Marc Faber : What a Great Job The FED Chairman has done !!

Marc Faber : let me give some statistics , when Mister Bernanke became FED chairman , oil was at 58 dollars a barrel it is now over a hundred , the S&P was at 1264 it is now at about the same level , Gold was at 480 dollars it is now over 1700 , and the civilian employed who were in 2006 120 million are now 130 million , the unemployment rate was at 4 percent it is now 8.6 percent , the average duration of unemployment was at the time 16 weeks it is now 40 weeks , What a Great Job The FED Chairman has done !!!!!! - in The Financial Sense Newshour - 07 Dec 2011
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Marc Faber Bloomberg Interview 07 December 2011

Marc Faber : if you are very gloomy what you will invest in , treasuries Italian bonds or commodities or equities and I happened to think that US equities are not terribly expensive so relatively speaking to other assets they may for a while actually do quite well ,.

Marc Faber - Financial Sense Newshour - 07 Dec 2011

Dr Marc Faber being interviewed by Jim Puplava of the Financial Sense Newshour on 07 Dec 2011 about his outlook for the economy for 2012 , Inflation , Gold commodities , China slowdown , the lack of ethics and morals that we see more and more in the financial markets especially with the MF Global scandal , and much more ....

Marc Faber on MF Global & The War with China

Marc Faber : well what keeps me up at night are night clubs ! but besides from that ...I mean I am not worried about anything because i have a diversified portfolio and I am fully prepared to have less money over the next few years because I see a very clear trend that the electorate will eventually vote for higher taxes for the affluent class , so the affluent class will have to be pay either , or they have to pay more income taxes there is no question about this that this will be coming , and there will be eventually capital control and I think one way or the other you lose money either in stocks or in bonds or in currencies and in what not ...so I am not worried about all these things , but what worries me the most is that the geopolitical situation has deteriorated very badly , the middle east is going to go up in flames and an attack on Iran is becoming more and more likely at some point and the Chinese reaction and the Russian reaction to that is unknown for sure the tensions are also rising here in Asia because the Americans are pushing for more influence in Asia and that has to be perceived by China as an aggression , it would be the same if say China was in the Caribbean and had bases there and it has military bases in Canada and Mexico then that would be perceived by the US as an aggression , you just have to look at the world from their perspective it is a country with 1.3 billion people and they have to essentially assure that they will have sufficient supply of oil , so they look at the world from a different perspective than we in the western world may do , that's my principal worry that eventually we will have war and the other worry that I have are the morals because if you look at what happened in MF Global basically if you have money with a broker or a bank , the bank or the broker have the fiduciary duty in other words whether it is legal or not but it is not ethical to take clients money and to speculate for your own account and that is what happened in MF Global and that is what is happening globally with the banks taking clients money basically and leverage up their balance sheets and when something goes wrong they expect government to step in in and bail them out and that is not correct and I think this will one day blow up and then may be people that have deposits in the banks may lose money who knows ....- in Bloomberg

Investors should diversify

Marc Faber : I am worried about everything , and this is why I am advising clients and we talked earlier about Gold , I am not saying that someone should have one hundred percent of his money in Gold nor do i say that someone should have one hundred percent of his money in equities and think somebody would have to diversify some in real estate some in gold some in equities and some in cash but I am very concerned about the slowdown in China , yes ...- in Bloomberg

The Dollar to strengthen while the Euro to weaken

Marc Faber : yes we have a lot of problems in the US but near term we have less problems than the European Union , so in a way i think that for the time being the dollar will be perceived as a relatively good currency and in particular I think the dollar will appreciate against currencies of emerging economies- in Bloomberg

The Stocks have actually acted relatively well considering the problems

Marc Faber : In general I think the markets are oversold and as I said I think you better off by investing in equities than in government bonds and in cash for the next ten years , now you have to live with volatility but I think that stocks have actually acted relatively well considering the problems we have and so I am not all that bearish about stocks , even in Europe because I happen to think that the Euro will weaken and once the Euro weakens stocks will find a low....but I am not interested in investing in Europe in general I prefer Asia , where in Asia we have another set of problems which is the slowdown of the Chinese economy ....- in Bloomberg

The politicians do not have the interests of the man in the street in their mind

Marc Faber : ...in The world the politicians are a special group of people , they do not have the interests of the man in the street in their mind , it's all about how to protect the established order that they created in other words ,the politicians created the mess with government regulatory involvement and with fiscal and monetary policies and now they are expected to solve the problem , they are not going to solve the problem but they are going to postpone it but at the cost of the future - in Bloomberg Radio Interview

The market to remain highly volatile

Marc Faber : “The market is likely to remain highly volatile, and fail to make new highs,” - in Bloomberg

A China Economic Slowdown will Cause a Commodities Slowdown

Marc Faber : I think a lot of people will care if china grows only at 5% rather than 10% or 0% in a hard landing case because China is the largest buyer of commodities in the world, and if the chinese economy slows down the demand for commodities slows down. then the economies of Brazil, Argentina,Australia everybody is affected and then they can buy less from China and then you have a downward spiral. - in CNBC 03 Dec 2011
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Marc Faber : Easing Cannot Solve the Chinese Economic Problems

