and search for Bill Still.
according to Bill Still gold money is fiat money too.Gold money is even more manipulatable by the bad guys. It's not what backs the money, it's who controls its quantity. If the bad guys want to cause a depression they just don't lend out their gold coins or their electronic equivalents.Bill Still said Bill Still recently released a documentary called "The Secret of Oz".
George Soros, Joseph Stiglitz, Elizabeth Warren, Robert Johnson, and more discuss the ramifications of financial reform - from the Make Markets Be Markets report, sponsored by the Roosevelt Institute.Video taken from the Make Markets Be Markets conference,New York City.The views expressed in this presentation are those of the speakers and do not necessarily represent the positions of the Roosevelt Institute, its officers, or its directors.
Speakers include Simon Johnson, George Soros, Michael Konczal, Joseph Stiglitz, Peter Solomon. Jim Chanos and some others.
Dec. 27 (Bloomberg) --William Black, associate professor of economics and law at the University of Missouri-Kansas City, talks about the outlook for the U.S., European and Chinese economies. Black speaks with Carol Massar on Bloomberg Television's "Fast Forward."
Nobel laureate Joseph Stiglitz and former RBI governor YV Reddy on QE2 impact on the US economy, dollar devaluation and currency wars, India's inflation problem and a whole host of other issues , in the second part : Nouriel Roubini and Raghuram Rajan on the benefits and risks of quantitative easing, the rush of funds into emerging markets and India's growth in 2011.
Marc Faber :"....All EMs have significantly outperformed the US and Japan over the last two years or so. Now with monetary conditions tightening somewhat in the world, we see interest rates going up everywhere. We could have a period of under-performance. The news about emerging economies has been very favorable. To a large extent, these favorable economic developments have already been discounted by the stock markets." via www.moneycontrol.com Dec 10, 2010
Modern economics is a subject that today's students must understand in order to protect their tomorrows. Inflation, the creation of money, and the regulation of the economy are explained. the banks in fact create money from *nothing* to a leverage ratio of 30 to 1 (and more), and then profit from the interest on the money they created from nothing! Also it's not the "governments" that create the money directly, they borrow it from private banks *at interest*. Therefore the is *no way* to "balance" our current economy by increasing money supply without getting into debt servitude to private banks.
The issue is not what money is backed by but who controls its quantity. In history GOLD was used as the ONLY money standard in order to crash the economy into a depression. It is SILVER which is the key. When gold AND silver was in circulation the money was plentiful and the economy thrived . Then when they removed the silver standard you could only buy & sell in gold. This KILLED the economy. GOLD is scarce . Remember its who controls its QUANTITY that counts !
Marc Faber :" The entire energy sector including natural gas is probably relatively attractive because the global economy could surprise on the upside. In other words, the EMs continue to grow and the oil demand continues to grow, especially out of China and India. The Europe and US stabilizes and also recovers somewhat, in which case the demand for oil will go up and drive up prices." via www.moneycontrol.com Dec 10, 2010
Milton Friedman Biography from Wikipedia :
Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist, statistician, a professor at the University of Chicago, and the recipient of the Nobel Prize in Economics. Among scholars, he is best known for his theoretical and empirical research, especially consumption analysis, monetary history and theory, and for his demonstration of the complexity of stabilization policy.[1] He was an economic advisor to U.S. President Ronald Reagan. Over time, many governments practiced his restatement of a political philosophy that extolled the virtues of a free market economic system with little intervention by government. As a leader of the Chicago school of economics, based at the University of Chicago, he had great influence in determining the research agenda of the entire profession. Milton Friedman's works, which include many monographs, books, scholarly articles, papers, magazine columns, television programs, videos, and lectures, cover a broad range of topics of microeconomics, macroeconomics, economic history, and public policy issues. The Economist described him as "the most influential economist of the second half of the 20th century…possibly of all of it".
