Marc Faber : The investment property market in China is a complete disaster

The investment property market in China "is a complete disaster," . "But a disaster can be postponed, and they can transfer the debts to the government." Marc Faber, publisher of Gloom Boom & Doom Report, said at the CFA Institute seminar - in The Chicago Tribune

Marc Faber : I am not a great sympathizer of the tea party movement because I think they are too intolerant

Marc Faber : I am not a great sympathizer of the tea party movement because I think they are too intolerant , look in Asia abortion is never discussed , it is not a subject that is of importance we believe it is up to the individual to decide and take personal responsibility for his life it has its disadvantages but it has many advantages , I have lived in Asia since 1973 , I think we don't have democracies in the sense of the western world but the people have much more freedom - in CNBC

Marc Faber : in America they should fire half the government including the president

Marc Faber : whether a country pays healthcare or not does not really matter because the Chinese citizens themselves put money aside that's why savings rate is high for their retirement for their healthcare for for their social security , the problem in the western world is that people set there and say Papa government will take care of me and everything , they have have abandoned personal responsibility for their actions , everything is insured , I live in Thailand I do not have any insurances If something goes wrong I have to pay myself and that's why I put reserves on the side and I pay low taxes , and so it is a different system you cannot just condemn China because they do not have healthcare that is run by the government lucky they do not have that , that's what should happen in America they should cut government expenditure precisely fifty percent and fire half the government including the president - in CNBC

Marc Faber : Gold is still Inexpensive

Marc Faber : I have looked at the government debt in the mid 1980s and I looked at the monetary base in the mid 1980s then I compared to an average Gold price of the 80s and 90s , I can tell you as of today the Gold price is probably cheaper than it was ten years ago although in nominal terms it is up 4 , 5 times . But compared to the monetary base and compared to the government debt and compared to the increase in wealth in the world and especially compared to the increase in international reserves , the FOREX reserves have gone from the mid 1990s from a trillion dollars to ten trillion dollars but the gold price has not gone up ten times , so I think the gold price is low , having said that we had recently a little bit oif euphoria in the gold market and a correction is overdue may be ten percent , I think if the gold price drops a 100 , 150 dollars there will be a lot of dires coming in including myself  - in CNBC Aug 2nd 2011

Marc Faber CNBC latest Interview - 02 Aug 2011

Marc Faber  : "I think this is a huge risk and it is a much larger risk for the global economy than it is for the US , because the US is no more a large commodity buyer China is , and If Chinese growth really slows down or if they have a crash as some analyst say they may have , then it obviously will impact the economies of countries like Australia the middle east Brazil Canada and so forth and of course also the property market of Vancouver Hong Kong Singapore Sydney and then it will back fire in the sense that these economies that produce commodities are falling commodity prices they'll buy less goods from China , so it could trigger a vicious circle on the downside and I would say there is a fairly good chance that this could happen,This would really be something that the world central bankers wouldn't be able to help with printing money , they may be able to print money but it wouldn't really help the real economy it may help the financial economy to support equity prices "
"I do not think it will be a trade war , I believe and that's why I am ultra bearish about everything , that being ultra bearish about everything I think you better off in equities than in bond or in cash probably the best will be in precious metals , but basically I see that ten years ago a huge shift in the balance of the economic power begun from the western world notable from the US and western Europe to Asia and emerging economies , we have today in the goods market I am not talking about services because services are very difficult to measure but in the goods market the emerging economies are much much larger than western Europe and the US even combined , so this shift in the balance of economic power to emerging economies is accompanied by a shift in political and military power and that the west will not just set there and do nothing , I mean the Libyan expedition is the first shot , I think the western world want to control China by controlling the oil supplies from the middle east and then it will come to war and in war times the one thing you do not want to is in the US government debt bonds equities will do OK and precious metals and some commodities will do very well but I would prepare for the worst but when you think it is true in the worse scenario you do not want to be in Cash US Dollars and in the US Government bonds

Marc Faber, managing director, editor and publisher at The Gloom Boom & Doom Report told CNBC. "This would be really something the world's central bankers wouldn't be able to help with printing money,"

Marc Faber : The Bear Market Is Starting

"The bear market is starting. When you compare equities to bonds and cash I don't think equities are very positive,"
"The Treasury market is telling you that the economy is in recession," "So if the bond market is telling you that the economies of the Western world are weakening, but at the same time the stock market is still relatively high, I think the stock market is vulnerable." Marc Faber told CNBC in an interview
"The politicians are all useless individuals. Nobody is reducing the problems in the US or Europe, just putting on a band aid and postponing the problems endlessly," he added
"Some analysts think that there's a chance economic data will surprise on the upside but I think, if anything, it will be on the downside," Faber added.

