Marc Faber : Big business is dirty

Marc Faber : ......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 FSN

The supply of Gold is actually contracting

Marc Faber : ....I was at the Resource Conference. This is one of the largest Resource Conferences run by Standard Charter Bank in Hong Kong. All the miners are there and all the bigshots in the commodity space. And investors that are interested in commodities are there. Ask the audience and you would think that these people have an exposure to gold. Only about five people in an audience of like four hundred had more than five percent of their assets in gold. I find this amazing. I was already at two hedge fund conferences. These are relatively intelligent people. You’d think, but none of them had any exposure to gold personally. I said to them, “You’re all intelligent people. How can you not have any gold at all? Don’t you see what is happening with the money printing in the world?” Where people, they look at gold, okay, it was two hundred fifty two dollars in 1999. It’s not fifteen eighty. They think it’s expensive at this level. What they don’t consider is by how much credit has increased over the last ten years, by how much the world’s population has increased over the last ten years, by how much the supply of gold has increased. It’s not increasing, it’s actually contracting. In the next five to ten years, the total gold supply in the world will go up by three times at three point eight percent. No more. You know, you mine something, it’s gone. It’s no longer there. And so the supplies that is no longer there is like oil. You burn it, it’s no longer there. So every oil well around is dry over time.- in FSN

Gold is the best asset class for wealth preservation

Marc Faber : Well, basically, I mean, I would say we look at different asset classes. So we have cash, we have government bonds, we have corporate bonds, we have real estate, we have equities and we have commodities and precious metals. And so the question is, you know, where do you put your money if you and I go away to an island or to jail for ten years and we can’t make any transactions and we come back in ten years’ time? I think if the objective is the maintenance of purchasing power, in other words, you just don’t want to wake up in ten years’ time when you come out of jail and what you have is worthless, then I would say that probably gold is the best alternative. If the question is how do you maximize profit, probably there may be more profit in equities because, you know, we have abysmal performance of equities in the last ten years. And particularly in the US, as a result of the decline in the value of the US dollar, equities would seem to me to be not particularly expensive. I think what would be dangerous for you and me would be to put all our money in US dollar cash and in US government bonds for ten years and then come back and maybe find out that we can buy with a hundred thousand dollars just a cup of coffee — or not even that. - in FSN

Marc Faber : Always Follow what the Jews are doing

Marc Faber : ..... 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 FSN

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. - in FSN

In America I still can criticize the Leaders , not in Asia

Marc Faber: Well, I mean, we have in the East not true democracies. But for some funny reason, we have a lot of economic freedom. It’s just that you have to be careful not to step on the government’s 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 couldn’t do in China. For sure. And it would be viewed very negatively. Say I live in Thailand and I’m not here frequently. Or if I went really after 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 American leaders, whether it was Mr. Bush or Mr. Obama, criticism is still accepted. - in FSN

Southern California is a gold mine

Marc Faber : [Southern California] It’s a gold mine. The girls are very friendly. In general, people are very friendly. I mean, everybody talks to each other. And I have to say, this is still a great quality of the US. If you go to the Midwest or you go to the South or you go to Southern California, people talk to each other in a pub and they enjoy each other’s company and it’s a very nice atmosphere. And that you don’t find in many other countries to the same extent. - in FSN

The US grossly neglected its infrastructure for the last twenty years

Marc Faber : ....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. - in FSN

The market keeps going up at the present time because of easing measures

Marc Faber : Yes, I mean the market keeps going up at the present time because of easing measures and today because of the rumors or the statements that the ECB is one way or the other, in one form or the other would essentially bailout Europe. So this has not really to do with economic fundamentals, which are not particularly good, but it has to do with money printing. - in FSN

