Marc Faber : I could smell Something is Wrong in China

Dr. Marc Faber delivered a shock- and-awe inducing performance during the The EPCA ( the European Petrochemical Association) 2011 Annual Meeting , castigating the economic and Financial policies of all major western governments, and “Keynesian” economists, and warning that he could “smell something is wrong in China”. He predicted another major economic and Financial meltdown between 2015 and 2020 - at the latest. - via EPCA

Wall Street investment companies have become public companies

The “too big to fail” view of private sector banks and other financial companies has encouraged reckless lending and investment policies among too many financial institutions. This safety net should be removed, Marc Faber argues. Back in the “old days”, Wall Street investment companies were partnerships that risked their own money. But now they have become public companies, which risk other people’s money, and leave governments - and taxpayers - to pick up the pieces when trouble strikes said Dr. Marc Faber during the EPCA annual meeting a couple of days ago

Buy gold and a farm in the country!

During the EPCA presentation when Dr Marc Faber was asked about the remedies he recommends in order to face the impact of another crisis he suggested to "Buy gold and a farm in the country!" - via EPCA

The struggle for energy between the US & China could result in the Middle East going up in flames

During The EPCA Annual Meeting speech Dr Marc Faber expressed concerns about competition for energy resources, with China being pitted against the West, represented primarily by the U.S. “Oil is a big priority for China. But the U.S. could seek to contain China by limiting its access to oil in the Middle East.” He suggested western intervention in Libya can only serve to set alarm bells ringing in China, and pointed to a struggle developing for an overland trade route to the region as China courts Pakistan while the U.S. strengthens ties with India. This is due to the threat the U.S. navy poses to China’s shipping lanes, Faber said. The struggle for energy could result in the Middle East “going up in flames”, he said.
- via EPCA

China is the elephant in the room

China is the elephant in the room, Marc Faber told the EPCA audience . Noting a global shift in the balance of global economic and military power from West to East, he also highlighted the massive increase in China’s share of global commodity consumption. He is skeptical about GDP growth figures for China, suggesting they may be closer to 5% per year than 10%. Faber suggests that recent downward slides in stock markets are more likely to be the result of concerns about China’s economic bubble bursting rather than European woes. “If China grows or contracts by 3%, that translates into a huge impact, particularly in demand for commodities.” Marc Faber says - via EPCA

Marc Faber keynote speaker at The EPCA Annual Meeting

Dr.Marc Faber, gave an evening address and predicted more financial gloom. at The EPCA ( the European Petrochemical Association) Annual Meeting . Marc Faber told the audience to expect another financial crash , 10 years of low-to-no growth , The Middle East in flames and the U.S. and China on a collision course over access to oil in the middle east and beyond ....Marc Faber described Greece as a lost cause and should be allowed to go bankrupt , that Europe is struggling to accommodate a range of very different economies and polities at different stages of development into a single currency .China is the elephant in the room said Marc Faber noting a global shift in the balance of global economic and military power from west to east ....- via EPCA

The universities in Europe are strongly biased towards the Austrian School of Economics

Dr Marc Faber visited recently the Faculty of Economics at the university of Zurich from where he graduated and he talked about his memories and how it was at this university that he got influenced by the Austrian School of Economics thinking : The professors we had were really world class ...I have learned how to write about something you do not know anything about , starting with a paper with no knowledge we have to go ans get knowledge to collect the information and then to write the paper , secondly I think I had some professor that influenced me in my thinking , because in America you have more the American school of economics whereas here in Europe particularly in Zurich we had strong biased towards the Austrian School of Economics that has influenced my thinking greatly ....Click Here to watch the full Interview >>>>

The end crisis will be postponed until the sovereigns go bankrupt

Marc Faber : "The end crisis will be postponed until the sovereigns go bankrupt,"

"They can postpone the end-game endlessly...say another five to 10 years. Each money-printing exercise brings about unintended consequences. These unintended consequences are higher inflation rates than had no money been printed." - in CNBC Interview

