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
David Rosenberg, chief economist at Gluskin Sheff & Associates,and former Merrill Lynch North America Chief economist and Former Bank of Canada Chief economist says that he is 99.9% sure that there will be a recession next year that the FED will have to do a QE3 that there is no more room for another fiscal stimulus"I think that by 2012 I give it a 99 percent of occurring " " when you have a manufacturing inventory cycle recessions usually separate 5 years apart , but when you have a balance sheet recession we are talking about credit contraction asset deflation for example residential real estate , when you have these sort of balance sheet recessions the downturn tends to be separated every two , two and half years so I think that by 2012 that will be roughly the time we going to see the next downturn "
Dr. Marc Faber : "...We should have been in deflation after 1980 because the Kondratieff peaked out in 1980 or in the mid-seventies to the eighties and then we have a downward wave in commodity prices and declining interest rates. That is the time we should have had deflation. But now that commodity prices are turning up it‟s more likely that we are in a very high inflationary environment and the reason I have this debate with the deflation is not so much that they believe in deflation and that I believe in inflation - but their conclusion to buy U.S. government bonds in a deflationary environment is, of course, a disastrous recommendation because if you really have the credit collapse, the deflationists are arguing about, then obviously tax revenues will collapse and the fiscal deficit will go to the moon.I mean, Tim Geithner just signed the treasury report about the budget deficit about the financing of the U.S. for 2010. The deficit was not $1.4 trillion but $2 trillion signed by him. And so the government debt goes up and up and up and up and then the interest payments from the government go do go up and the quality of government debt goes down and so eventually you have a junk bond in the U.S.. I believe the U.S. government bonds are junk already today but as long as you have rating agencies that are dreaming and publishing reports that are completely useless, people still buy the government bonds in the U.S. " in a recent interview with Chris Martenson
Dr. Marc Faber : "...Yeah, but do you understand its very difficult to define inflation. The Federal Reserve essentially targets core inflation. Core inflation has nothing to do with your cost of living increases. And as you know the basket of goods and services that are used to measure inflation can be weighted in such a way that things that go up a lot like health care costs, insurance premiums, energy, in this regard entirely and other items where prices are deflating like a T-shirt are over-weighted. " in a recent interview with Chris Martenson
Housing, credit, public finances, and the labor areas of the economy are currently impaired and until the country gets over those structural impairments, economic growth will be tough for a while, says Mohamed El-Erian Pimco CEO/Co-CIO:" I'm really worried by the data. we've had a string of bad data. look overnight, Brazil, France, china. and Portugal, Greece, all of them came in lower than expected. all are tapping the brakes as in brazil. what we're having right now is a global growth slowdown. that's going to impact top line revenue growth. there isn't much cost to prune anymore. most of it has been cut. there's going to be some pressure on profits. the good news is the balance sheets for most multinationals are pristine and profits are high. we're good not going to sustain this sort of profit growth in this global economy."
“My advice would be to diversify heavily and have money in other jurisdictions than the United States, in other assets than U.S. assets,” “In say Asia, Asian equities, Asian real estate. And I would have some money in custody outside the USA, in Australia or in Singapore or in Hong Kong or in Switzerland and not have all my assets here in the United States.” Marc Faberin Insider Monkey
Professor Steve Keen debunks the myth that the population growth supports property prices : the population causes house prices to rise is pretty much saying that rising population is growing more rapidly than we are building dwellings , that mans that the number of people demanding house rises and therefore the house price rises and that got a superficial appeal to it , , when you look at the data you find that the number of people per house in Australia has been dropping from very high levels 3.5 people per house down to 2 people per house ...the Americans were doing the same thing they were building big mansions palaces for the poor and they built these palaces and believed these palaces will rise in price that was the major motivation to doing it and they borrowed money to do it and the borrowed money they took out is what drives the house prices to go up not the population demand , we are repeating the same process ...