Bill Fleckenstein : This is a political theater

Jerry Robinson Interview with Bill Fleckenstein - A Hedge Fund Manager Speaks Out - 07/30/11



Bill Fleckenstein : I think that there will be a deal , and even if there won't be a deal there will not be a default on August the 2nd because there are other things that could be done , This is a political theater we have seen it many many times , it is a political event not to say that we do not have serious problems and not to say that leverage to this can be used to help force the members of congress who are bought and paid for by the lobbyists to do something right , but mostly this is about political theater not about trying to get anything done , sad to say

Marc Faber : I sleep well because I have no debt

Marc Faber : ...anybody has different views about how he wants to sleep at night , I sleep well because I have no debt , and I never worry about paying interest on debt and of course I never leverage anything all the properties I own I paid in full and in cash - in The Financial Survival

Marc Faber : I do not think they will default on the debt

"Yes, I think they will somewhere, somehow come to an agreement or they will fiddle around with the debt ceiling or invoke the Constitution whereby the President, in a special situation, can actually increase the debt of the US,"
"Something will have to happen....but, I don't think they will default on the debt," he added.
"It is mind boggling that somebody will buy 10-year U.S. Treasurys at a yield of less than 3%, denominated in US Dollars," Marc Faber told CNBC recently

Marc Faber : Easy monetary policies create greed and bubbles

Marc Faber : Well, basically, easy monetary policies create greed and bubbles. And one of the symptoms of bubbles and investment manias is always the proliferation of fraud, embezzlement and dishonest practices. And we had also, in the US, I mean, basically, I would say Fannie Mae and Freddie Mac were a complete fraud. But of course, the government will never admit that. I think the US government is a complete fraud, with the exception of some decent people. But by and large, it’s a fraud. It’s a Ponzi scheme. And in China, obviously, we have a country that is growing very rapidly. And it’s caught the attention of the world and of relatively unsophisticated people -- dentists, doctors, whatever it is, professional. They think we have to buy some Chinese companies because China is growing very rapidly. And so where there is demand, the supply comes in. A lot of fraud companies are listed in the US and elsewhere. And then they basically are revealed as being fraudulent. This is only natural. But I would say when people discuss China -- is a bubble or not a bubble -- the fact that there are so many fraud companies in China would point out to me or show me that there is a bubble, very clearly. Latest money printing by Bernanke has basically produced not necessarily a bubble in the US, but it’s produced a weak US dollar, which is a symptom of inflation. And it’s produced bubbles elsewhere in the world.

Marc Faber : America has many, many good sides It is the government that is horrible and, in particular, the present one.

Marc Faber : Well, ... it’s very important to laugh a lot in life. And I have to say, in Southern California, I was with a few friends and we just giggled the whole time. We had a great time. And this is also the good, you know, in America you can’t say all is bad. The good part of America, some people are very nice. Whenever I go, I was recently actually is very funny. I was in America, I had to take four flights. All the four flights were delayed and as a result, I missed two connections. I had to sleep at the airport in Chicago, to sleep to the airport in Kennedy, in Jamaica. There you go. And these are places that airlines, they give you a hotel -- of course, not the luxurious Four Seasons type of hotel. But then you go to these local bars and to where it’s very funny. You meet a lot of people and you see the true America. All the people are very friendly and conversant. It has many, many good sides, America. It’s the government that is horrible and, in particular, the present one.  - in Financial Sense News Hour  Click Here to listen to the whole interview >>>>>

Marc Faber : Gold is nowhere near a bubble

Marc Faber : Well, ...... in the course of my life, I think that if I followed what the Jews are doing, you’re usually on the side of the winners in terms of money. They’re very smart at making money. And I have numerous Jewish friends that have either like eighty or a hundred percent of their money in gold, silver, or gold/silver mines and so forth. And I have other Jewish friends that have between thirty and fifty percent of their money in gold and silver. So I personally have less. I have like now maybe twenty percent of my money in gold and silver and in mining stock. But on any meaningful decline, say if gold, and we can’t rule that out and I’m saying that in every newsletter I write -- a correction can occur that is meaningful. Like gold started its bull market in 1971. And it reached a peak in ’74 of a hundred ninety seven dollars an ounce. And then between December ’74 and August ’76, at the time the Dow Jones went up very strongly because Dow Jones bottomed out in the bear market of ’73, ’74, in December ’74. But during that time of stocks going up, ’74 to ’76, gold went down by more than forty percent -- from hundred ninety seven dollars an ounce to hundred four dollars an ounce. There’s a big, big correction. But then gold went up eight times. And I’m saying, you know, you buy gold today -- I don’t know, maybe it goes down a hundred dollars. Maybe it goes down two hundred dollars. But looking at all the factors we discussed, I don’t believe that we are in a bubble stage. Because I lived through the last bubble in the late seventies. I can tell you, the whole world followed the gold market day and night and traded gold twenty four hours a day like the whole world traded NASDAQ stock twenty four hours a day in ’99 and 2000. That hasn’t happened yet. We don’t have a heavy waiting. We don’t have a heavy kind of euphoria about gold at all. I know so many people, they bought gold, they paid three, four hundred dollars. Where was that thousand, they sold it? They sold it at twelve hundred. And that price has never really corrected, it never goes back. It never goes back. They’re sitting there empty. All I can say, the risk today as an investor is not to own gold, but it’s not to own any gold. If you have no gold at all, I think you’re taking a risk. And my advice is simply every month you put some money aside and you buy a little bit of gold. Depending if you’re very rich, you buy every month a ton. If you’re very poor, you buy every month an ounce or whatever it is, or a gram. But every month, you accumulate. You don’t worry about the price. Look to it and you just buy every month a little bit. And your grandchildren will be very happy about that unless the US government takes it away. That is a possibility with Mr. Bernanke. You just look at him. He’s basically not a particularly honest character.... - in Financial Sense News Hour  Click Here to listen to the whole interview >>>>>

Mark Mobius : No Recession in the US !!!