I rather own equities than government bonds for the next 10 years

Marc Faber : "When you print money everything goes up at different times, different asset classes,"

"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 interview

Marc Faber : Zurich is the most beautiful and pleasant city in the world

Dr. Marc Faber back in Zurich Switzerland and in the university of Zurich where he studied economics he tells how he got influenced by the Austrian economics in the Zurich University : " well if I could go back in life I I will definitely study again economics , what I have noticed in life is if you are a lawyer or if you are a medical person you do not have the geographical freedom as I had in economics , I can practice economics anywhere in the world in Latin America in the middle East in Asia , and so forth , I could travel a lot , I have seen the entire world as a result of my knowledge in economics and so I would definitely again study economics "
"Zurich is the most beautiful and pleasant city in the world , if the weather is nice it's summer it's a lovely place it has an old city and it has a lake it has the proximity of mountains you can do sports it is relatively small so it is cozy , you can walk from A to B you do not need to take a subway so it is a perfect place so definitely I would come back here ..."

The Chinese bubble will burst eventually

Marc Faber : The Chinese bubble will burst eventually, in three months or in three years; when it happens, it will have devastating consequences for the global economy, - in www.taipeitimes.com

Marc Faber : All the West needs to do to contain China is seize control of oil supplies

Marc Faber : 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, - in www.taipeitimes.com

Marc Faber recommends risk diversification

Marc Faber recommends risk diversification against the current backdrop, but took a dim view of government bond purchases as they would mean trust in the easy monetary policy. Rather, he suggests owning physical gold, equities and Asian real estate that will prove a better defense against inflation. - in www.taipeitimes.com

Greece is bankrupt whether Europe likes to admit it or not

Marc Faber : Greece is bankrupt whether Europe likes to admit it or not, and the European Central Bank will print money to postpone a systematic failure.

Marc Faber : Wall Street is a minority

Marc Faber : Wall Street is a minority, anyone else would have done the same, they use the system but they didn't create the system. The system was created by the lobbyists and by Washington. So they [the protesters] should actually go to Washington and also occupy the Federal Reserve on the way, - in CNBC

Chinese invented paper. They know how to print money

Marc Faber : Chinese invented paper. They know how to print money

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

John Williams - GDP is a nonsense Number

John Williams of the shadow stats on the Financial Sense NewsHour Nov/15/2011 : Third Quarter GDP Numbers Have No Relation to Reality , John believes unemployment hasn’t really recovered from the 2001 Recession.GDP is a nonsense Number , it is a worthless number in terms of having any meaning in terms of the economy heavily politicized very heavily modeled , they use extremly low rates of inflation , that number could easily be negative as wel as positive John Williams of shadow stats says

The real-estate bubble in China is so evident

Marc Faber : The fast-growing economy of China has pushed up its inflationary pressures, with the bubble in the real-estate sector on the brink of bursting,

“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

central banks cannot control where the funds flow

Marc Faber : While central banks can inject fresh funds into the markets, they cannot control where the funds flow,

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

Printing money would forestall the crisis rather than solve it

“A third wave of quantitative easing by the US Federal Reserve is just a matter of time,” Printing money is the way global governments will evade debt crises, such as the one that is gripping Europe,

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

The US market has outperformed the European and Asian markets

Marc Faber : if I look at the volatility we have in the market and the result is actually that the S&P and the NASDAQ are flat for the year where European and Asian markets are down between ten and twenty percent so this year the US market has actually outperformed many other markets and that this out performance may continue for a while because in the US you have guaranteed extremely expansionary monetary policies with zero interest rates staying there essentially for ever because the new thinking at the FED is it will keep interest rates at zero until the unemployment rate drops below 7.5 percent , now this may never happen because as in the middle age when we village idiots we have today a lot of unemployable people so the national unemployment rate may be in modern society around ten percent - in Bloomberg