"If it were a bubble a lot of people would have gold. The whole world would be trading gold 24 hours a day," "But I don't think it's really a bubble. I think gold is maybe cheaper today than it was in 1999, when it was $252." - in CNBC
Marc Faber : I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it.For the investor, the question is: How do I navigate through this complete disaster that is going to unfold? And I think if you look at different asset classes– real estate, equities,bonds, cash, precious metals – I suppose that you have to be diversified. I think real estate in the U.S. may go down another 10% or so, or even 15%, but I am always telling people, if you can buy the piece of land or the house you like, what do you actually care if it does down another 10%? If everything I bought in my life had only gone down 10-15%, I would be very rich, because a lot of things became worthless, especially loans to friends, and bonds, and so forth.Look at the history, for example, of Germany, for the last 100 years. They had World War I. They had the hyper-inflation in World War II. The bond-holders got wiped out three times. If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something. You were not wiped out. I think that in equities you will be better off because you have an ownership in a company,than by being the lenders to companies, and the lenders, especially, to governments "
" In a money-printing environment, it is very difficult to know what is actually cheap and what is expensive. Is the price of wheat high, or is it low? Inflation-adjusted,it is extremely low. In nominal terms, it is relatively high. I believe that, in March 2009when the S&P was at 666, the market was actually much cheaper than is generally perceived, because of the money-printing, and I do not anticipate that we will see 666 on the S&P again, in nominal terms.In other words, they are going to print so much money that the S&P could be at, perhaps,2000, but in real terms, it could be down below the lows of March 6, 2009. Maybe in gold terms, we could one day reach a ratio of Dow Jones to gold of 1-to-1, as we were in 1980. In other words, the Dow could be perhaps at 10,000 or 12,000, and gold could beat the same level.That is why I am advising people to accumulate gold. Can gold have a correction? Yes,there has been a little bit too much euphoria about gold, and we may have a correction,but I do not think we are in a bubble in the price of gold. In fact, I could make a case that gold, at this level of $1400 an ounce, is cheaper than in 1999, when I look at the unfunded liability growth of the U.S., at the credit growth of the U.S., and at the household growth, and at the money printing, and at all the wealth creation that happens in China and Russia.Just consider, when I started to work in the 1970s, it was said there were two billionaires in the world. One was Rockefeller, and the other one was Mr. Ludwig. Then in 1980there were, I think, six or eight billionaires. Now you have thousands of billionaires.The paper money has become of lower value, and in that environment, it is conceivable that actually stocks do not go down a lot, in nominal terms, but they go down inflation-adjusted, and not inflation-adjusted by what the government is publishing, but in inflation-adjusted terms, as John Williams points out. He says inflation is running at 8%per annum. I have it slightly lower, depending also on the household, whether you have children, or no children, and where you live, but I would say between 5-10% in America is probably a realistic figure, and between 8-12% in countries like India, China, Viet Nam."
Mark Mobius , of Templeton Emerging Markets Group shares his strategy for overseas investment , Mark Mobius is one of the most renowned global investors on the plant. Mark Mobus oversees $50 billion in assets and says emerging markets has been providing a wealth of opportunities, and he's been saying that for a long time.
Mark Mobius : "the reason why i say that is the problems that we faced during subprime have not really been solved. banks that are too big to fail, they have gotten bigger. derivatives that are really not regulated yet, and the fact that the bank balance sheets around the world, in many of the larger banks, are not really that healthy, so you have a situation which if not corrected will result in another crisis. now, i must also state it's no big disaster. in fact, it could be an opportunity, particularly in emerging markets, because it will give us an opportunity to buy cheap stocks again, so i don't consider it a very bad thing to happen. of course, we don't distinguish to happen, but i think it is -- it is inevitable. "
Marc Faber : The CIA is completely useless they had no idea that the unrest ( in North Africa and the middle east ) would start they had no ground information that something was going on so the US and this president had no way to react properly
Stephen Roach, Morgan Stanley non-executive chairman.:"I agree on both counts. too bad we didn't get to those, but i'll say one thing about monetary policy. he's a terrific central banker. we need more central bankers like richard fisher, but he spoke a lot about the fed post-crisis, and i think we'll have a much different assessment of the fed pre-crisis. it's pretty clear to me that a 1% federal funds rate was not the right answer for the u.s. economy for several years leading up to the mortgage and credit crisis. it's equally clear to me right now that zero is probably not the right answer either, and I worry we're setting ourselves up for yet another series of bubbles that could end rather painfully. we've got to take a long and hard look about not what they are doing to stave off the post-crisis pain but to prevent the next crisis from ever happening again"
The Rolling Stone's Matt Taibbi explains why Goldman Shachs CEO Lloyd Blankefein should face criminal charges for fraud and perjury Yes, and also Ben Bernanke, preceded by Alan Greenspan, Larry Summers, Robert Rubin, and Henry Paulson just to name a few. Oh I almost forgot Dominique Strauss-Kahn....and Goldman gets away with it because they were–are Obama's biggest campaign contributors.Thank you Obama for giving Goldman Sachs trillions of dollars in bailouts of tax payer money so they can continue to screw us Americans
A modern nation state is designed like a pyramid a compartmentalized pyramid . this includes organized crime and intelligence agencies. in every moderately successful nation organized crime and intelligence services are integrated in a revolving door fashion. the US is a "corporation" with 2 sets of books
Treasury Secretary Tim Geithner's address in Boston.Geithner: Need Margin Requirements on Derivatives : Geithner says wall street needs to stop opposing financial reform funding and appointments. those who run u.s. major institutions today, I'll just offer my judgment. you should be champions. not opponents. of getting stronger people in place in these bodies over time. that will matter more than almost anything else to the success to get these reforms designed. they're incredibly complicated to get done well. requires not just knowledge of the economics or regulation or policy we're trying to pursue but how to make that work with a very complicated market that's changing rapidly.