Speaker: Professor Joseph Stiglitz Chair: Professor David Held ,This event was recorded on 8 February 2010 in Peacock Theatre, Portugal Street ,Stiglitz lays out not only the course of the financial crisis which began in 2007, but its underlying causes, and shows why much more radical reforms are needed than are currently being contemplated if we are to avoid similar 'systemic' crises in the future. Showing why the bailout has been only marginally effective and how it could have been much more so, and outlines the enormous opportunity - not yet taken - to design a new global financial architecture.
Marc Faber : .....we have to distinguish between the stock market and the economy as you know the real economy begun a recession in late 2007 and then between September 2008 and March 2009 we fell off the cliff and then we were at the very low level of economic activity then the huge stimulus packages kicked in and the money printing kicked in in other words zero interest rates and quantitative easing by the federal reserve and also other central banks , that then stabilized the global economy and when you have car sales dropping 50 percent and more then you gonna of course have a rebound , but the question is how sustainable the rebound will be or is this rebound at the present time actually borrowed from the future , and in my sense , here I am talking about the economy that the economy in near term can recover may be the recovery will be somewhat lengthier than expect , then crack up boom because the first stimulus package in the US probably will be followed by a second one and money printing will lead to even more money printing next years so it could last say twelve to eighteen months and then we will get another set of problems rising from each government action has unintended consequences ..."....etc...
the above transcript was done manually and hence it is very approximate...
Marc Faber:"....My principal criticism is that the Federal Reserve can drop dollar bills onto the United States from helicopters as Mr Bernanke says - not from helicopters but electronically they can print money. The criticism I have is that Fed can control the quantity of money quantity that it drops onto the United States. But they do not control where it will flow to and this money has flown through the American trade and current account deficit to emerging economies and this has boosted the growth rates in emerging economies and their currencies. So the benefit of expansionary monetary policies has not been felt in the United States, but in emerging economies and that is my main criticism.... " via economictimes.indiatimes.com 28 Sep, 2010
Storm clouds continue to gather, A hard rain is soon to fall.we continue to walk in the path of false prosperity using a dollar printing press
Get ready people, hard times are coming. We are about to become just another banana Republic; a second world nation.
If you have any money left at all, and while it still has value, I would invest it in these things, and in the order that I list them. You will need: guns, ammo, water, food, clothing, survival equipment, gin or whiskey (for medicinal purposes), bars of gold (if you lose your guns you can hit someone over the head, and take their guns), silver (same use as gold).
Collect as much junk as possible, you'll need it to make stuff for yourself, because there'll be no more imports from China; the world will be in chaos, you will have to fend for yourself. America has 100 trillion dollars in unfunded liabilities according to Rep. Ron Paul.
You better rethink your position.
You also, might think about investing in livestock.
Bloomnberg TV : So then - but you have a lot of your investments in Asia, Marc. Then what are you doing? Marc Faber :"...Well, as recently, but I've been lightening up. I still have positions because I don't see a lot of alternatives. I own gold and silver. And I own real estate. And I own equities. But I'm not attracted to buy US treasuries at this stage, although I have to say maybe in the very short run, say the next 10 days to two weeks, treasuries could rebound in kind of a technical rebound. But that isn't the long-term view. I think in the long run, interest rates will go up. And they'll be eventually significantly higher. In my view, the 10-years treasury note yield should be around 5 percent...." Marc Faber in Bloomberg Television Dec 09 2010
Marc Faber :"...In general, investors should one day have approximately 50% or more of their money in emerging economies. I have all my money in emerging economies for the money that they allocate to real estate and to equities. Of course I also have bonds in the developed world and also cash in on the developed world, but in general, I am very optimistic about the emerging economies. But that does not change the fact that over the last few months, in fact since April because I saw that April would be a high for the S&P at 1219, I have taken some money off the table because a correction is overdue. "
Dec. 21 2010 | Gilles Moec, senior European economist at Deutsche Bank joined CNBC on Tuesday with the Spanish parliament due to vote on the country's 2011 budget and after the country's last scheduled debt auction for 2010.