Mish Shedlock & Max Keiser on 2012 Economic Outlook

Mike "Mish" Shedlock from Sitka Pacific Capital is interviewed by Max Keiser this 23rd December 2011 . Mish gives his perspective on the state of the global economy (Bonds , housing inthe US Australia and Canada ,the US Dollar ,the European debt crisis ,Gold and Silver , the stock market, commodities,China etc.) He addresses the potential for another deflationary-type event like the kind we saw in 2008, the state of both household, as well as corporate/bank balance sheets, and outlooks for the larger economy. Mish also announces that he is a Ron Paul supporter and that he thinks that Ron Paul has a good chance of wining

The limit of the Keynesian Monetary actions has been reached

Marc Faber : "The paradox of the situation is we got into trouble because of too much borrowing and too much spending but we have to spend more and borrow more to get out of it , I disagree but this is the view of the Keynesian economists" . Dr. Marc Faber added "The limit of these [Keynesian monetary] actions has been reached in the sense that You can increase debt but it doesn't increase prosperity or economic growth, because there is a point where the excessive debt growth doesn't stimulate economic activity any more, what it does it create bubbles in different sectors of the economy. And we have a global economy so the problem may not even happen in the US , If you look at the monetary policy of Mr. Bernanke it was designed to lift the housing market. The only asset that didn't go up since 2008 is housing." - in Reuters Interview
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Outcome in China Uncertain

Marc Faber : Coming back to China, look nobody knows precisely what the outcome in China will be. But all I can tell you is from living in Asia there has been a slow down in the growth in Asia. And in most countries, corporations have begun to report disappointing earnings. There is a reason why stocks in the world are down between 20% and 30%. The S&P this year as I expected, has out preformed the emerging economies. But there is a reason why stocks went down this much, and I think for monetary reasons they will rebound now, the way the S&P is rebounding, but it does not change the fact that something is not quite right. - in FSN

The US market is likely to outperform the Emerging Markets in the foreseeable future

Marc Faber : Foreigners have been selling Indian shares, so there is a negative view about India at the present. In the world, the consensus amongst fund managers is that India is not perfect and the US market is relatively more attractive than other markets. So, the money flows into the US markets. Markets like India and China have grossly underperformed, but the other markets are down 20 per cent. In the case of India, the rupee is down at the same time, so we have a terrific underperformance here. Although it is true that the US market is likely to outperform the emerging markets in the foreseeable future, it doesn’t mean the US market would go up much. Secondly, I would rather wait for a buying opportunity in India and other emerging economies that may arise in 2012. - in NDTV

The Chinese Tourists like Casinos

Marc Faber : "Eighty per cent of Chinese traveling outside the country for the first time head for a casino and 90 per cent of Chinese who travel to the US visit Las Vegas."

The whole derivatives market will cease to exit

Marc Faber : “I am convinced the whole derivatives market will cease to exit. Will become zero. And when it happens I don’t know: you can postpone the problems with monetary measures for a long time but you can’t solve them… Greece should have defaulted – it would have sent a message that not all derivatives are equal because it depends on the counter-party.” - in Reuters interview

Marc Faber on China Slowdown

Marc Faber : ....Coming back to China, look nobody knows precisely what the outcome in China will be. But all I can tell you is from living in Asia there has been a slow down in the growth in Asia. And in most countries, corporations have begun to report disappointing earnings. There is a reason why stocks in the world are down between 20% and 30%. The S&P this year as I expected, has out preformed the emerging economies. But there is a reason why stocks went down this much, and I think for monetary reasons they will rebound now, the way the S&P is rebounding, but it does not change the fact that something is not quite right.

