Marc Faber : Well-to-do people may lose up to 50% of their total wealth

Marc Faber : well, I mean, I would say that well-to-do people may lose up to 50% of their total wealth, they'll still be well to do. instead of a billion, they'll have say 500 million. but I think there is a massive wealth destruction coming down the line. I'm not saying it's coming tomorrow but I think looking at the bailout and the money printing, they basically have postponed the problems and actually made them larger in the sense that the government debt has increased dramatically and somewhere a solution will have to be found for this government debt - in CNBC

Marc Faber : The money printing will not create long-lasting wealth

Marc Faber : well, basically I think that whole bailout and the money printing will not create long-lasting wealth, nor will it create healthy economic growth. and if i look at the world, then i see essentially well to do people that have done unbelievably well and i see the middle class and working class that hasn't done well. and i think somewhere down the line we will have a massive wealth destruction. that usually happens either through very high inflation or through social unrest or through war or credit market collapse. maybe all of it will happen but at different times - in CNBC

Marc Faber : The unfunded liabilities increase rates substantially

Marc Faber : Yeah, plus the pension fund industry. They have to have some returns. When interest rates are at zero on cash deposits and on, say, long-term government funds on the ten year notes, say, two percent of thirty years, three percent, they cannot meet the liabilities so the unfunded liabilities increase rates substantially. - in Chris Martenson Interview

Marc Faber : In a money-printing environment I am reluctant to short

Marc Faber : "In a money-printing environment I'm reluctant to short. But say whereas I recommended investors to increase their positions last October, November, December, now I think that if people are overweight in equities they should reduce positions somewhat…maybe cash. The U.S. dollar is desirable at the present time. And we have to say one thing. The market consists of thousands of stocks and the market consists of many different stock markets globally. The S&P has done exceptionally well relative to, say, emerging economy stock markets, most of which are still lower than they were in 2011. So, if you look at the advance-decline line of all the share markets in the world, then it is definitely being deteriorating. And I happen to believe that money printing will continue and I would probably buy financial shares and I believe that the Japanese market may outperform all the other markets against all expectations in 2012." - in BloombergTV

Marc Faber On bad returns for Gold in Q1

Marc Faber : "Yes, that's correct. But the returns have been very good since 1999 and year over year I think gold is still up 12%…I think that gold is in a correction period and we had an intermediate peak on September 6, 2011. And I always advise don't put all your money into gold because it doesn't have any cash flow. So you are really dependent on the price appreciation. That is different from owning, say, equities that have a dividend yield of 5%, which I can find in Asia." - in BloombergTV

Marc Faber : More QE to come - The Financial Sense NewsHour - 05 Apr 2012

Marc Faber interviewed by Jim Puplava of The Financial Sense NewsHour - 05 Apr 2012 : More QE to come , we will likely see inflation before having deflation , shorting the markets might be risky , the central banks worldwide will keep on printing money , smart investors should stay diversified in this kind of environement , Marc Faber recommends dividend-paying stocks, gold, emerging market stocks and real estate.

Marc Faber not recommending to Buy more Gold at this point

Marc Faber : "As you know, I have been very positive about gold and I still accumulate gold every month. But I think that we had an intermediate peak at $1921 on September 6 of last year. Then we dropped sharply to $1,522 an ounce on December 29, 2011. Since then we've had a feeble recovery. I think that the correction period is not yet over. I'm not selling my gold because I don't trust governments and I don't trust the Federal Reserve, nor would I trust the ECB or other money traders in the world. They are all going to print money. I still recommend to hold gold." - in CNBC 02 Apr 2012
Click here to watch the full interview>>>>>>>>

Marc Faber : QE3 has to be Enormous

Marc Faber : "It would have to be very significant to boost all asset prices including homes, stocks, bonds and commodities…Much larger [than QE1 and QE2]." - in CNBC 02 Apr 2012
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Marc Faber on Why Investors should have caution

Marc Faber : "Basically I think that earnings may begin to disappoint. That corporate profit margins could deteriorate. And I think we still have a lot of issues. Don't forget we have QE1, QE2 and Operation Twist. I think in order to really hold asset prices across the board much more QE3 would have to be gigantic. I'm not ruling out that stocks can continue to go up but I doubt they will go up at the same rate as the first quarter. And if you look at the technical under underpinnings of the market, they have deteriorated. The list of new highs is deteriorating. The short positions are way down. And we have an overbought condition in the market if we measure the number of stocks above the 50-day and 200-day moving average. So, generally I would say maybe April is traditionally still a month of seasonable strength but somewhere in the next six months I think you can buy the whole market much cheaper." - in CNBC 02 Apr 2012
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Marc Faber on The Alex Jones Show - 04 Apr 2012

Marc Faber on The Alex Jones Show - 04 Apr 2012 - Alex Jones talks with Swiss investor Marc Faber about the rapidly crumbling global economy. Faber writes the monthly investment newsletter The Gloom Boom & Doom Report and is the author of Tomorrow's Gold: Asia's Age of Discovery. He also writes for Forbes, Die Welt, the Wall Street Journal and other publications