Dec. 20 2010 | Moody's warned that the tax bill could have a negative effect on US debt. Now that the bill has passed, there are some concerns US Treasurys could be downgraded. Peter Morici, a professor at U of Maryland; Rodney Anderson, author of "Credit 911"; and CNBC's Eamon Javers discusses the likelihood of that scenario.
MARC FABER : Ireland,Spain,Greece,Portugal,Belgium are the rotten apples.
Marc Faber :...I think what you need to avoid are government bonds , now can they rally for ten days , could be the case but in general you do not want to be in sovereign bonds certainly not of countries like Spain Portugal Greece Ireland Iceland and so forth because they would have to be restructured . but the problem is usually when you have bad apples in your family the whole family becomes rotten so all the European governments in my opinion will have government debt that probably will become difficult to pay off or even meet the interest payment on the government debt ......The world has over six billion people we have 1.3 billion in China one billion in India and I live in Asia , Asia has 3.6 billion people it's a growing region it's demographically young with the exception of Japan and so I have a special knowledge about Asia and therefore I also invest in Asia and I have two or three investments in Switzerland but hardly any..... On a global scale whether Ireland exists or doesn't exist even if Spain exists or doesn't exist , or Belgium exists or doesn't exist it's completely irrelevant , it's sad to think of one's self that I am completely irrelevant but that's a fact of economic life today .......
Marc Faber :"...The entire energy sector including natural gas is probably relatively attractive because the global economy could surprise on the upside. In other words, the EMs continue to grow and the oil demand continues to grow, especially out of China and India. The Europe and US stabilizes and also recovers somewhat, in which case the demand for oil will go up and drive up prices. On the other hand, if the world again goes into recession, it will be accompanied by significant geo-political tensions, in which case there could be oil interruption and oil would also rally. In either case, oil will stay high...." via moneycontrol.com
well it isn't getting better... what is it going to be like end of the year? or end of 2011?
I hope people are trying to protect them selves.. John Williams from shadowstats.com about the U3 cooked numbers from the government still reading about bank closures coming.John Williams from ShadowStats.com says buy and store scotch! Put everything you got into canned food and shotguns! And horde scotch and gold oh and buy ammo i think ammo would be a great currency in the future especially if the dollar collapses. 7.62x39 mm and 223
also get handgun ammo, and mres, lambs, pigs, goats, all can be used for barter. hell even rabbits cheap to raise and fur is worth good money.
Three or four years into the future I think we could be in a hyperinflation, within the current year youre going to see much higher inflation than most people are looking at, John Williams told MarketWatch.
Williams said that his definition of hyperinflation would be a situation in which a $100 dollar bill would become more functional as a piece of toilet paper than a store of value.
This is a time when you want to preserve your wealth and assets because inflation will knock the value out of it, he added, advising that people buy physical gold and assets other than the U.S. dollar.
Then when the hyperinflation hits youll see disruption of normal commerce, you wont have enough $100 dollar bills to buy what you want, said Williams, adding that items to barter with, such as a bottle of scotch, would be more valuable than actual cash, even in large quantities.
Williams said that such items should be procured now in bulk so people had some means with which to barter and get them through rough times.
At least as far back as April 2008, six months before the collapse of Lehman Brothers and Bear Stearns, Williams predicted that the world economy was entering a phase of hyperinflationary depression that would peak in 2010.
In a hyperinflation special report, Williams said that the U.S. was on an irreversible course of financial armageddon that would likely lead to extreme political change and/or civil unrest.