Marc Faber : The low interest rates led to over allocation of capital to the whole housing sector. The Federal Reserve did not realize the crisis until 2007, when the Fed started lowering rates. They also did not realize how widespread the problem was. - in Ira Sohn Conference
Marc Faber in CNBC : It would take a long time to go into details, but the main issue isn't between Democrats and Republicans. It is an issue of entitlements. Most people are not well off, so they want more transfer payments. They people who are doing well and work hard don't want to pay those people. But they are probably only about 5%. The poor people far out-number the well-to-do people, and they have far more votes than them. They only way to strike back is through inflation. Also, by outsourcing all the work to China, they have disenfranchised the poor workers. And by printing money asset prices go up. This causes wealth disparity.
This isn't a conspiracy. If you think about it, the rich people have far fewer votes than the poor people. 50% of babies born in America are born to poor mothers who are not married. What kind of education will these children get? And they have the same vote as someone who has affluence and influence and who has worked hard all his life. They think that the system is cheating them, so they are going to cheat the system.
The tragedy is that the system has become dysfunctional. We are not living in the America that it used to be. Something changed along the way, and everyone just wants to rip off the system.
Rich people benefit from inflation because the money flows into assets, and then they can shift their assets overseas. The ordinary man doesn't have that potential.
Alan Greenspan , former Fed Chairman gives his Insight on whether the data seen over the past month is more than a temporary blip, and the lack of interest in European political and fiscal consolidation, . There is a limit to what the U.S. Treasury can borrow, says former Federal Reserve chairman Alan Greenspan, who also shares his concern that the U.S. is running out of time so resolve debt issues.
Dr. Marc Faber commenting about the LinkedIn IPO : "I think it's another bubble you understand concept stocks , yes it is a business but it is a business you can enter in relatively easily so I thing there will be a lot of competition ... I always had an account at Facebook and so forth but I think eventually people got tired of it (of Facebook) i do not think it will go bust bust , but every technology company in the imagination phase is doing well and after when they have to deliver earnings then the PEs go down and so forth I am not saying that they all go bust but I think they are all fully valued and I personally would not buy them but I would not have bought a lot of the tech stocks that went up so I man i am the model example for picking tech stocks well...- in Bloomberg TV
Marc Faber : ...well I do not like treasuries for the long run but I think they could rally somewhat for the next three months you know they are not going to collapse for the next three months , and the dollar will probably strengthen against the Euro for the next three months that will be my impression , so if you have large exposure to foreign currencies I would rather now move back to US dollars , I think there is an asset class in the US that is inexpensive but it won't go up but it is inexpensive is real estate , yes very inexpensive compared to the rest of the world ...in investment you have to be patient , the impatient people they always buy things that are moving right at the end of their trend like the NASDAQ in year 2000 like commodities in year 2008 at the peak and so forth and so on ...you better buy things that are depressed even if you have to wait five years but they offer some value" ...in Bloomberg TV
Marc Faber : Well the positive aspect of my negative view is essentially that you shouldn’t own cash and government bonds but you should be in assets like real estate or equities or precious metals or in commodities.That is the positive view. In other words, the more negative you are about the world and the geopolitical trends which will lead to war, the more likely it is that you will do better in equities than say in bonds and cash. - in www.businessinsider.com
Mike Mish Shedlock , of Sitka Pacific Capital : we are seeing weakness across the board , we are seeing weakness in Australia we are seeing weakness in China , Italy came out today with an unexpected plunge in retail consumer spending , so where all does that lead ? and only so much of this you can blame on Japan I mean the whole world is not collapssing because we could not get auto parts from Japan
Marc Faber : ...well I do not like treasuries for the long run but I think they could rally somewhat for the next three months you know they are not going to collapse for the next three months , and the dollar will probably strengthen against the Euro for the next three months that will be my impression , so if you have large exposure to foreign currencies I would rather now move back to US dollars , I think there is an asset class in the US that is inexpensive but it won't go up but it is inexpensive is real estate , yes very inexpensive compared to the rest of the world ...in investment you have to be patient , the impatient people they always buy things that are moving right at the end of their trend like the NASDAQ in year 2000 like commodities in year 2008 at the peak and so forth and so on ...you better buy things that are depressed even if you have to wait five years but they offer some value" ...in Bloomberg TV
Mish Shedlock speaking about the House rejecting a proposal to raise the debt ceiling without accompanying spending cuts: "I would like to see the implications" of a technical default, " because I think all the hype out there surrounding this that the whole credit market is going plunge and Europe defaulting , ...we missed the debt ceiling before at least twice under Clinton and I think a couple of other times as well so ...this is a whole game of musical chairs here , this is a political sideshow and no more." "People like Paul Kurgman think we should just continue on the path we're on until the economy recovers," he says. "The economy is not going to recover until you stop throwing money at it — wasting it on projects that don't need to be done."