India should let its currency decline further

Marc Faber : The RBI [The Central Bank of India] can defend the rupee by increasing interest rate significantly, which may help. However, it would be more desirable for India to get the currency to decline somewhat further. - in NDTV

Gold is owned by a minority

Marc Faber : .....But I have to find out, I have one concern about gold, I was recently in Taiwan and South Korea at two large conferences. Nobody owns any gold. Gold is owned by a minority, even in the U.S. Most people in the U.S. have no clue what an ounce of gold is or looks like in the vault. The same in Europe. And in a democracy, it is very popular to take away from a minority. Like in Switzerland we now have a new state law that is being voted about in a few months that anyone who has assets of over $2,000,000, who dies and passes on these assets to his children, he will have an estate duty of 20%. Now most people in Switzerland, they do not have assets of $2,000,000 or $2,000,000 Swiss Francs, so they say yeah, good idea, we tax the rich. Then next year, I can come and introduce the referendum that says, everyone who has assets of say over $50,000,000 we tax him 50%. I know people who will say who has $50,000,000 dollars in assets, very few, the people will accept and vote for it. Now next year I can come back and have another referendum, everybody who has assets of over $900,000,000, we tax them 90%. And this is what the tyranny of the masses can do. You can make it appetizing to the masses, by just taking away from a few people. But I am worried most about, in the case of gold—not the price, that I am not worried—but I am about government taking it away.

Marc Faber : NDAA bill is a very dangerous legislation

Marc Faber : Well my main concern is that the world, especially the Western World, Europe and the U.S. is far less free than when we were children. I mean I talk to my friends all the time about this. When I grew up in the 50’s and 60’s, we had enormous freedom. Now, everything is controlled, every move you make is controlled. And the recent legislation in the U.S., whereby Americans can be detained by the military and put in jail without trial, is a very dangerous legislation. And my view is that the cold war was good at the time, you had super powered that opposed each other, and they were very careful what they did. Now you have fragmented world and most dangerously, you have a superpower that is from a secular point of view, long-term point of view in a relative decline compared to the rest of the world. And that superpower, has elements in the military and the conservatives, that are rather aggressive. At the same time, you have China rising, you have India rising, there is a rivalry between the two countries, and you have essentially in Russia a system where this is how far the Western World will go and not beyond. And so yes, to some extent, the tensions have increased dramatically. And what has also changed is when I grew up, China was oil self-sufficient. Now they import nine million barrels of oil a day. They are dependent on Middle Eastern oil. And believe me, this is the number one concern of the Chinese leadership: how do we get access to resources without interruption? - in FSN
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Gold can easily go down 20% - 30%

Marc Faber: Let me put it this way, of course it is a concern to me, if an asset class like gold and silver has been the best asset class over the last ten years, maybe copper was even better or a Warhol Painting and so forth. That concerns me. But I can turn around and say look, if I consider the price of gold, an average price in the mid 1980’s, say we take $400 or $450 or whatever it is, and we take the monetary base at that time, we take the international reserve. We take into consideration that China has not really in earnest begun to open up, and we happen to have the wealth expansion in emerging economies and so forth and so on. I can maintain, well actually the gold prices is not up, it is just a price of money or the value of money that has declined so much against the stable anchor. And so I do not think that we are in a bubble stage. But I mean I tell everyone, unless you buy gold it can easily go down 20% - 30%. This is not a prediction of mine, I am just telling people do not buy it on leverage, buy it as an insurance. If have health insurance, you also hope not to get sick, but just in case you get sick you have something. In the case of gold, as I said, my only concern with the gold insurance is the government will take it away. That is my only concern. I am not concerned about the price. - in FSN
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Real Estate in America is now a Good Investment

Marc Faber : my advice is to have say 25% in gold, 25% in cash and bonds, 25% in equity, and 25% in real estate. Now when I tell people in America that real estate is now relatively inexpensive, relatively compared to other asset classes, they look at me as if I am coming from the moon. But four years ago they were buying real estate like crazy and if you told them that real estate is in a bubble, they would not have believed it. I think now that time is coming to allocate some money to real estate and with the 25% cash you just wait until there is a great big break either in stock or in gold. And then you add to positions. - in FSN
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Zero Interest Rate forces Investors to Speculate