Market Sell off in 2012

Marc Faber : ...well I think that usually the second half of the year and the first few months of the new year are period of seasonal strength so it won't surprise me seeing the market rallying until February to April and then starting to sell off again in 2012 - in Bloomberg

FEDs interest rates are Negative in Real Terms

Marc Faber : I have a view , my view is nobody knows , because markets now are very volatile partly because interest rates are now at zero percent and in real terms negative which essentially stimulate speculation and in addition we have high frequency trading that leads to very wide swings in the market because the high frequency traders are basically based on models that are momentum like models in other words the market goes up everybody goes long the market goes down everybody goes short and what we had is a peak as I mentioned on May 2nd at 1370 on the S&P and then we went down sharply in late July August and bottomed out on October the 4th at 1074 on the S&P when everybody turned negative and after we had this very sharp rally almost 20 percent and I think this rally may carry on somewhat and that the super bear that think the S&P drops to 400 for the time being it will have to go to hibernation - in Bloomberg

The Equity Market may Rally Another 5 percent or so

Marc Faber : well I think it is going to be very difficult for the market to make a new high above in the case of the S&P May 2 the S&P at 1370 I think there is a lot of supply between this level here between 1260 to around 1350 , so I doubt we will see new highs but it does not mean that the market cannot rally another 5 percent or so

Marc Faber latest Bloomberg Interview - 14 No 2011

Marc Faber : I think (in Europe ) the market was oversold and we are rallying now but basically there is not much cvhange , but I like to say this I think that sooner or later the Europeans specifically the ECB will also have to monetize and therefore the problems can be postponed for a while

Marc Faber : Japan and the US can Default

Marc Faber : I think based on historical precedent it's very likely they will , not tomorrow , and before they do they'll print money like crazy in other words monetize the debt , but eventually I think it is quite clear that the US will default or they can't keep their obligation , say that medicare has to cut down , medicaid cut down social security recipients will get less money or people will have to pay more taxes in either way something will happen - in yahoo Tech Ticker

Marc Faber : the Euro could fall apart

Marc Faber : ...I am not optimistic about the US Dollar but when I look at other currencies they are not much better , I spend a lot of time traveling , I think at the present time actually the price level in the US is reasonable compared to say the Eurozone , and so if there are problems in the Eurozone Greece Spain Portugal and so forth what we could see is weakness in the Euro or may be even the Euro falling apart - in Yahoo Teck Ticker Click Here to watch the Full Interview >>>>

Sovereign debt default is very common throughout history

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 ...

In America roughly 50% of the population gets a handout one way or the other from the government

Marc Faber : "The problem with government is that the original intention of, especially a democracy, is very good,"

"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

The net investments in the US is now negative

Marc Faber : "If you look at net investments in the US, it has gone down for the last 20 years, and it's now negative. In other words, basically the capital stock of America is not being replenished...although it's being replenished somewhere else in the world. At the same time, the policies of the Keynesians have always encouraged spending," - in CNBC

The lack of saving is the problem of the United States

Marc Faber : "If you look at net investments in the US, it has gone down for the last 20 years, and it's now negative. In other words, basically the capital stock of America is not being replenished...although it's being replenished somewhere else in the world. At the same time, the policies of the Keynesians have always encouraged spending,"

"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

Marc Faber : Wir haben eine Blase

Dr. Marc Faber beim DAF 07.11.2011 :Marc Faber zur aktuellen Marktlage und Zukunftsaussichten . Im letzten DAF-Interview hat Börsenguru Marc Faber den Crash an den Aktienmärkten richtig vorhergesehen ,Börsenguru Marc Faber warnt vor Aktieninvestments in China ,"Eine ziemlich gefährliche Situation" ,"Die Wirtschaft in China verlangsamt sich, das ist ganz klar"