Top trends forecaster Gerald Celente has echoed Williams advice, remarking recently that putting food on the table will become a primary concern over buying gifts at Christmas.The J.P. Morgan [banking] interests and Global Bankers found it was only necessary to purchase the control of 25 of the greatest papers. ...an editor was furnished for each paper to properly supervise and EDIT information etc etc
Define HIGH TREASON America, do Police Protect Criminals Now?? G20? this is what happens when you do not include home prices in the inflation index, when you let home prices increase to high that means personal debt is really huge ie mortgages in order for people to pay off all these mortgages you have to keep increasing the money supply or face a shortage of cash to pay off these huge debts
Marc Faber: In general, emerging markets have been weak relative to the US and relative to Japan and for the next six months emerging markets (EMs) will not perform all that well."
"In India we had a market that performed superbly between March 2009 and just about three weeks ago. It was ready to come on the profit taking anyway. Now we have this profit taking phase and it will last for a while"
"We could easily in emerging economies have a correction of 20-30%." Marc Faber added
MARC FABER: "....I think increasingly, investors begin to realize that between the Republicans and the Democrats, the Republicans don't want to increase taxation, and the Democrats don't want to cut spending. And so the deficit in my opinion will stay above $1 trillion for as far as the eye can see...."
Marc Faber : "....I don't think it will double dip for now. And we live in a global economy today. And you have part of the global economy that are relatively weak, like the U.S. and Europe, although from the lows, they have recovered somewhat. But then you have other parts of the world that are still very strong, the emerging economies, in particular China and India. Now the big question is obviously what will happen to that part of the global economy because that has been driving overall economic growth in the world. And I think the Chinese economy is decelerating. And I think that next year there could be some significant disappointments. "...Marc Faber told Bloomberg on 12/9/10
an excerpt from the dialogue between Bloomberg's LIU and Doctor Marc Faber editor and publisher of the GLOOM, BOOM, AND DOOM REPORT LIU: ...So then, Marc, if you would buy into treasuries on a rebound, would you also buy into equities at all then, U.S. equities?...
MARC FABER: ...Well, I mean, U.S. equities come up reasonably well compared to emerging market equities at the present time. This is not a long-term call. But tactically, right now, I think the US market may actually outperform emerging markets. The market I like actually best is the Japanese stock market.... LIU: ...The Japanese market? Well, that's an idea. Marc, we'll have to leave it there. Good to talk with you. Marc Faber there from Thailand. ...
Marc Faber : “The Europe and US stabilizes and also recovers somewhat, in which case the demand for oil will go up and drive up prices,”
“If I look around markets, we had a very negative sentiment about the euro six months ago. Recently, we had a very negative sentiment about the US dollar. From this very low sentiment level for the US dollar where everybody hated the US dollar, in other words we can have somewhat of a recovery.” Marc Faber told India’s CNBC TV channel recently
Brazil's Rising Star As the U.S. and most of the world's countries limp along after the crippling recession, Brazil is off and running with jobs, industry, and resources. Steve Kroft reports.Lots of Ex Military Folks are moving down to Brazil by the pound to escape the upcoming collapse.
Nobel Economist Mundell: Add Renminbi to IMF Reserve
China's currency has strengthened to the stage where it is "almost de facto convertible" and should be included in the international reserve basket held by the IMF, Nobel Prize-winning economist Robert Mundell said in this interview with the HKTDC prior to his appearance at the Asian Financial Forum, 17-18 January 2011.