John Williams, Executive Editor of Shadow Government Statistics on the Financial Sense Newhs Hour 31 May 2011 speaking about America's day of reckoning hyperinflation and the overall economic situation ."it is not going to be a happy time for the average American the problem is what brought the system to that crisis is still in play , the systemic solvency issue has not been resolved the economy has been restored " John Williams says
Marc Faber: ....I think that if we define a bubble by artificially low interest rates and excessive credit expansion then China has a gigantic bubble , but in the contest of economic development the bubble will burst for sure , I do not know tomorrow or in three weeks or in three months and when it burst they will also be also world champions in money printing they will be exactly what Mr Bernanke has done and so I would rather bet that eventually the RMB could weaken against the US Dollar that's why I am not so bearish about the US Dollar right now , I think among the sick currencies it may be OK for the time being ...when the Chinese bubble burst they'll have a recession but as you know the US economic history 1800 to today how many recessions you had ? the civil war world war one depression world war two and the country still kept on drawing and the same could happen in China ...but I mean I go along with Jim (Chanos?) and I think it's a gigantic bubble and it will burst ...and this will have a huge impact on the rest of Asia on Australia Canada Brazil , the resource producers ...in Bloomberg TV
Marc Faber : "The absolute level of interest rates doesnt tell you whether there is tightening or not. In China, they increased the interest rates over the several times. But with inflation running at between 8-10% per annum and the deposit rate at 3.25%, money is losing its purchasing power if you keep it on deposit," "In US, you will have a similar process. One day they will increase it by a quarter of percent but what does it mean when commodity prices are going through the roof, energy prices are going up, health costs are going up, insurance premiums are going up, everything is going up. Only at the Federal Reserves is there no inflation."
Marc Faber : ...I am not worried about Greece and Spain , because they will have to restructure anyway they're basically bust , but the ECBs like the FED will continue to inject liquidity into the system and I mean it's hard to believe that the Euro is an even worse currency than the US dollar because both are sick , I mean extremely sick terminally sick , but my concern is a geopolitical issue I think what is happening in Libya has waken up the Chinese , because the Chinese they used to get 60 percent of Libyan Oil production they must realize that the allied invasion of Libya is directed against their expansion in Africa and that's how far they will let it go if say the west at some stage attacks Pakistan which is a very close ally of China then the Chinese will also take measures ....in Bloomberg TV
Matt Taibbi : The Big Banks will be ripping off people again Maddof ran his ponzi scheme for a long time . People had to know what he was up to . People must of been paid great sums of hush money . Thats what the banker bail-out was , hush money .here are no consequences for Obama's deceptions either. America is not a democracy. Let's get that straight. This is fascism at work.END THE FEDERAL RESERVE.....ABOLISH THE IRS.....RESTORE THE REPUBLIC
No our politicians are NOT isolated. Our politicians DO SEE what's going on.
Our politicians are corrupt. Our politicians are effectively owned by banks and the rich. They will never regulate banks / credit cards / insurance / oil company prices / medicine / pharmaceuticals / .... or anything else that represents big business.They laugh while we suffer. They get rich from your loss. They profit from war. They steal and are protected. They get bailouts, we lose our homes. They rule the media, the banks, the government. They own you.Greedy bankers,corporate thieves,corrupt politicians,business man that commit envronmental crimes...We will never be free during these kind walk free on the world, TO LIVE FOREVER IN JAIL thats what they deserve and need to happen...
Marc Faber : ...well I think that Quantitative Easing number two will come to an end , and the FED will then wait for a while and the moment the markets are down say the S&P is down 20 percent so you will have have QE3 , QE4 and so forth , ..no doubt , no doubt that and also I believe that the fiscal deficit will not come down it will rather increase going forward ....If you look at the markets internals many stocks are already down 20 percent some are already down 30 percent the market the indices do not reflect what has been happening within the market because you have within the indices a few stocks that have been lad-reds before like Johnson & Johnson Proctor & Gamble they are now kind of supporting the market but individual stocks a lot of them are down substantially already ....in Bloomberg TV interview May 26 2011
Dr Marc Faber asked by Carol Massar of Bloomberg TV in New York 25 May 2011 about what we are seeing in equities right now ? Marc Faber: "...well I think we had huge move (in equities) from march 2009 lows and then we made an intermediate peak in April 2010 and then we had a big correction in July first 2010 and since then the S&P rose from 1010 to a peak of 1370 the other day and so basically we had from the low in last July a rise of 35 percent and I think we need a correction period for these markets and we need a shake out both for commodities and for equities , and I think , people always ask why is the market is going up and why is the market going down and frequently you will know later on , I happen to think that the global economy is slowing down meaningfully at the present time and that earnings estimates are by in large too optimistic and that we will also have significant geopolitical problems in the world "
Marc Faber : "...we had a huge run in asset prices , from the lows in March 2009 until recently , I do not think they will continue to go up a lot , I rather think that QE2 will come to an end that we will have a correction and then we will have more money printing but it may not help the economy at all "
"...I think what will happen is that these deficits will stay very high and that they will lead to very high inflation rates most likely hyperinflation not tomorrow but over time , all I can say is I travel a lot and I am surprised that the US can publish a consumer price index of two percent when everything I see is up significantly in price not a little bit , significantly and so I think here the rate of inflation has to be closer between 5 and 10 percent ,in my opinion closer to ten percent than five percent ,and elsewhere I also see prices going up substantially and so the potential for high inflation is actually there ....."