Marc Faber : The parasites make a lot of money out of war time

Marc Faber : ...I would imagine that the resolution would be more money printing because that's the easiest thing to do , and over time money printing leads to huge increase in wealth and income inequality whereby the smart operators the rich people the well connected people can make a lot of money , it's like in war time you have the parasites that can make a hell lot of money in war times but it impoverishes eventually the population and the same happens when print money ...you are moving to an environment where there is very high distrust between the population and the government , there is a state within the state and that's the government and people are unhappy and when everything fail through money printing usually the government has to look for someone to blame for the unpleasant economic reality and frequently they easily blame the minority like in Africa the Indians or in Indonesia the Chinese and so forth and when everything fails these countries tend to go to war , and the US is already at war because in war time it is not important to win the war , whether you win or you lose a lot of people make a lot of money out of war time - in an interview with Chris Martenson

WallStreet didnt create the system. The system was created by the lobbyists and by Washington

Marc Faber : "Wall Street is a minority, anyone else would have done the same, they use the system but they didn't create the system. The system was created by the lobbyists and by Washington. So they (the protesters) should actually go to Washington and also occupy the Federal Reserve on the way,"

Marc Faber : The FED Interventions create miss-allocation of capital and bubbles l

Marc Faber : "If there's one institution in the US that consistently and repeatedly messes up everything, the Federal Reserve is that institution." Marc Faber told Chris Martenson , FED Interventions create miss-allocation of capital Dr Faber explains , they (The FED ) also let the bubbles happen , but he added that not everything is the consequences of the FED policies because even under a gold standard there are bubbles inflating , and to be honest this bubble blowing is not just the intention of the Federal Reserve Faber explains , but also Wall street was also encouraging bubbles , the FED is not the only one guilty of easy monetary policies , everybody enjoyed it because everybody was making money during the bull market in equities and in bonds

Marc Faber : I am a great optimist in life

Marc Faber : "I am a great optimist in life; otherwise I would commit suicide in view of the kind of governments we have nowadays." Marc faber told CNBC last week

Marc Faber Investment Strategy The Rule of 25

Marc Faber : The best thing an individual investor can do right now is to hold 25% of his assets in equities, 25% in real estate, 25% in gold, and 25% in cash ,
If equities, real estate, or Gold drop another 10% to 20%, put more cash in.

We had ten miserable years on the S&P

Marc Faber : Well, I think that if you look at say stocks on a ten year space, we are on the S&P say around 1,200 today. And we were at 1,550 in the year 2000, at 1,576 on October 12, 2007. So we had ten miserable years. In Europe, it is even worse. And I think that if you take a long term perspective to buy equities will make you money, but maybe not as much as you expect I think, that the returns for the next five to ten years - okay, one year stocks will be up 30 percent. They are up 100 percent from the lows on March 6, 2009. But, in general, I believe we will have a trading range and, at worse, we could be in a situation like Japan, where the market essentially is still down 70 percent from the highs in 1989.

U.S. monetary policy focuses too much on boosting consumption.

Marc Faber : U.S. monetary policy focuses too much on boosting consumption. This is a short-term fix, but benefits often accrue elsewhere, namely in China, which provides the goods to feed American consumerism. The negative real interest rates and boost to Chinese incomes and investment also push up commodities prices, which then counteracts the stimulative effect for U.S. consumers by acting as a tax on income.

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

the U.S. government debt will double in the next five to 10 years.

Marc Faber : It took the U.S. 200 years to get to a federal debt of $1 trillion in 1980, another six years to get to $2 trillion, and now it’s north of $15 trillion.

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

Stocks Beat Bonds Over Next 10 Years

Marc Faber : "When you print money everything goes up at different times, different asset classes,"

"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

The U.S. monetary policy focuses too much on boosting consumption

Marc Faber : U.S. monetary policy focuses too much on boosting consumption. This is a short-term fix, but benefits often accrue elsewhere, namely in China, which provides the goods to feed American consumerism. The negative real interest rates and boost to Chinese incomes and investment also push up commodities prices, which then counteracts the stimulative effect for U.S. consumers by acting as a tax on income. Mr. Faber calculates 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. - Marc Faber said at World Commodities Week in London on Tuesday morning - via The Wall Street journal Blog