Marc Faber more bullish about the Asian Currencies such as the Singapore dollar than the Australian and The Canadian Dollars which are very tight to the commodities cycle and hence vulnerable to any slow down of the demand from China
Marc Faber:"...I do not think the Euro will go to parity , but can it go down another ten , fifteen percent ? ...easily I think the Eurozone will bailout Greece it will also bailout other countries like probably Spain at some stage , Portugal ...and that is obviously not favorable for the currency but this is the patern we have today we had excesses and we had misallocations of capital between 2002 and 2007 , then in 2008 we had the financial crisis a period of deliveraging sets in and then the government come in and bailed out essentially companies that failed notably in the financial sector , and of course in the US the two biggest bailouts Fannie Mae and Freddie Mac which were government sponsored enterprises and in Europe they will have to bailout countries like Greece and this is basically a monetization and it leads to a loss of purchasing power of the paper money both for the U.S. Dollar and the Euro , now I believe that all paper currencies are not desirable t they will lose value , will the Euro lose more value than the dollar ? could be for sis month and then may be the US Dollar loses more value than the Euro we'll have a kind of a shift ...In General I think that the Asian currencies are in a reasonably good position to appreciate further as the Singapore dollar has recently done , i am less optimistic about the Australian Dollar and the Canadian Dollar because they are very tight into the commodities cycle ...you know if I expect the Chinese economy to slow down or even to have some kind of bursting of the property bubble then it will affect the demand of China for industrial commodities and that will be negative for Australia and Canada .....
International investing guru Marc Faber shares his thoughts on the fate of Greece as well as his view on the euro and other major currencies. Marc Faber is less optimistic about the Aussie and the Canadian dollar but he is bullish about the Singapore Dollar
The financial crisis has shown that speculation, funds, and credit default swaps create a huge amount of virtual wealth, but the real economic motor is driven by the manufacture of products using the earth's natural resources. The race is already on to control rare resources like lanthanum, scandium and thulium; essential for hi-tec but everyday products such as computers and mobile phones.Even without environmental regulations, China has more deposits. We simply don't know where the rare earth minerals are.What a coincidence how the U.S just happened to find those resources in Afghanistan! the regulations that restrict mining and exploration in the western/developed world, do not apply to the likes of the Democratic Republic of Congo (DRC) South America and China.
Fed Chairman Ben Bernanke gives a rare interview to Scott Pelley in which he discusses pressing economic issues, including unemployment, the deficit and the Fed's controversial $600 billion U.S. Treasury Bill purchase.
He knows what is coming down the line: civil unrest. Pelley failed to ask some hard follow-up questions like, "So do you think Congress will extend unemployment benefits for 'a protracted period of time'?" Not one word about why they exclude food and energy prices from inflation calculations. "Some people think the $600 billion is a dangerous thing to try." That would include members of the Federal Reserve. "Panic of 2008"? Only panic was at Goldman Sachs - will I get my bonus? Sure!At this point there's nothing to save this house on cards economy. This system encourages people to act irresponsible, taking on huge risks to overconsume. When you over-consume you take your future consumption away, and here we are out of money buried in debt. It needs a national chapter 11 to liquidate the debt in the system before it can truly recover. A few QE tweaks here and there ain't gonna cut it.
Marc Faber :"...I am still positive about economic growth in the emerging world. But what disturbs me at the present time is that in late August, sentiment was very negative worldwide and people said that Dow will drop to 1000 and so forth and so on. Suddenly now, the consensus is that you have to be in equities, you have to be in gold, you have to be in assets because central banks around the world will print money. That is correct, they will print money. But sentiment has become so universally bullish that about all assets, including especially emerging economies - in US dollar terms - are up. The Indian market this year is already up 19%, Malaysia 28%, the Philippines, Indonesia and Thailand each over 40%.
We already have big moves and I see all the brokers upgrading the earnings estimates and so forth. So I become a little bit apprehensive about this universal bullishness. I would rather think that after a strong month of September - when everybody was expecting September to be a horrible month - October and November may be bad months. In the past, October has frequently been a disastrous month like we had the October 1987 crash, we had the late September-early October 1929 crisis. In 1976 and 1978, we had very bad months in October and November. So who knows, out of this present bullishness, we could have some kind of a sharp correction developing. ..."
Marc Faber:"...In general, investors should one day have approximately 50% or more of their money in emerging economies. I have all my money in emerging economies for the money that they allocate to real estate and to equities. Of course I also have bonds in the developed world and also cash in on the developed world, but in general, I am very optimistic about the emerging economies. But that does not change the fact that over the last few months, in fact since April because I saw that April would be a high for the S&P at 1219, I have taken some money off the table because a correction is overdue. ..."