Marc Faber: Well basically we have unprecedented intervention in the free market. So fiscal measures, in other words, fiscal deficits and regulatory intervention, and we have unprecedented monetary intervention with artificial low interest rates that created an environment of negative real interest rates. Every citizen in the world has to realize that if he deposits money with the bank, after one year, the money has lost purchasing power; because the cost of living has increased, and the return on each deposit is basically 0% after paying the deposit fee to the bank and all the other fees, he has got a negative interest rate. And in this environment, you force people to speculate. And they speculate, they will go into one asset class for a while, and then into the next one and then most people will lose money by speculating. But it creates enormous volatility. And my advice is look, you and I, we do not know how the world will look in five years time if we are realistic. Okay we may get paid as financial commentator and so forth, but we do not know how the world will look like and we have to kind of invest in such a way that we do not lose everything. And so my advice is to have say 25% in gold, 25% in cash and bonds, 25% in equity, and 25% in real estate. Now when I tell people in America that real estate is now relatively inexpensive, relatively compared to other asset classes, they look at me as if I am coming from the moon. But four years ago they were buying real estate like crazy and if you told them that real estate is in a bubble, they would not have believed it. I think now that time is coming to allocate some money to real estate and with the 25% cash you just wait until there is a great big break either in stock or in gold. And then you add to positions. And I am also recommending to have allocations to income producing investments in the sense that if you have dividend paying stocks and in the U.S. stocks do not have a high yield, but say in Asia, I can still provide you a portfolio that have equities that will yield between 5% and 7%. But with that kind of a yield, you have a cash flow and you can reinvest your dividends. So in the long run you should be okay. But then again, not only about gold do I have a concern, I also have a concern, generally speaking, about our capitalistic system. For sure, people with assets, they will be taxed more heavily, that is for sure. - in FSN
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US government fiscal and monetary intervention benefited China and other emerging economies

Marc Faber : .... the problem with government intervention both fiscally and monetary, is that there are always unintended consequences. And all I am saying is basically, through the Fed’s intervention—monetary intervention—the U.S. has not progressed in 12 years. Now someone will tell you oh, we have Google and this and that. Yes correct, in that sense, some sectors of the economy have done well, but these sectors belong to say 3% or 1% of the population. If someone wins the lottery in ten years he can say, look I have a method how to win the lottery, once or even twice and so forth, but the majority eventually loses out. But the big winners of this monetary policy were essentially China and other emerging economies because the capital spending and the industrial production shifted to these countries and lifted commodity prices and so on balance, it actually damaged the U.S. and the entire Western World dramatically. - in the Financial sense Newshoure Interview
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We are going to see a Slowdown in India

Marc Faber : All the emerging economies are slowing down, not only India; also the exports are being impaired. We are going to see a slowdown in India in terms of economic activity and this is natural that an economy has phases of rapid growth and then low growth and recession. The government should not intervene in the normal business cycle, but it has always intervened. However, it did not intervene when there was a boom in terms of accumulating savings. So, you have essential asymmetrical monetary policy. - in NDTV 14 Dec 2011

The FED & the ECB know only one thing : Print Money

Marc Faber : “What do these bureaucrats in Brussels do besides eating well and sleeping the whole day…and sharpening their pencils? They’re precisely the useless bureaucrats that have brought about the financial crisis worldwide.”
“Somewhere, somehow the central banks will agree to print money. It may not be called QE3. And in Europe it may not be the ECB that buys bonds, but they may do it through the IMF or some kind of other institution.” - in a recent interview with Fox Business News
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EU should Dissolve & PIIGS should Default

Marc Faber : “If I were Greece or Portugal or Spain, I would say ‘bye-bye.’ I exit the EU. And the debts in EU, that’s your problem.”
“The best would be to dissolve the EU…let the markets sort this out. Let the countries default,” he asserted. ”It’s going to be painful – very painful. But rather than to again intervene into something that is not going to work in the long run is the wrong medicine.”
“Sometimes it’s better to default and take the medicine then to pretend that there is no financial trouble.” - in a recent interview with Fox Business News
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Marc Faber outlook for the next 5 years