May 25 (Bloomberg) Marc Faber : ..recession in China could be a technical recession , if you go and slow down from a growth rate of say ten percent to a growth rate of three percent then there is a recession , also I do not believe in the growth rate that China publishes , because if you had adjusted nominal GDP for the true rate of inflation then real growth is of course much slower , you know I want to tell you something that disturbs me in all emerging economies and in many other developed economies , from my taste , in front of far too many luxury hotels there are far too many Ferraris, Maseratis, Bentleys... I see a boom everywhere, except for the working class, except for the lower, middle class. But among the well to do people the wealth that is floating around and the prices you pay for high end properties is incredible, and I think that will come to an end, and a lot of people will lose a lot of money... I was in La Jolla, Laguna Beach, Newport Beach, I was in front of a restaurant smoking and I've never seen so many Ferraris, Maseratis, Bentleys and fancy cars anywhere in the world, and this is in America. I am not saying this is wrong, but there is an opulence among a small group of people that is huge when there are lots of people that are struggling. This gives me a bad feeling because I've seen so many emerging economies when they were booming, that was the time to get out." Marc Faber told Bloomberg
May 25 (Bloomberg) Marc Faber : ..recession in China could be a technical recession , if you go and slow down from a growth rate of say ten percent to a growth rate of three percent then there is a recession , also I do not believe in the growth rate that China publishes , because if you had adjusted nominal GDP for the true rate of inflation then real growth is of course much slower , you know I want to tell you something that disturbs me in all emerging economies and in many other developed economies , from my taste in front of luxury hotels there are far too many Ferraries and Maseraties and Bentleys and this is not a good sign , you should see depression when conditions are depressed . I see a boom everywhere except for the working class and except for the lower middle class , but among the well-to-do people the wealth that is floating around and the prices you pay for high end properties is incredible and I think that will come to an end and a lot of people will lose a lot of money and so I am ultra careful at the present time ....." Marc Faber interviewed by Bloomberg TV May 25 2011 : Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for China's economy. Faber also discusses the U.S. economy and budget deficit, and his investment strategy
William K Black's Theory of Corporate Fraud . former banking regulator William K. Black speaks about rackets and fraud in the financial sector.
William K. Black, says Wall Street is already been breaking current rules.The fraudulent CEOs looted with impunity, were left in power, and were granted their fondest wish when Congress, at the behest of the Chamber of Commerce, Chairman Bernanke, and the bankers' trade associations, successfully extorted the professional Financial Accounting Standards Board (FASB) to turn the accounting rules into a farce.
Marc Faber : ..."I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it.For the investor, the question is: How do I navigate through this complete disaster that is going to unfold? And I think if you look at different asset classes -real estate, equities,bonds, cash, precious metals– I suppose that you have to be diversified. I think real estate in the U.S. may go down another 10% or so, or even 15%, but I am always telling people, if you can buy the piece of land or the house you like, what do you actually care if it does down another 10%? If everything I bought in my life had only gone down 10-15%, I would be very rich, because a lot of things became worthless, especially loans to friends, and bonds, and so forth.Look at the history, for example, of Germany, for the last 100 years. They had World War I. They had the hyper-inflation in World War II. The bond-holders got wiped out three times. If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something. You were not wiped out. I think that in equities you will be better off because you have an ownership in a company,than by being the lenders to companies, and the lenders, especially, to governments " In an interview with MacAlavany
According to Matt Taibbi - journalist, author and contributing editor to Rolling Stone magazine , Wall Street executives from Goldman Sachs should be plucked from the board room and thrown into court. If Roger Clemens and Martha Stewart are brought before juries for lying, why shouldn't the same happen to the men who are responsible for the state of the US dollar? Wall Street is a direct threat to the national security of America, says Taibbi, and he fears that the country's economy is in danger of going completely corrupt.Another interesting connection between Goldman Sachs and Greece: Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules. At some point the so-called cross currency swaps will mature, and swell the country's already bloated deficit.