Mark Mobius, Executive Chairman at Templeton Emerging Markets Group tells us why he does not think there will be a recession in the U.S. , "the consumer is well alive and kicking both in the US and in emerging markets , s I am not too frightened about a problem of a recession in the US " "government is what is killing the enterprise in the US "

Catherine Austin Fitts : we are having a financial coup detat

Catherine Austin Fitts : we have trillion dollars missing from the federal accounts depending who you talk to we have 12 to 27 trillion extended or given to the banks as a gift that's total 12 + 4 = 16 trillion that's more than the total outstanding debt of the country this is not a fiscal crisis this is a political crisis because we are having a financial coup d etat , i other words if you can steal money every year and then say our problem is that we do not have any money , no the problem is not that we do not have any money or that we are not living financially responsible the problem is you're stealing ....

Marc Faber : hyperinflation is an inflation that gets out of hand

Marc Faber : Well, actually, it hasn’t happened yet. But you understand, hyperinflation is an inflation that gets out of hand after a period of relative calm. I mean, in Germany, prices started to increase in, stay in the hyperinflation in 1918 after the war, 1919. And they only really exploded on the upside in ’22, ’23. And the same happened in Argentina, in Latin America. So I’m still wondering where they can happen. And I happen to think that the likelihood has actually increased for the following reason. You know, if you go back to, say, January 1st, 2011, we were all celebrated New Year and a week earlier, we had Christmas. Who would have thought that the Middle East was in the process of blowing up? Who would have thought that NATO countries, that the bankrupt like Italy and not in a much better position like France would go to war against an idiot in Libya? I’m not saying he’s a nice person. I’m saying he’s an unpleasant character. If you went after all the unpleasant characters in the world, you would have to go after like a hundred eighty countries. So even worse than the other one. There’s no reason to be in Libya, no reason whatsoever. It’s a complete madness to fight in Libya. And if you fight, you have to fight to win. But they haven’t won in three months. He’s a man alone. He’s going to be a hero of the Revolution to stand up, whatever he dies of, eventually he’ll be removed but he’s a hero of the Revolution -- a man alone, standing up against the imperialistic, capitalistic, colonialist Western world. And I think what will happen eventually is the US -- if you read papers in the US and study, it’s all about how do we contain China. The Western world knows -- including western Europe and the US -- one way to control China is to control the oil in the Middle East. And if they control the oil in the Middle East, they can switch on the tab or close the tab to China. Because China, Japan, Taiwan, Laos, Korea, Hong Kong, they get ninety five percent of the oil from the Middle East. That is not the case for the US. The largest supplier of oil to the US is Canada and a large supplier is also Mexico and Venezuela and East Africa, Angola, Nigeria. The Chinese are a hundred percent on Middle Eastern oil. And the US and western powers, they will go and destabilize the Middle East and then try to control it. Well, obviously, they can only go this far because first of all, it will take a lot of money. They now, they are engaged in Libya, they’re engaged in Iraq, they’re engaged in Afghanistan. Next station, they have to be engaged in Pakistan, which is gradually shifting its alliance to China away from the US. Now, when the US went into World War II, debt to GDP was a hundred forty percent and they didn’t have unfunded liability for Medicare, Medicaid and Medicare. Now they have the unfunded liabilities and they have debt to GDP of three hundred seventy nine percent officially. But with the unfunded liability something like eight hundred percent. They’re not in a position to finance the war unless they print money. And so I think the geopolitical picture will eventually lead, in my opinion, to much higher inflation rates than what we’re seeing now.
And by the way, I think the inflation in the US is already much higher than what is being published by the media. And we know now about the media since Mr. Murdock is the largest media machinate. And since he, for sure, because I know some people who used to be in leading positions at News Corp in Asia -- he calls them every day. He checks everything that they do. He knew about the hacking in Britain for sure. And he sanctioned it.But this big business. Big business is dirty. But why is it dirty? Because it’s been made dirty by the government.
. - in Financial Sense News Hour  Click Here to listen to the whole interview >>>>>

Marc Faber speaker at Eagles Talent

Dr. Marc Faber was a speaker at Eagles Talent Speakers Bureau in New York , he narrated how he got involved with Wall street and the investment world and particularly how he moved to Asia and stayed there in the 70s : Marc Faber believes that today there are far more opportunities in Asia than there were at that time , back then there was still Mao Tse Dong in China Viet Nam was in war and you could not invest in India and Indonesia did not have a stock market

Marc Faber : the US grossly neglected their infrastructure for the last 20 years.