Marc Faber : but let me tell you something about easing. when Mr. Bernanke became fed chairman, the S&P was at 1264. that was on February 1st, 2006. we're now at 1244. so the market is lower than it was at that time. in the meantime, gold has gone to $1,746. the easing may not mean that the economy will do particularly well. the easing can shift money into some sectors of the economy. the stock market in china may rebound, but i don't think we'll see new highs, and i think the economy will weaken because we have a very capital goods oriented economy,Capital spending and capital spending is very volatile more than consumption - in CNBC 03 Dec 2011
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Marc Faber : Obvious slowdown in the Chinese Economy & Possible hard landing

Marc Faber - CNBC Interview - 03 Dec 2011 :"Well basically the data can be manipulated, but in general I would say there is an obvious slowdown in the Chinese economy and as I pointed out in my report, I think there is a chance for a hard landing. " Says Dr. Marc Faber

Marc Faber : in China the transparency is very low

Marc Faber : I am not buying Chinese stocks but i bought recently or increased recently some positions in Hong Kong shares , because I happen to prefer to play China through some high quality companies and in the case of China the transparency is very low the visibility of earnings is very low and some very smart people have been hurt and I suppose they made a detailed analysis of what they were investing in and yet they were wrong so how do I Marc Faber who knows nothing about the balance sheets all among these comity and companies , but anyways ...how do i know how to analyze precisely a Chinese company so I do not know soI , at the China play I own some Hong Kong Companies ....- in Bloomberg Radio

The collapse of the Chinese Economy will affect the world

Marc Faber : "In China, if the economy slows down meaningfully or if there is a crash, it will have a huge impact on the demand from China for raw materials, for commodities. It will impact Australia, Africa, the Middle-East and Latin America," - in News Max 

China Economy softer than official statistics would suggest

Marc Faber recently said that he believes that the Chinese government is lying about the real figures of the chinese economy "I’m sure the economy (of China) is softer than official statistics would suggest and probably the government will start to print money at some point. So maybe stocks will rebound here because of money printing, but again, it won’t help the economy.... Dr. Faber was reported as saying by the business insider website

Europe will Monetize like the US

Marc Faber : “The big picture endgame in Europe is that they will also monetize like in the US and that will postpone the problem, but it will not solve it.” -  in Fox Business News 29 Nov 2011

Americans are borrowing to shop

Marc Faber : “The American consumer went shopping but it’s not supported by income growth. If you look at the share of labor income or salary as a percent of GDP going down, what is happening is that people are again borrowing and diminishing their savings rate and I don’t think that is very sustainable.” - in Fox Business News

The problem of the West is too much Debt and too many unfunded liabilities

Marc Faber : “The optimism arises from some sort of a bailout and monetization. But if you look at the market, OK it’s up, but gold is also up and oil is up. Like in the US, we monetized time and again and it’s just postponing the problem. In the end, crisis will eventually happen. The problem of the Western world is that there is too much debt and too many unfunded liabilities.” - in Fox Business News interview 29 Nov 2001

The Market rallies because of seasonal strength & oversold conditions

Marc Faber : “The rally came from a very oversold level. We have a very strong support on the S&P between 1100-1150. And usually the December month is a strong month as well as January so we have seasonal strength and oversold conditions and we can rally, but I don’t think you should expect too much. I think we’ll get into overhead resistance when the S&P rallies another 5% or so between 1250-1300.” - in Fox Business News interview 29 Nov 2001

Marc Faber Fox Business News Interview - 28 Nov 2011

Dr. Marc Faber spoke to Fox Business News on the 28th November 2011 about the Current Market Rally : “I think The rally came from a very oversold level. We have a very strong support on the S&P between 1100-1150. And usually the December month is a strong month as well as January so we have seasonal strength and oversold conditions and we can rally, but I don’t think you should expect too much. I think we’ll get into overhead resistance when the S&P rallies another 5% or so between 1250-1300.”

Marc Faber worried about China

Marc Faber : Well I mean we have not seen ( a sharp slide in GDP figures in china ) as reported by the government but we have seen it in the stock market and a lot of Chinese stocks are down 70 percent not from the peak in 2007 but from the peak this year or last year so we had actually a big decline in the stock market and if I have to make let's say a bet 'who do i believe' the stock market or the government officials and i bet on the stock market - in Bloomberg Radio Interview 26 Nov 2011
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Marc Faber : The Euro to weaken & the Dollar to strengthen in the near term

Marc Faber : Yes we have a lot of problems in the US but near term we have less problems than in the European Union so in a way I think that for the time being the dollar will be perceived as a relatively good currency and in particular i think the dollar will appreciate against currencies of emerging economies - in Bloomberg Radio Interview 26 Nov 2011

Marc Faber - Bloomberg Radio Interview 26 nov 2011

Marc Faber : ...an increasing number of investors are becoming aware that actually government bonds are not as safe as they may have thought originally or previously and so they are moving probably money out of bonds and cash into equities

Marc Faber increases his investments in Hang Seng Bank

In a radio interview with Bloomberg Radio dated 26 November 2011 Dr.Marc Faber announced that he has increased his investments in Hang Seng Bank Ltd. and Sun Hung Kai Properties Ltd. “I happen to prefer to play China through some high- quality companies,” “They have reasonable dividend yields and they’re high-quality companies.” Dr. Faber told Bloomberg Radio

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