In a recent interview with David McAlavany Dr. Marc Faber answered this question about inflation David McAlavany: It seems like perhaps one of the best strategies that they have to employ is a manipulation of the CPI numbers so that people assume that real-world inflation is 2 to2½%, while running at a 5% rate, essentially cutting the debts in half over a long enough period of time. If real-world inflation is, as John Williams of Shadow Stats has said,closer to 8%, then we are alleviating a lot of our existing stock of debt, at a rapid rate. Marc Faber : Correct. But you understand, you are not really helping the economy, you are impoverishing, let’s say, the honest people who are decent, who have deposits, who save money and keep it in the banking system, who simply do not want to speculate. So, it is a tax on people’s savings, and it is a very vicious tax, because it is not so obvious to them,but it will become obvious one day, when with their money they can buy less and less. In other words, the purchasing power of money goes down. That is why I am telling everyone, if you already own cash, consider gold and silver to be a component of your cash portfolio, and own some of it, because the government can appropriate it, but otherwise they cannot fiddle around with it in terms of increasing the supply.
Economics Nobel Prize Joseph Stiglitzsays that the bailouts were bailouts for the lenders the big banks , a more political integration was needed in order to make the Euro work he said optimistically the Euro was an unfinished project and there will be ultimately a crisis , he claims that many America economists and commentators expected a crisis to occur in Europe with the Euro. He outlines the two conceptions about how the Euro failed. The only way to save the Euro is to create a real commitment to make sure the failing economies can re-pay their debts.
Joseph E. Stiglitz Bio : Joseph E. Stiglitz is University Professor at Columbia University, the winner of the 2001 Nobel Memorial Prize in Economics, and a lead author of the 1995 IPCC report, which shared the 2007 Nobel Peace Prize. He was chairman of the U.S. Council of Economic Advisors under President Clinton, and chief economist and senior vice president of the World Bank for 1997-2000.
Stiglitz received the John Bates Clark Medal, awarded biennially to the American economist under 40 who has made the most significant contribution to the subject. He was a Fulbright Scholar at Cambridge University, held the Drummond Professorship at All Souls College Oxford, and has also taught at M.I.T, Yale, Stanford, and Princeton. He is the author most recently of Freefall: America, Free Markets, and the Sinking of the Global Economy.
The European Nations need their Sovereignty back and to get away from the bankers .Excellent discussion. Pretty humorous responses,by Joseph Stiglitz, with anecdotes from Iceland’s response to the crisis. “We are out of money, but we can pay you in fish.”
“The only people I saw in Iceland who were concerned about the banking crisis were foreign bankers holed up in the local Hilton.”
hey want to be able to economically enslave the population. Its happening before our eyes
Matt Taibbi - journalist, author and contributing editor to Rolling Stone magazine. Matt is right, it is dangerous to assume the attitude of "it's already over, let's not bother going back and stirring up the hornet's nest." By way of the government becoming a lawless entity so has Wall Street - the two are completely 'co-mingled'. We need to take our suffering and outrage to the polls in 2012, mine will be expressed in my vote for RON PAUL, and voting OUT whatever incumbent Representatives up for reelection (because all of mine are traitors).
It is NOT time to move on. These criminals need to be brought to JUSTICE. The crimes of wall street and the city of London have to be answered for. This affected millions of good, honest people who lost everything, while, those who caused it were actually rewarded by being bailed out, and now are back to the level of bonuses they had before the crash. BRING THEM TO JUSTICE .Corporations can spend unlimited amounts on elections due to the Citizens United ruling (Corporate Personhood) which makes Corporatism possible. Ron Paul hasn't made so much as a peep regarding Corporate Personhood. Now someone like Bernie Sanders on the contrary has, even recently calling for a Constitutional amendment that would strike down that ruling.
Puru Saxena, chief executive at Puru Saxena Wealth Management, says the recent sell-off in commodities is a perfect backdrop for QE3.another Quantitative Easing Is On The Way he says the world has selected the Gold as the anti currency he added more and more money will pour into gold and silver the real hard assets
In an interview with ET Now Dr Marc Faber advises the average investor to go for physical gold and silver :" For the typical investor, I would look at precious metals. They are now correcting on the downside, but I do not think there is a huge downside risk. I would recommend investors to gradually accumulate precious metals." he said , and when asked which one of the precious metals he prefers gold or silver he answered " They move in the same direction, and silver is more volatile. Each individual has to decide himself what he prefers - a more volatile commodity or a more steady commodity. I prefer gold for a variety of reasons, but I can see that may be silver will outperform gold in a bull market."