Marc Faber :"...We have high volatility in all markets, a 10% move is nothing now-a-days. We have very high intraday volatility in the markets. We had never before so many up days with volumes of 9 to 1 and down days with volumes of 9 to 1. The downward volume is 9 times the upward volume and on up days, the up volume is 9 times the down volume. This is most unusual. So we have this volatility and this volatility comes about because the private sector is basically still deleveraging while the government sector is leveraging up. So you have economic and financial volatility in markets that is very high. ..."
Marc Faber :"...I think that commodities have not only been strong recently, they have been strong for a long time, specifically precious metals. If you look at the Dow Jones in gold terms it peaked out in 1999, and is not down 84% in gold terms. In other words you can’t measure any thing any more in dollars because the function of money is to be among others a store of value and also unit of account, but if you print and print and print, the function of store of value expires or is non existent, and the unit of account doesn’t work anymore. So we need to take a new unit of account which is gold or silver and in those terms, the US economy has contracted massively since the year 2000 and the dollar has been very weak as well as the bond market and eh stock market in gold terms...."
Niall Ferguson : China Bail Out the EU , CNN's Fareed Zakaria and Niall Ferguson and the FT's Gillian Tett on the EU crisis and possible help from China.
Marc Faber :.....So actually, the US monetary policies have been very good for Asia, specifically for China because it fostered industrial production growth in China, employment growth, wage increases, domestic consumption, increased demand for raw materials, that then lifted commodity prices. For that actually the developing world, the emerging economies including China, India , Vietnam, Brazil and so forth should all send a thank you note to Bernanke......
Marc Faber : ...We have high volatility in all markets, a 10% move is nothing now-a-days. We have very high intraday volatility in the markets. We had never before so many up days with volumes of 9 to 1 and down days with volumes of 9 to 1. The downward volume is 9 times the upward volume and on up days, the up volume is 9 times the down volume. This is most unusual. So we have this volatility and this volatility comes about because the private sector is basically still deleveraging while the government sector is leveraging up. So you have economic and financial volatility in markets that is very high....
The University of Edinburgh Enlightenment Lecture Series with the support of ScottishPower presents Globalisation & the 21st Century Enlightenment by Joseph Stiglitz.
The Principal of The University of Edinburgh, Timothy OShea said: The University is delighted to welcome Joseph Stiglitz to speak as part of our Enlightenment Lecture Series. He is one of the giants of economics, his contributions across every part of the discipline are recognised the world over. He has already played a major role in shaping events in the worlds recent economic history, and now he is set to shape our future with his ground breaking theories on how globalisation needs to work for disenfranchised peoples worldwide. His lecture examining themes of global economics for the new millennium promises to be a fascinating insight into new economic theory.
Marc Faber:"...My principal criticism is that the Federal Reserve can drop dollar bills onto the United States from helicopters as Mr Bernanke says - not from helicopters but electronically they can print money. The criticism I have is that Fed can control the quantity of money quantity that it drops onto the United States. But they do not control where it will flow to and this money has flown through the American trade and current account deficit to emerging economies and this has boosted the growth rates in emerging economies and their currencies. So the benefit of expansionary monetary policies has not been felt in the United States, but in emerging economies and that is my main criticism.
Now what happens if so much money flows to emerging economies is that you get bubbles over time - currency bubbles, stock market bubbles, real estate bubbles. The question is then how do these emerging economies’ central banks react to that. The Brazilian Finance Minister has just said we are in the midst of a currency war, a foreign exchange war and the central banks of emerging economies have a choice to do nothing - then they have high domestic inflationary pressures with accompanying bubbles - or they tighten monetary policies and their currency becomes even stronger and you have a speculative bubble in the currency. So the Fed has put them actually in a very difficult position and I believe we are going to end up with bubbles in precious metals and to some extent in emerging economies’ real estate and equity markets and every bubble eventually bursts. It does not have to happen tomorrow. It could last another year, but the Fed is actually endangering emerging economies at the present time. ..."