Marc Faber : "...it’s very difficult to measure economic growth, very difficult to measure prosperity. But all I can say -- when I started to travel the world in the seventies and I went to, say, Latin American countries, to Eastern Europe countries, to Asian countries -- all these countries were way behind the US, way behind the US in every respect. And today, the infrastructure in most of these countries is actually better than in New York, Los Angeles, San Francisco. Also, it’s natural because these countries put their infrastructure in in the last ten, twenty years whereas the US -- and that is another problem that nobody, or very few people, talk about -- the problem of the US is that they grossly neglected their infrastructure for the last twenty years. In other words, they have the same trains, they have to run on the same rail track and that hasn’t been modernized by and large. They have the same subways that they had fifty years ago and so forth. And much too little as the percent of the economy has been invested. It’s all been spent. Consumption. And that doesn’t create wealth. What you consume, what you eat is gone. What you use in gasoline and burn is gone unless it’s used for running factories that produce something. So basically, the US economic policy, it’s not just a monetary problem. But the entire economic policies have been to perpetuate an American dream and live beyond means for the last twenty to thirty years. And that’s just not realistic. It was built on borrowing more and more to offset the declining income in real terms -- you know, those inflation adjusted terms. And now, the power of to borrow more is gone...."  . - in Financial Sense News Hour  Click Here to listen to the whole interview >>>>>

Marc Faber : US and Europe have become Police States

Marc Faber : Well, first of all, I grew up in the fifties and sixties. I was born in ’46 so in the late fifties, I was, say, twelve to fourteen years old. And I have to say, in general, we were much more free than we are today. We had much more freedom to do things and to do stupid things. Today, everything is controlled -- not only in the US, but also in Europe -- they have become police state where everything is controlled and checked upon either by the police or the IRS or by the PSA or whatever it is. But you are restricted in every movement you make, basically.

Secondly, at the time I grew up, we still had fixed exchange rates. We had Bretton Woods -- in other words, a quasi gold standard, which no longer exists today. And the ability to print money today and to run huge trade and current account deficits is much higher today than it was at that time. In ’71 under President Nixon on August 26th, the US went off the gold standard and that led then to the inflation of the seventies and the gold price rising from thirty dollars to eight hundred fifty dollars. - in Financial Sense News Hour  Click Here to listen to the whole interview >>>>>

Marc Faber : at least in China they use credit to make capital investments not to to buy McDonalds hamburgers

Marc Faber : We have a credit bubble (in China ) . Credit has been growing at an annual rate of 30% and they had a huge stimulus package  . But if you start with rapid credit growth with a debt-to-GDP of 100% is a different story than if you start from a debt-to-GDP of 600% if you include Fannie Mae and Freddie Mac. So yes in China they have excesses, they have mal-investments and oversupply in some industries. But at least in China with credit they do something. They build railroads and roads and bridges and infrastructure and education and so on. In the United States credit is mostly used for consumption and that's a huge difference. Whether you use credit to make capital investments or you use it to buy McDonalds hamburgers or SUVs 'made in China !!!  - in Yahoo Finance Tech Ticker

Marc Faber : the war in Libya is all about containing China

Marc Faber : well actually it has not happened yet , but you understand hyperinflation is an inflation that gets out of hand after a period of relative calm I mean in Germany prices started to increase in 1918 after after the war in 1919 and it only really exploded on the upside in 1922 1923 and the same happened in Argentina so I am still wondering when it could happen and I happen to think that the likelihood has actually increased for the following reason , you know if you go back say January first 2011 we were all celebrating the new year and a week earlier we had Christmas who would have thought that the middle east was in the process of blowing up who would have thought that a NATO country that are bankrupt like Italy and not in a much better position like France would go to war against an atheist in Libya , I am not saying that he is a a nice person I am saying that he is an unpleasant character , if you want to go after all the unpleasant character in the world you have to go after like 180 countries he is not worse than the other ones , there is no reason to be in Libya no reason whatsoever , it is a complete madness to fight in Libya and if you fight you have to fight to win , but what will happen in three months this man alone is gonna be a hero of the revolution to stand up , eventually he will be removed , but he is a hero of the revolution , a man alone standing up against the imperialistic capitalistic colonialist western world , and I think what will happen eventually if you read the paper in the US it is all about how we contain China , the western world knows including western Europe and the US , one way to control China is to control the oil in the middle east , and if they control the oil in the middle east they can switch on the tap or close the tap to China because China Japan South Korea Hong Kong Tai Wan they get 95 of their oil from the middle east that is not the case for the US , the largest supplier of the oil to the US is Canada and a larger supplier is also Mexico Venezuela West Africa Angola Nigeria , the Chinese are hundred percent dependents on the middle eastern oil , and the US and western powers they will go and destabilize the middle east and then try to control it , but obviously they can only go this far because first of all it will take a lot of money , see now they are engaged in Libya they are engaged in Iraq they are engaged in Afghanistan next station they have to be engaged in Pakistan which is gradually shifting its alliance to China away from the US , now when the US went into World War II debt to GDP was 140 percent and they did not have unfunded liabilities like medicare medicaid , now they have unfunded liabilities and they have debt to GDP 379 percent officially but with unfunded liabilities something like 800 percent they are not in a position to finance the war unless they print money , and so I think the geopolitical picture will eventually lead in my opinion to much higher inflation rates than what we are seeing now , and by the way I think the inflation in the US is already much higher than what it has been published by the media and we know now about the media since Mister Murdoch is the largest media magnate and since he for sure , because I know some people who used to be leading position at Newscorp in Asia he calls them everyday he checks everything that they do he knew about the hacking in Britain for sure , but this is big big business , and big business is dirty but why is it dirty ? because it has been made dirty by the government ..."  - in Financial Sense News Hour  Click Here to listen to the whole interview >>>>>