Blankfein is a bigger threat to America than Osama could ever have hoped to be. And the so-called "war on terror" is just a front for American imperialism in the Middle East.According to Rolling Stone's Matt Taibbi, Wall Street executives from Goldman Sachs should be plucked from the board room and thrown into court. If Roger Clemens and Martha Stewart are brought before juries for lying, why shouldn't the same happen to the men who are responsible for the state of the US dollar? Wall Street is a direct threat to the national security of America, says Taibbi, and he fears that the country's economy is in danger of going completely corrupt.
The government is the terrorist and the war is here on the citizen of the USA.and the government needs to move their family to safety be for the sparks fly.patriots wake up its time to protect our country and our rights against a government of wolves that grows more power-hungry with every passing day.Aim at the head of the beast, the privately owned, Federal Reserve Bank. Who prints money out of thin air and charges us interest. Every dollar created is out of debt and triple that everytime you charge something on credit. No Matt Taibbi, Blankfein, Bernanke, and Geitner needs to be taken out. They are committing financial terrorism on the citizens of all western nations, especially here in the states. Too bad, Rolling Stone hasn't done an article on how the Federal Reserve Robs us blind.
According to Rolling Stone's Matt Taibbi , Wall Street executives from Goldman Sachs should be plucked from the board room and thrown in Jail. Great Goldman is going be eliminated they are only part of the problem! Down with the Fed Reserve! I feel that they should be charged with treason for the devastating blow to the american economy, Some of our politicians should be charged along with them for aiding and abetting those crooks. I seriously doubt that any of these crooks will serve any jail time.
Dr Marc Faber answering the question by David McAlavany :
What measures might the Fed and the Treasury employ to defend the bond market as it is so critical to the financing of our deficits and our way of life in America? Marc Faber : I think they do not necessarily want to support the bond market, because the debt issuance is so huge, they almost have to monetize part of the debt. I have read Treasury reports in 2010 by Tim Geithner saying the U.S. government debt increased by more than 2 trillion dollars during that period of time. The deficit, in my opinion, mathematically,cannot come down, because 80% of the budget is mandatory expenditures, in other words, you cannot cut them. Legally, they have to be met.Of the remaining 20%, you can cut a little bit, but not that much, because then services collapse. In my view, the fiscal deficit of the U.S. will stay around 1½ trillion dollars for as far as the eye can see, and maybe even go to 2, or 2½ trillion dollars, and then the interest expenditures on the debt go up. So actually, over time, in my view, unless taxes are increased significantly, and spending is cut significantly, not by a little bit here, a little bit there, the budget will never again be balanced, and that will then necessitate, in time, QE-III, QE-IV, and QE-V. Taxes cannot be increased dramatically, because if you increase them very substantially, we will go straight back into a recession.
John Embry Chief Investment Strategist at Sprott Asset Management discusses the recent correction in the silver price with James Turk, Director of the GoldMoney Foundation: ....I think the rise to the recent $50 peak believe it or not was justified and it is funny when you read the main stream press everybody is talking about bubbles and how big the crash is going to be , they would not seem to understand the fundamentals I think the fundamentals of silver are impeccable , the fact that we are going through a tough crash is not surprising it's a paper driven COMEX sponsored correction and it's to be expected , I mean if you have been involved in silver market as long as we have at Sprott we're used to these things they are not fun but it is another buying opportunity ...
The paper market probably drives the prices most of the time when the physical takes over is when the physical shortage takes place and what's going on right now is very clearly there is a massive short position in the paper market these positions are being protected and in the short run they have a lot of power they can move the market a long way as we see , and we have seen a 20 percent price correction from the high a week ago but this is not atypical and I do not think people should be deeply concerned about it they should be actually thankful that if they do not own silver that they are getting an opportunity to buy some ...
John Embry Chief Investment Strategist at Sprott Asset Management discusses the recent correction in the silver price with James Turk, Director of the GoldMoney Foundation: ....I think the rise to the recent $50 peak believe it or not was justified and it is funny when you read the main stream press everybody is talking about bubbles and how big the crash is going to be , they would not seem to understand the fundamentals I think the fundamentals of silver are impeccable , the fact that we are going through a tough crash is not surprising it's a paper driven COMEX sponsored correction and it's to be expected , I mean if you have been involved in silver market as long as we have at Sprott we're used to these things they are not fun but it is another buying opportunity ...
The paper market probably drives the prices most of the time when the physical takes over is when the physical shortage takes place and what's going on right now is very clearly there is a massive short position in the paper market these positions are being protected and in the short run they have a lot of power they can move the market a long way as we see , and we have seen a 20 percent price correction from the high a week ago but this is not atypical and I do not think people should be deeply concerned about it they should be actually thankful that if they do not own silver that they are getting an opportunity to buy some ...
