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
Still, the ongoing shifting balance of economic power from industrialized countries to emerging economies is building up geopolitical tensions, especially in the Middle East and Central Asia, he said. All the West needs to do to contain China is seize control of oil supplies, but China and the countries dependent on oil imports would not allow that for the sake of self-preservation, Faber added.- in www.taipeitimes.com
“Don’t believe China’s consumer price index stands only at 5 percent,” . “The truth is somewhere between 12 percent and 15 percent ... The real-estate bubble is so evident that Chinese property shares are very weak as the volume of real-estate transactions goes down and prices fall.” - in www.taipeitimes.com
money printing has encouraged speculation on commodities whose prices have gone up faster than real demand in recent years. “Some people will benefit from money printing that deflates the purchasing power of currency ... but the middle and lower--income classes are being hurt,” - in www.taipeitimes.com
That would forestall the crisis rather than solve it, keeping prices elevated for assets like stocks, real estate in some areas and precious metal, Dr. Marc Faber said yesterday in Taipei.Loose monetary policies, including low interest rates, intended as a short-term fix, can have unintended consequences later, he added - in www.taipeitimes.com
Marc Faber : Sovereign debt default throughout history has been very common for centuries , sovereign states have defaulted on their obligations , usually it happens because they borrowed too much and then just they can't pay and they inflate and things do not turn out well and then they default like Latin America in the 80s and 90s many countries defaulted , now I believe that the next country that is very vulnerable would be say Japan or the United States and also in Europe within the EU we have the so called PIIGS in other words Portugal Italy Ireland Greece and Spain these are countries that are quite vulnerable ...
"Everybody has a say in how societies should be structured, but over time, it becomes very polarized and it moves into the hands of powerful business interests, and also interest groups like the military complex, or say the welfare recipients and so forth,"
"So you end up with kind of on the one hand a tyranny of the masses where you distribute all kinds of goodies to people. Like in America roughly 50% of the population gets a handout one way or the other from the government. So by continuing to support these people, you get their votes. "And at the other side of the spectrum, you have the people that pay the tax, the big corporations, and the well-to-do people, and they also want to maintain their interests, which is natural." And so you have a completely dysfunctional political system
"We're not going to get out of a recession by saying spend, spend, spend. That is wrong!"
"The lack of saving is the problem of the United States."
- in Bloomberg
the world’s bill for oil went from $250 billion in 1998 to $2 trillion in 2006 before doubling again by 2008 as the Fed started cutting rates towards zero. - at World Commodities Week in London
adding in the unfunded liabilities of Medicare et al. would mean extending the chart up to “the fifth floor of this building”.
. The gap between federal spending (more than 70% of it mandatory) and taxation means the U.S. government’s debt will double in the next five to 10 years. - at World Commodities Week in London
"I think that stocks may still continue to go up, and I would rather own equities than government bonds for the next 10 years." - in CNBC
Marc Faber : well, I don't know what other people think but what I think will happen eventually and there are so many contradictory statements coming out that nobody really knows ,But eventually the same will happen as i the United States the ECB will print money one way or the other and the debts that essentially should be written down to a realistic value will continue to be carried on the books of banks at unrealistic values so the end crisis will be postponed until the sovereigns go bankrupt.
. "I think that stocks may still continue to go up, and I would rather own equities than government bonds for the next 10 years."
it will need a 90 percent writedown, but that’s not going to happen. What will probably happen is a 50 percent write-down. - Marc Faber said in an interview with Bloomberg today in Zurich today. “I
it would burst — now or in three years? — but it’s unsustainable. What’s more, foreigners should beware investing in China’s ongoing construction boom. Faber pointed to virtually all U.S. canal and railroad companies going bust in the 19th century, ruining many a foreign investor but leaving North America with an enviable set of infrastructure. He said the Chinese don’t issue shares in companies to “enrich foreigners” but to “impoverish foreigners.” If a foreigner wants to make money in China, Faber said, they should go work there. - In the WSJ
if you double someone’s income from $1 million to $2 million, their spending on raw materials “except maybe cocaine” doesn’t rise. Not so for someone on a few thousand dollars a year. They buy cars and the other trappings of middle-class living. - Marc Faber said at World Commodities Week in London on Tuesday morning - via the Wall street journal