Marc Faber : do like the Jews Invest in Gold

Marc Faber : I think in the coarse of my life I think if I followed what the Jews are doing you are usually on the side of winners in terms of money they are very smart at making money , I have numerous Jewish friends that have like either 80 or 100 percent of their money in Gold Silver or Gold silver mines and so forth and I have other Jewish friends that have between 30 and 50 percent of their money in Gold and Silver , so I personally have less , I have like now may be 20 percent of my money in Gold and Silver and in mining stocks but on any meaningful decline and I say that in every newsletter I write a correction can occur that is meaningful like Gold started its bull market in 1971 and it reached the peak in 74 of 197 dollars an ounce and then between December 74 and August 76 at the time the Dow Jones went up very strongly , the Dow Jones bottomed out in the bear market of 73 - 74 in December 74 but during that time of stocks going up of 74 - 76 Gold went down by more than 40 percent from 197 dollars an ounce to 104 dollars an ounce , that's a big big correction but then Gold went up 8 times , I am saying you know you buy Gold today I do not know may be it goes down a 100 dollars here it goes down a 200 dollars but looking at all the factors we discussed I do not believe that we are in a bubble stage, , because I have lived through the last bubble in the late 70s I can tell you that the whole world followed the Gold market day and night and traded Gold 24 hours a day like the whole world traded NASDAQ stocks 24 hours a day in 1999 and 2000 that has not happened yet we do not have a heavy weighting we do not have a heavy kind of euphoria about Gold at all , the risk today is not to own Gold but to not to own any Gold , if you have no gold at all I think you are taking a risk , and my advise is simple every month you put some money aside and you buy a little bit of Gold you do not worry about the price fluctuation buy every month a little bit and your grand children will be very happy about that unless the US government takes it away that is a possibility with Mr Bernanke just look at him he particularly not a honest looking character ..."
- in The Financial Sense NewsHour Interview

Marc Faber : Easy monetary policies create greed and bubbles

Marc Faber : ...well basically easy monetary policies create greed and bubbles , and one of the symptoms of bubbles and manias , investors manias is always the proliferation of Fraud , Embezzlement and dishonest practices , we have also in the US , I mean basically I would say Fannie Mae and Freddie Mac were a complete fraud but of course the government will never admit that , I think the US government is a complete fraud with the exception of some decent but by in large it is a fraud it is a Ponzi scheme , - in the FSN interview

Marc Faber : I feel sorry for Mr Bernanke , academically he knows everything but he has no clue about the real world

Marc Faber : we can drop as many dollar bills on the United States , but we do not know where the money will flow to , it flowed into the NASDAQ until March 2000 then it flowed into the housing market until 2006 , 2007 but basically where economic activity was occurring and boosted was outside the US , and the more the US will print money the more in my opinion the dollar will depreciate against some currencies may be not all because say the Euro is certainly not more desirable than the US dollar , it will continue to depreciate against currencies like Gold Silver Platinum and probably Palladium , I mean I feel sorry for Mr Bernanke , because he really does not get it , he does not understand , he is a typical academic , you know a typical academic is a professor in medicine that knows everything about how a patient become sick but does not know how to cut something like a butcher and therefore can't operate on a patient , Mr Bernanke academically he knows everything but he has no clue about the real world no clue whatsoever- in Financial Sense Newshour Inreview 15 July 2011

Marc Faber : Rupert Murdoch knew about the Hacking

Marc Faber : I think the geopolitical picture will eventually lead in mu opinion to much higher inflation rate than what we are seeing now , and by the way I think the inflation in the US is already much higher than what it is being published by the media , and we know now about the media since Mister Murdoch is the largest media magnate and since he for sure , because I know some people who used to be leading position at Newscorp in Asia he calls them everyday he checks everything that they do he knew about the hacking in Britain for sure , but this is big big business , and big business is dirty but why is it dirty ? because it has been made dirty by the government ..."  - in Financial Sense News Hour  Click Here to listen to the whole interview >>>>>

When the Gold Bull Market Turn Into a Gold Mania

Marc Faber "During the gold mania of the late 1970s, the whole world was watching gold day and night" - in The Financial Sense News Hour Interview

Marc Faber : I could not criticize the governments in Asia as I do it in America

Marc Faber : " we have in the east not true democracies but for some funny reason we have a lot of economic freedom it is just that you have to be careful not to step on the government toes in terms of criticizing them too much , I mean the way I criticize Mr Bernanke and the way I criticize Mr Obama for sure I could not do it in China , for sure , and it would be viewed very negatively , see I live in Thailand and I am not here frequently , but if I went really off the government here I think I would have to be somewhat careful , this is still a great quality of the US , no matter what you say against the American leaders whether it is Mr Bush or Mr Obama , criticism is still accepted " - in Financial Sense News Hour 15 July 2011