John Embry Chief Investment Strategist at Sprott Asset Management discusses with GoldMoney Foundation Director James Turk the worsening fiscal position of the US government with GoldMoney Foundation Director James Turk. In John's view, America is likely heading for hyperinflation thanks to the current fiscal policies of the Federal Reserve.: I do I look at things mathematically he says , when I look at the budget deficit for example you reach the stage now where expenditures are twice as much as revenues , they are taking in less than 50 percent of what they're spending anytime you seen that in history that mean you by pass the point of no return so I find these debates of how much spending and cuts they gonna have or tax rise or sort of deals budget deficit problems kinda factious because I think they have reach the state in which they can do nothing but monetize to debt because they can't crack it - U.S. Dollar on Death Row
A rare look inside the secretive world "high-frequency trading," a controversial technique the SEC is scrutinizing in which computers can make thousands of stock trades in less than a second .The high frequency trading algorithms can also -manipulate- the market (predatory algorithms are one example). The argument for liquidity doesn't make complete sense : you only need millisecond liquidity for the high frequency traders! The exchanges already have circuit breakers (suspend trading if stock loses 10% in 15 minutes), why not another rule that limits the advantage and potential for manipulation by HFT: impose a 20 millisecond delay on all transactions! High frequency trading adds no value to the market, its practitioners produce nothing. Therefore, I propose taxing each of these transactions (that number in the thousands) 5 cents. This could take a big dent out of the deficit
Quants are the math wizards and computer programmers in the engine room of our global financial system who designed the financial products that almost crashed Wall st. The credit crunch has shown how the global financial system has become increasingly dependent on mathematical models trying to quantify human (economic) behavior. Now the quants are at the heart of yet another technological revolution in finance: trading at the speed of light.
NYSE director: "most investors don't care about pennies in stock price"?! that's so ABSURD! it's obvious that someone is losing money to these money-sucking parasites! why is the NYSE director defending them? b/c he's renting those expensive trading machines to them!? such an obvious conflict of interest
I think US Congress need set up new rule for “High Frequency Trading Law” as well as monitors and watchdog on them.I also think that Investors@shareholders, and American people need to know more about how of inside “High Frequency Trading Firm Works..?
Bill Gross, founder and co-CIO of Pimco, explains there is a misconception that Pimco is short US Treasuries. Investors can find pristine balance sheets in countries like Canada, he adds.he discusses discuss the bond market, the U.S. deficit and Greece being the top candidate for default in Europe.
Rolling Stone journalist, Matt Taibbi discusses the latest developments in the Goldman Sachs corruption trial. Why banksters never go to jail ???? Is Goldman Sachs Above The Law ? Obviously, blatantly, sadly, and obviously so Goldman Sachs was caught but it is still above the law . Goldman and JP Morgan own the US Government . Both political parties are protecting these criminals. That is the first thing we need to understand.These banks should have been nationalized. Of course then the Republicans would have called Obama a communist. Deregulation allowed this theft. Republican legislators are now trying to roll back the meager new Dodd-Frank protections. These new regulations didn't go nearly far enough. And they are also trying to de-fund the new Financial Consumer Protection Agency.
Since 2008, Obama took from Corporations & Lobbyists....
Famed economist and strategist David Rosenberg from Gluskin Sheff & Associates Inc in Toronto on the Financial Sense Newshour 13 May 2011 with Jim Puplava to discuss the US and global economic environment , Inflation and deflation trends. .The trend line in commodities is up says David Rosenberg if China is in a Ponzi scheme that implodes I imagine that will have an impact on demand ...as far as I can see home prices are deflating , the food and fuel prices are inflating but the service sector is in a deflation trend, so we have inflation in some areas of the economy while at the same time we have deflation in others but according to David Deflation is the major trend
John Williams of Shadow Stats o the real figures on unemployment the GDP the Inflation the consumer price index and the overall US economy , John Williams who is an independent economist not funded by any government agency , his figures are different from the official figures that the US government shows publicly....
Rolling Stone journalist, Matt Taibbi joins Thom to discuss the latest developments in the Goldman Sachs corruption trial. Why banksters never go to jail ????
report shows that investment bank Goldman Sachs should face criminal charges.Rolling Stone - The People vs. Goldman Sachs A Senate committee has laid out the evidence. Now the Justice Department should bring criminal charges
By Matt Taibbi http://www.rollingstone.com/politics/news/the-people-vs-goldman-sachs-20110511
Marc Faber: there have always been deficit reduction plans and none of them was kept because of politics and because of the economic situation I think may be may be you can cut the deficit from say one and half trillion dollars down to one point four trillion by a hundred billion dollars or so ,but they argued now for almost six months to cut the deficit or reduce the deficit by something like forty billion dollars ...what does it matter 40 billion dollars on one and half trillion dollars ....in CNBC
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.
The Fed is Bluffing says Peter Schiff
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Peter Schiff on tapering: ‘the Fed is bluffing’ “I think we need a much
bigger pullback to put...
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Jim Rogers Joins Board of Directors of FAB Universal
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