Marc Faber : I don’t know how the world will look in a five years’ time; we may have another recession or depression. We may have to deal with high inflation. The bond market and the equity market may break. We don’t know how the world will look like in the next five years because we are not dealing any longer with free markets but with markets that are distorted by continuous intervention by the government. So, making any prediction is very difficult. My advice would be to diversify 25 per cent of your assists in real estate, 25 per cent in equities and 25 per cent in cash and bonds and 25 per cent in precious metals. - in NDTV

Marc Faber : At times Equities are better than Commodities

“We cannot be too dogmatic,”
“I am also interested in commodities in the long run, but there will be times when equities are better than commodities and there will be times when you have to move back into commodities.” Marc Faber, editor and publisher of The Gloom, Boom & Doom Report” said in a keynote address at the IndexUniverse’s 4th Annual “Inside Commodities” conference held on Dec. 8 at the New York Stock Exchange. - in indexuniverse

Why Marc Faber is Bearish on China

Marc Faber : “The reason I’m not very keen on China at the present time [is because] we had a credit bubble, we still have artificially low interest rates and a huge fiscal deficit in orders words artificial stimulus. That’s coming to an end. Yes, the government can further stimulate and slash interest-rates again and reduce reserve requirements, but it will just postpone the problem and aggravate the problem in my opinion.”
“When you have an economy like China that becomes so big so quickly, you can have a more meaningful setback. If the U.S. economy grows at 3% or contracts that 3%, it has no impact on the price of copper to speak of….In the case of China, whether the economy grows at 10% or 5% as a huge impact on the demand for iron ore and copper and aluminum, steel and coal. The Chinese economy today has a much larger impact on the rest of the world than is generally perceived economically speaking.” - in wallstcheatsheet

U.S. Equities Not Terribly Expensive

Marc Faber on his latest report : “It’s actually quite gloomy but if you’re very gloomy what do you invest in: Treasuries, Italian bonds or commodities or equities? I happen to think U.S. equities are not terribly expensive, so relatively speaking to other assets, they may for a while actually do quite well.” - in wallstcheatsheet

Marc Faber : Global Collapse in Derivatives Market coming

Marc Faber : ..when you make a prediction never put a prediction time on it , i do not know when it (Global Collapse) will happen but I am convinced that one day the whole derivatives market will cease to exist will become zero , when it happens I do not know , you know you can postpone the problems with monetary measures for a long time but you can't solve them ...if there is a war in the world , you think that derivatives will be settled ?! of course not , Greece should have defaulted then it would have sent the message that not all the derivatives are equal because it depends on a counter party ...- in Reuters Interview
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Marc Faber on The Gold Standard

Marc Faber : well to some extent we are already in a world where Gold has an increasing role in the sense that its price has adjusted upward not as much as the quantity of money since the mid 1980s and not as much as the government debt in the mid 80s but it has adjusted on the upside so what we have is not necessarily a rise in the gold price but the falling value of paper money against the value of gold and I think increasingly people will move their cash into gold but you have to understand this is a very difficult process because a lot of people purchase new gold under the influence of the economic Sufism that is being broadcasted by central bankers and the Keynesian economists as a relic of past times and as a bubble , I was in Taiwan and in South Korea last week and I have huge audiences at conferences and nobody owns any gold nobody , if I had been to these conferences in the year 2000 everybody would have been loaded with technology stocks media stocks telecommunication stocks , but the fact that nobody owns Gold shows me that it is not ye a bubble and I think that eventually more and more people will come to the view that Gold is not a commodity but is a substitute for US dollars Euros and other paper currencies which can be printed in unlimited quantity whereas Gold is limited by the annual supply ...- in Everything Financial Radio - December 04 2011
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Marc Faber - Everything Financial Radio - December 04 2011

Marc Faber - Everything Financial Radio - December 04 2011 , Dr Marc Faber explains that the west has a severe debt problem , and that the real house hold income will continue to decline , meanwhile we will continue to see an expansion in emerging economies , with a continuous shift in economic balance from the old world namely Europe and America to the new world namely Asia and that will cause economic and geopolitical tensions .....