Marc Faber : The US government bonds are already today junk bonds

Marc Faber - QE3, Inflation, Gold on Financial Sense July 15, 2011



Marc Faber : ...I think the deflationists they also have families they go shopping their families go shopping they pay educational cost they pay healthcare cost insurance cost and they see the fees on local government services increasing then I find it hard to believe that they will endorse the contest of deflation but obviously they may think that the economy may collapse and that as a result of that we may have deflation and that therefore you should buy long term US government bonds and my view is particularly in the deflationist scenario where you would have like Prechter said the Dow Jones below a thousand in that scenario you would not want to be in US government bonds and Cash for the simple reason that in that scenario the fiscal deficit in other words spending would exceed tax revenues even more than if you are actually optimistic about the economy , just consider if the Dow Jones went below a thousand what kind of an economic environment would we be in , we would be in a total credit collapse we would be in a total economic collapse and we would have a complete corporate profit collapse and in a corporate profit collapse and in an economic depression what would you thing happens to tax revenues , they would collapse as well and so the revenues of the treasury would decline very meaningfully and the fiscal deficit which is now running say optimistically said at one and a half trillion if you counted unfunded liabilities that are growing every year proof that the fiscal deficit is more likely two to two and half trillion dollars , but let's say it is one and a half trillion , if that happens the Dow Jones below a thousand corporate profit collapsing and revenues collapsing the fiscal deficit for sure will be two to three trillion dollars and in that environment the quality of credit of the US as was suggested by Moody's yesterday would decline and US government bonds which I think are already today junk bonds would go and yield much more than less than three percent that they are yielding at present time , so particularly in a deflationist scenario you do not want to be in a government bonds "....

David Rosenberg , we are just one small shock wave away of having the economy going back into the recession

David Rosenberg , Gluskin Sheff & Associates saya that It has been a sub-par economic recovery,
"the stock market has actually done much better than i thought it would do because ultimately it will get priced off of corporate earnings and corporate earnings have done phenomenally well. the local economy has done far worse because the other component of the economy called labor income has done poorly. i don't think the stock market can stay divorced from the economy indefinitely." David Rosenberg says "...the small caps are part of the cycle. but the point on the overall recovery depends what your assumption is. my assumption is this was a balance sheet recession that we emerged from. so this was not a classic post-world war ii manufacturing inventory cycle that looks almost like a sign wave. if you look at centuries of data you'll find balance sheets of recession, asset deflation, rising savings rates. it's ultimately very deflationary. what you find is the recovery period tends to be fraught with fragility. it's not normal to have two soft patches this close together barely two years after the recession end. it happens in the context of a balance sheet recession. not in the manufacturing inventory cycle. everything is telling you just how soft the underbelly of the economy is. we're just one small shock wave away of having the economy going back into the recession." he added

Timothy Geithner, The US will not default

Timothy Geithner, Treasury Secretary, Discussing the plans for whether the debt ceiling is not raised " I have spent all day both days in the white house, and there's a lot happening as we try to work with leaders on both sides to bring people together to do something useful for the economy, do something about long term deficits. very important to have the leadership of the republican party definitively take default off the table." says Timothy Geithner " senator McConnell, Mr. Boehner, cantor have each said default is not an option and you saw senator McConnell propose last week a mechanism for making clear that the u.s. will not default. again, we need to make sure we'll do something about a long term deficit. we're still working very hard and the president said last week wants us to work towards the biggest, the largest budget agreement we can. " he added

Marc Faber : The US Will Default By Inflation

Marc Faber : "I don't think the US will default in terms of not paying the interest on its debt. They will though default via a falling dollar as Bernake begins printing more money," - in CNBC

Economist John Williams on the Road to Hyperinflation 2014

John Williams - Financial Sense NewsHour 14 July 2011

John Williams of Shadow stats talks about the road to hyperinflation 2014 and the fake government numbers .Economist of Shadow Government Statistics and shadowstats.com founder John Williams claims government employment and inflation numbers are inaccurate, and economy is shakier than indicated.There is no way we could possibly pay our debt either we raise the taxes or we do not either we cut social security or we do not , we are headed towards a Wiemar Republic type of hyperinflation and a banana republic kind of government ....the whole system is collapsing

Marc Faber - Financial Sense Newshour 15 July 2011

Marc Faber : ...I think the deflationists they also have families they go shopping their families go shopping they pay educational cost they pay healthcare cost insurance cost and they see the fees on local government services increasing then I find it hard to believe that they will endorse the contest of deflation but obviously they may think that the economy may collapse and that as a result of that we may have deflation and that therefore you should buy long term US government bonds and my view is particularly in the deflationist scenario where you would have like Prechter said the Dow Jones below a thousand in that scenario you would not want to be in US government bonds and Cash for the simple reason that in that scenario the fiscal deficit in other words spending would exceed tax revenues even more than if you are actually optimistic about the economy , just consider if the Dow Jones went below a thousand what kind of an economic environment would we be in , we would be in a total credit collapse we would be in a total economic collapse and we would have a complete corporate profit collapse and in a corporate profit collapse and in an economic depression what would you thing happens to tax revenues , they would collapse as well and so the revenues of the treasury would decline very meaningfully and the fiscal deficit which is now running say optimistically said at one and a half trillion if you counted unfunded liabilities that are growing every year proof that the fiscal deficit is more likely two to two and half trillion dollars , but let's say it is one and a half trillion , if that happens the Dow Jones below a thousand corporate profit collapsing and revenues collapsing the fiscal deficit for sure will be two to three trillion dollars and in that environment the quality of credit of the US as was suggested by Moody's yesterday would decline and US government bonds which I think are already today junk bonds would go and yield much more than less than three percent that they are yielding at present time , so particularly in a deflationist scenario you do not want to be in a government bonds "....