Marc Faber :."...I think that commodities have not only been strong recently, they have been strong for a long time, specifically precious metals. If you look at the Dow Jones in gold terms it peaked out in 1999, and is not down 84% in gold terms. In other words you can’t measure any thing any more in dollars because the function of money is to be among others a store of value and also unit of account, but if you print and print and print, the function of store of value expires or is non existent, and the unit of account doesn’t work anymore. So we need to take a new unit of account which is gold or silver and in those terms, the US economy has contracted massively since the year 2000 and the dollar has been very weak as well as the bond market and eh stock market in gold terms..." ..... in a recent interview with moneycontrol
Marc Faber : "...Yes I think the criticism arises because we have too much of a good thing, in other words the Fed's monetary policies now lead to some kind of bubbles in emerging economies through capital flows. Now this incoming liquidities they can be absorbed in 2 ways, either like the currency appreciate sharply or you have domestic very high asset inflation or combination of the two. The problem is, with all this, that once the speculators see that said the Thai Baht, or the Malaysian Ringitt appreciates and that asset prices in those countries go up, they pile in even more and then you have even larger speculative bubbles,and excess liquidity and dropping dollar bills on the United States from helicopters like Ben Bernanke suggested, the problem with that is he doesn’t know where the money will flow and in this case, excess liquidity flows, into emerging economies and into precious metals and new bubbles are building up, that at some point in future, will burst and then you have another problem on your hands the way you had the problem of the Nasdaq bubble burst and the housing bubble burst...."in moneycontrol.com
Joseph Stiglitz on American banks The violations have been massive The Nobel prize-winning economist says banks are undermining the rule of law in America and bad mortgages still fester
Dec. 1 2010 | The Federal Reserveon Wednesday revealed the details of some $3.3 trillion in emergency loans it made to financial institutions during the credit crisis as mandated by a revamp of US regulations. CNBC's Steve Liesman has the details.
Marc Faber is out with his latest report which discusses his outlook for stocks, bonds, commodities, gold, and the dollar. Regarding the Gold in particular Marc Faber says that he still likes goldand continues to accumulate more gold , but he says a correction to $1200 would not surprise him. Gold bull market remains intact as the majority of individual investors and institutions remain under invested.
Marc Faber:..."...I think that commodities have not only been strong recently, they have been strong for a long time, specifically precious metals. If you look at the Dow Jones in gold terms it peaked out in 1999, and is not down 84% in gold terms. In other words you can’t measure any thing any more in dollars because the function of money is to be among others a store of value and also unit of account, but if you print and print and print, the function of store of value expires or is non existent, and the unit of account doesn’t work anymore. So we need to take a new unit of account which is gold or silver and in those terms, the US economy has contracted massively since the year 2000 and the dollar has been very weak as well as the bond market and the stock market in gold terms...."
"You don't want to short it here but for the longer period the euro is going much lower," "In a year and a half or two years it's really going to be a big mess." Charles Nenner, says.
Marc Faber :..."...the terminal value of the dollar is precisely zero, the printing cost of bank note that is the intrinsic value of the dollar. But it will not move there right away. since the formation of the federal reserve, in 1913, the price of gold has gone up from USD 25/oz to over US 1400/oz, In other words the value of a dollar bill has gone down by 97% in gold terms and it took more than a 100 years. Now the next time the value of the dollar declines by 97% won’t take a 100 years I think it will happen in 10-15 years." in www.moneycontrol.com
Dr Marc Faber was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager.
Trick of the Dialectic ~ Alan Watt 23rd May, 2013
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Alan Watt [23rd May, 2013] Trick of the Dialectic Alan Watt Recommended
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The Fundamentals Have Never Been Better For Gold
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