Marc Faber : QE3 will come in one form or the other and in Europe also

Marc Faber video Interview Reuters - 09 December 2011 : there is no question that QE3 will come in one form or the other and in Europe also , they'll monetize ...they will make some kind of nice announcement to boost confidence and they will just postpone the real solutions to the problem they will address some of the symptoms says Dr Marc Faber publisher of the Gloom boom and doom Report

Marc Faber : Dissolve The EU !

Dr. Marc Faber the editor of The Gloom Boom & Doom Report on Fox Business News today 09 December 2011 is calling for the EU to dissolve : " I think actually personnaly the best would be to dissolve the EU ," he says " yes it's the best let the market sort this out and let the countries default and , it's going to be painful very painful but rather than to again intervene into something that is not going to work in the long run I think it's the wrong medicine " he explained

Marc Faber : gloomy Outlook for China

Marc Faber : "The reason I'm not very keen on China at the present time [is because] we had a credit bubble, we still have artificially low interest rates and a huge fiscal deficit in orders words artificial stimulus. That's coming to an end. Yes, the government can further stimulate and slash interest-rates again and reduce reserve requirements, but it will just postpone the problem and aggravate the problem in my opinion." "When you have an economy like China that becomes so big so quickly, you can have a more meaningful setback. If the U.S. economy grows at 3% or contracts that 3%, it has no impact on the price of copper to speak of....In the case of China, whether the economy grows at 10% or 5% as a huge impact on the demand for iron ore and copper and aluminum, steel and coal. The Chinese economy today has a much larger impact on the rest of the world than is generally perceived economically speaking." - in Bloomberg TV Interview
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Marc Faber outlook for Emerging Markets

Marc Faber : There is close correlation between all markets in the world. This year, the U.S. has grossly outperformed the emerging markets In Asia, we're down between 15% and 25% in markets. In Eastern Europe, even more. The U.S. this year is a wonderful market relative to the rest of the world. " "I think this out performance may go on for a while. Some emerging markets could rebound more strongly than the U.S. because they are more oversold. Like India, the currency is down 18% since July and the market is down 22%. Currency adjusted, the market has been extremely weak and is oversold. It could rebound somewhat here, but forget about new highs. It's not going to happen anytime soon. - in Bloomberg TV Interview
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Both the Euro and the Dollar are long-term undesirable currencies

Marc Faber : I have a very special stock tip for you. The symbol is g-o-l-d. That is what I prefer to hold. Both the Euro and the Dollar are long-term undesirable currencies, especially given zero interest rates in the U.S. Equities to some extent become like cash because they become a store of value compared to cash at a zero interest-rates. Paintings become a store of value, stamps become a store of value. - in Bloomberg TV Interview
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Marc Faber Outlook for The Market

Marc Faber : Right now, the market is in neutral territory. It was very oversold on October 4th when the S&P dropped to 1,074. Now around 1260, the upside in my opinion will be between 1,280 and 1,350 because there's a lot of supply around that area. But if there is some good news coming out of Europe, and good news would simply mean postponing the problems for another few years with some kind of money printing operation, either by that ECB or IMF or EFSF,  lift stock prices higher."

"(Postponing problems) is not good news, but it is better news than if the whole Eurozone falls apart. It gives some time to maybe find better solutions. I doubt they will be found, but with money printing you can hide a lot of things and you can postpone problems as we have seen in the U.S.
- in Bloomberg TV Interview
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The Euro will Survive

Marc Faber : I think the euro will survive, the question is in what form. It may survive without the weaker countries or it could survive theoretically just as a currency aside from local currencies. You would have in France and Italy and Spain and Greece, local currencies and...the dollar. So, I could travel anywhere in Europe and still pay in euros. - in Bloomberg TV Interview
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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