Marc Faber : The risk for investors is not to own any Gold

Marc Faber : " ...well basically , I think the risk for investors is not to own any Gold , but obviously it will also fluctuate like the dollar against the Euro moves it moves against the Yen it moves against the Swiss franc and so forth , and we could once have a period where the dollar strengthens somewhat under some conditions but quite frankly I do not see a huge downside risk for Gold let's say may be ten percent or so and I rather see that over the next five to ten years we will have substantially and I have to repeat substantially higher Gold prices or expressed differently substantially lower purchasing power of paper money , and I agree with what was said earlier that say under a rigid monetary system where you have let's say Gold as an anchoring in other words you have some kind of gold standard cash is a riskless asset , but in today's environment of money printing cash at zero interest rate is not a riskless asset it is actually very risky except for brief period of time , period during which asset markets correct on the down side " in CNBC Interview 14 July 2011

Marc Faber : QE3 will be a certainty if the Dow Jones or the S&P drop ten twenty percent

Marc Faber : " I think if the Dow Jones drops say ten , twenty percent from here or the S&P drops by similar amount ten twenty percent QE3 will be a certainty but the question is then whether the market can make a new high , I think we seen the high of the market when the S&P hit 1370 almost two months ago and that is high for the yield will stand that is not make new high " ..."
in CNBC Interview 14 July 2011

Marc Faber CNBC Interview 14 July 2011

Marc Faber : "well basically I do not think they will default in terms of not paying the interest on the government debt but I think that they will default in terms of paying back the debt and the interest with depreciated or worthless dollars as a result of the FED or specifically Mister Bernanke money printing "
"Yes I think they will someway or somehow come to an agreement or they'll fiddle around with the debt ceiling or invoke the constitution whereby the president in special situations can actually increase the debt of the United States , something will happen but I do not think they will default on the debt , but I just like to point out where I disagree with the bonds bulls , the bonds bulls basically built their case around deflation , in a deflationary environment you would have essentially the Dow Jones collapsing corporate profit collapsing the economy performing very badly and in that environment the tax revenues will collapse and so the fiscal deficit instead of staying at this level or even coming down in an optimistic scenario will actually increase and so the quality of the US debt will diminish and actually for me it is mind boggling that somebody will buy a ten year US treasury at a yield of less than 3 percent denominated in US Dollars "




Marc Faber, author and publisher of the Gloom, Boom and Doom report joined CNBC to discuss a potential US default. Bob Parker, Senior Advisor at Credit Suisse and Sarah Hewin at Standard Chartered Bank joined the discussion.

Marc Faber: Time to Buy US Real Estate, but Choose Carefully

Marc Faber : It's Time to Buy US Real Estate, but Choose Carefully ,Marc Faber explains why now may be a good time to pick up some cash-flowing rental property in the United States, but you must buy carefully. He also explains why he buys his own rental properties for all cash, using no leverage. Marc Faber believes that precious metals investors will endure more volatile swings in the short term, but he's still holding his gold and silver as central banks continue to debase currencies.

Bernanke Testimony on Capitol Hill

Federal Reserve chairman Ben Bernanke makes an opening statement on the current state of the economy and his forecast on inflation.
Ben Bernanke :"...i'll begin with the discussion of current economic conditions and outlook and then turn to monetary policy. the u.s. economy has continued to recover and the pace of expansion so far this year has been modest. after increasing in the second half of 2010, real GDP rose at 2% rate in the first quarter of this year and incoming data suggesting that the pace of recovery remains soft in the spring. at the same time, the unemployment rate at the turn of the year has moved back above 9%. in part, the recent weaker than expected economic performance appears to have been the result of several factors that are likely to be temporary. notably, the run-up in prices of energy, especially gasoline and food has reduced purchasing power. the supply chain caused vehicle motor producers to curtail assemblies and limit the availability of some models. looking forward, however, the apparent stabilization in the prices of oil and other commodities should ease the prices on household budgets and vehicle manufacturers report that they are making significant progress in overcoming the part shortages and expect to increase production substantially this summer. in light of these developments, the most recent projections by recent members of the federal reserve board and banks prepared in conjunction with the FOMC meeting in June reflected their assessment of the pace of economic recovery will pick up in coming quarters..."

Marc Faber : my stock portfolios are concentrated in Asia

Marc Faber : ..I suggest that people accumulate Gold , they should not market time the Gold market because we are going to have volatility and so on and so forth , but if I look at the faces of Tim Geithner of Ben Bernanke of Mister Obama and Larry Summers that I will never sell any gold that's for sure , as long as these people are essentially structuring economic policies fiscal and monetary policy and foreign policy no thank you I will keep my Gold ....I will not buy paper money , but I also have stock portfolios but my stock portfolios are concentrated here in Asia I think this year they'll go down in value but I do not feel comfortable holding too much cash because ultimately cash will be worthless - in The Financial Times

Marc Faber on the Debt Ceiling increase in America

Economist Marc Faber publisher of the gloom Boom and Doom report interviewed by Financialsurvivalpod on the debt ceiling in America and what should happen to fix the debt situation : "...well I think the problem is this you have two parties , the democrats they want to spend and the republicans do not want to increase taxation , as an economist I would say that the republicans are probably closer to the right way namely to spend less and to actually lower taxation for everybody , but my argument has always been the best for the US would be to have a flat tax on everybody say 12 or 15 percent and no exceptions no interest rates deductions and so forth and so on and everybody who works has to pay tax and the people that do not work and are on social security or they are on unemployment benefits they should have lower representation in government in other word their words should be diminished " ..."the Democrats will say well we'll cut spending and the spending cuts will come in five years time and the Republicans will say yeah we increase taxation and the tax increase will come in three years time , you perform the problem again ...."