Diversify your asset holdings & where you hold those assets

You should not only diversify your asset holdings, but also diversify where you hold those assets, in case they’re seized by politicians as the welfare state enters its death throes. said Marc Faber who ends with an alarming prediction : “The governments, they’re going to f— you all, that’s for sure.” Marc Faber said at the World Commodities Week in London on Tuesday - via the Wall Street journal

When the Chinese bubble burst it will have devastating consequences for the global economy

Marc Faber : well, I think that the super bulls and super bears will be disappointed that we're in a trading range between 900 on the S&P and say1350, something like this. I don't think we will make a new high above the may 2nd high on the S&P which was 1370 , but I'd like to make the following observation , if you print money in the US it does not mean that it creates bubbles in the US , it can create bubble in your neighboring region , say, Latin America or Asia or it can create bubbles in precious metals or in commodities or in home prices somewhere else in the world or say, for instance, in China. and if the Chinese bubble burst one day which inevitably will happen, maybe not tomorrow but may be in three months,may be in three years, when it happens, it will have devastating consequences for the global economy. - in CNBC -  Click Here to watch the Interview >>>>

I rather own Equities than government Bonds for the next ten years

Marc Faber : well, I think that I am very constructive and a great optimist in life otherwise I would commit suicide in view of the kind of governments we have nowadays because for sure they will take wealth away from the well to do people one way or the other. and from the middle class they will take it away through inflating the economy and lowering the standards of living , the typical household in western Europe in the U.S,. has lower standards of living today than, say, 20, 30 years ago. there's no question about this. and so I think that we are in a very difficult situation and that deleveraging must occur the governments don't want to recognize that. and so the fiscal deficits are out of hand. but it doesn't mean that stocks will go down when you print money. everything goes up at different times, different asset classes. and I think that stocks may still continue to go up and I rather own equities than government bonds for the next ten years. - in CNBC -  Click Here to watch the Interview >>>>

I think Obama has good chance to be re-elected by simply distributing money

Marc Faber : ....Exactly what I mean, I think the governments today are no more representing the interest of the communities but they are defending their personal interests and essentially you can buy votes by voting for people who hand out money such as Mr Obama , I think he has good chance to be re-elected by simply distributing money, 48% of Americans today, they get some kind of government subsidy and the problem is, in Italy, in Greece, in Spain, everywhere, entitlements should be cut now and not in 2026. that will be far too late. but nobody wants to accept the reality. - in CNBC -  Click Here to watch the Interview >>>>

Eventually the hour of truth will happen

Marc Faber : Well before they'll go bankrupt they'll print money and they can print endless money and as long as we have Ben Bernanke and Janet Yellen at the FED they will also print money ,and so they can postpone the end game endlessly, endlessly not, but say for another five to ten years. but each money printing exercise brings about unintended consequences and these unintended consequences are partly higher inflation rates than would have been had no money been printed , I just read today that education cost this year will rise by 8 percent and that you know the typical household cannot afford anymore good education so the students have to get student loans now the student loans almost exceed consumer credit outstanding. so you essentially create more borrowings on top of an over leveraged society and eventually the hour of truth will happen - in CNBC -  Click Here to watch the Interview >>>>

The ECB will print money one way or the other

An outlook on the economy, with Marc Faber, Gloom, Boom and Doom Report editor/publisher.

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.

Marc Faber latest video Interview - CNBC 26 October 2011

Dr Marc Faber The author publisher and editor of the Gloom, Boom & Doom newsletter, in a CNBC interview, gives his outlook on the global economy, Marc Faber says that "When you print money everything goes up at different times, different asset classes,"

. "I think that stocks may still continue to go up, and I would rather own equities than government bonds for the next 10 years."

Marc Faber: Greece is bankrupt & bond investors should have to take losses of 90 percent on their holdings

Greece is bankrupt, whether they want to admit it publicly or not,

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