China heading for an economic slowdown

Marc Faber : some countries export more to China than to the US or to other parts of the world such as Australia Brazil and Canada " "

Steve Keen : Bankers have to be kept inside boxes , not let out

Max Keiser interviews Steve Keen, economist and author of the book Debunking Economics. -On the Edge - 07-08-2011
Steve Keen : the bankers make money by creating debt , and if they can persuade us to take more debt than we actually should take on there will be crisis , and the easiest way to persuade us to do that is to start an asset class bubble , when the bubble starts they fund the bubble , they make lots of money because their debt levels rise and they make money on the margin between deposit rates and loan rates times how much debt outstanding , so the more debt there is the better they are , and we were silly enough letting them getting away with it yet again when the Great Depression should have taught us once and for all 'Bankers have to be kept inside boxes , not let out'

Bill Still : Ron Paul is wrong , ending the FED is a diversion

Bill Still : ....for the first time in history we have reached a state of debt saturation , the quantity of debt flooding around in all national money system is so great now that the interest is absolutely killing the economy , and unless Ron Paul addresses that he is not doing us any favors , ending the FED will do absolutely nothing because it is not the FED , The FED is just like the curtain in the wizard of OZ it is hiding the wizard and in this analogy the wizards are the big banks behind the curtain it is not the FED , the FED is just a big fake-out designed to make us think that we the people through our government , the FED is controlling the big banks when in fact it is not the case at all , I grow up in the DC area and in the DC phone book the FED is not listed in the blue government pages it is listed in the white private company pages private corporate pages under the very same page as the Federal Express , it got nothing to do with the government but everybody thinks it has something to do with the government and that is specifically designed to make people think that the FED is ultimately the problem when it is not , it is the big banks and their ability to create money out of nothing that is our problem that's hat we have to fix ...says Bill Still, the producer of the films The Money Masters and The Secret of Oz and the author of the book No More National Debt....ending the FED is a diversion

David Rosenberg Sees Semi-Permanent Hurdles to U.S. Growth

David Rosenberg chief economist at Gluskin Sheff & Associates, Sees `Semi-Permanent' Hurdles to U.S. Growth . He talks to Bloomberg TV about the June U.S. employment report and the outlook for the economy.there is no way that the housing market has bottomed says David Rosemberg , while job growth slows and unemployment rises

Marc Faber : Farmland is still relatively inexpensive

Marc Faber : ...When I came in 1973 to Hong Kong I thought that property prices are very high here compared to say Switzerland and they were very high , and every year basically with few exceptions property prices have continued to go up , I think farmland relatively speaking is not terribly expensive , can there be a set back , yes may be you buy today a farm and you lose 20 percent of your money , but to lose 20 percent of your money is better than to lose everything , so I think that people today investors need to diversify they need to own some real estate they need to own some farmland they need to own some equities some cash and some precious metals - in CNBC

Marc Faber : Central Banks around the world are debasing the value of money

Marc Faber : ...well the thing is this I used to think that he (Ben Bernanke) is not particularly smart , but now I think that he is not particularly honest , and I actually do not pay any attention anymore to what he says I just look at say inflation figures but real inflation figures not the ones that are published by the government and I look at market action , I mean there must be a reason why over the last ten years the price of Gold and Silver are up more than five times it's money printing and the loss of purchasing power of paper money and this is what central banks have been doing not just in the US but also elsewhere- in CNBC

Marc Faber likes Geographical diversification

Marc Faber : I would not put all my money in any emerging economy or in any country. I would have a geographical diversification. I would also have a diversification in assets, some commodities, some equities, some bonds, some cash and some real estate. So I would not put all my money into India to start with. - in ET Now

Marc Faber outlook for the Indian Market

Marc Faber : Markets have peaked out and I think we are in a correction period. We had a huge move in India from the lows in 2009 to the recent highs, and we are coming down now. We may drop another 10-20%, who knows? Longer term I am reasonably positive for the Indian economy or very positive for the Indian economy. But what disturbs me nowadays are less economic factors than geopolitical factors because the friendship between India and America has been renewed and expanded and that is a threat to China and so China is getting closer. They have always been close to Pakistan and that creates a new set of tensions. We could have a lot of volatility in asset markets as a result of geopolitical trends. " - in ET Now 24 June 2011

Asset markets will continue to drift lower for the next 3 months or so

Marc Faber : No further stimulus. We have to qualify that statement. I think they will end QE2 and not tighten monetary conditions, but there could be a relative tightening the way we had it after the end of QE1 until QE2 was announced last August. So for the next three months or so, asset markets will continue to drift lower. Traditionally the month of May is very weak.Also June and then from June on, we have some seasonal strength developing until the end of July, early August and then we have weak September-October months, seasonally speaking. The markets are oversold at the present time. We could re-bounce somewhat from herein to the end of July and then have another ground draft in October-November, but my forecast is very simple. If the S&P were to drop from here by, say, another 10-20%, for sure, for sure you will get QE3. There is no doubt about this.