Faber : The market is no longer oversold the way it was in December

Marc Faber : "I think that if you look back at a year ago we made a peak of 1370 on S&P on May 4 and then dropped sharply to 1074 on October 4. Then we recaptured the lows in November and December. Since then, the first quarter has been very powerful and has surprised investors because of its strong performance. And I think now the expectations are very high. The market is no longer oversold the way it was in December. And everybody thinks that the race is on, go along with equities, the hedge funds have positioned themselves on the long side and optimism is high. I would be very careful at this stage." - in CNBC 02 Apr 2012
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Marc Faber on the FOMC release & Ben Bernanke - 03 Apr 2012

Dr Marc Faber interviewed by Capitalaccount of Rt America - 03 April 2012 about the FOMC release and Ben Bernanke's zero interest rates policy which is forcing people to speculate " We have known now after the experiment with socialism and communism and the planned economy that the complete disaster government interventions into the market place have been but this is precisely what the federal reserve and the treasury are trying to do and for sure it will fail over time " Marc Faber said

Marc Faber interview - Bloomberg 02 Apr 2012

Marc Faber on Stocks, Gold, Fed Policy, Strategy . Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for stocks and investment strategy. Faber, speaking with Betty Liu on Bloomberg Television's "In the Loop," also discusses Federal Reserve policy and the gold market. (Source: Bloomberg) "In a money-printing environment I'm reluctant to short. But say whereas I recommended investors to increase their positions last October, November, December, now I think that if people are overweight in equities they should reduce positions somewhat...maybe cash. The U.S. dollar is desirable at the present time." Marc Faber told Bloomberg TV

Faber : Earnings will deteriorate and Profit margins will shrink

Marc Faber : "First, I think there are some cost pressures creeping in terms of rising raw material costs, especially energy, and the problem with, say, a QE3 would be that you are doing it in an environment of very elevated oil prices. So, maybe the energy prices would go up more and squeeze the margins of some corporations. And certainly squeeze the consumer. And my sense is that the economy has bottomed out but is far from robust because the typical household is being squeezed by higher cost of living increases. There are various measurements. You can measure the CPI. It is rising by less than 3%. Everywhere I look I see households essentially paying between 5% to 10% more for goods and services than a year ago." - in CNBC 02 Apr 2012
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Faber : The Japanese market may outperform all the other markets against all expectations in 2012

Marc Faber : "In a money-printing environment I'm reluctant to short. But say whereas I recommended investors to increase their positions last October, November, December, now I think that if people are overweight in equities they should reduce positions somewhat…maybe cash. The U.S. dollar is desirable at the present time. And we have to say one thing. The market consists of thousands of stocks and the market consists of many different stock markets globally. The S&P has done exceptionally well relative to, say, emerging economy stock markets, most of which are still lower than they were in 2011. So, if you look at the advance-decline line of all the share markets in the world, then it is definitely being deteriorating. And I happen to believe that money printing will continue and I would probably buy financial shares and I believe that the Japanese market may outperform all the other markets against all expectations in 2012." - in CNBC 02 Apr 2012
Click here to watch the full interview>>>>>>>>

Marc Faber predicts Massive Wealth Destruction to Hit Investors

Dr. Marc Faber , The author of the Gloom Boom & Doom Report warns that the world will face "massive wealth destruction" caused by either inflation or social unrest. "Well to-do people will lose up to 50% of their total wealth," he adds. Investors, particularly those in the "well-to-do" category, could lose about half their total wealth in the next few years as the consequences pile up from global government debt problems,

Marc Faber : America haven't got the Money to Finance a War

Marc Faber : "Say war breaks out in the Middle East or anywhere else, Bernanke will just print even more money -- they have no option...they haven't got the money to finance a war,"
"You have to be in precious metals and equities... most wars and most social unrest haven't destroyed corporations - they usually survive," Dr Marc Faber told Reuters on the sidelines of the Middle East Investment Conference 26 March 2012

Marc Faber @ CFA Institute Middle East Investment Conference 26 March 2012

Marc Faber, editor of “The Gloom, Boom and Doom Report,” kicked off the CFA Institute Middle East Investment Conference by quoting Ernest Hemingway who said, “The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring permanent ruin.” On this downcast note, Faber attacked short-term Keynesian spending and reviewed the implications for investors of the accelerating shift of world economic and political power from the developed countries to the developing world. - source :  http://meic.cfainstitute.org/2012/03/26/marc-faber-continuing-financial-crisis-must-be-endured

Marc Faber : Real Estate Market has not been effected positively from money printing

Marc Faber : I don’t think we are on a permanent plateau of printing but understand. If you start to print it has the biggest impact, then you print more, it has a lesser impact unless you increase the rate of money printing very significantly. And, the third money printing has even less impact and the problem is like the Fed, they printed money because they wanted to lift the housing market but the housing market is the only asset that didn’t go up substantially. We have bottomed out in many markets. I can see that but across the board real estate has not been effected positively from money printing. But what hasn’t been affected positively from money printing is the price of silver, is the price of gold, and of equities that have more than doubled from the lows in 2009. - in Chris Martenson interview
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Marc Faber : China has now got its own domestic credit bubble

Marc Faber : China has now got its own domestic credit bubble. Faber sees parallel scenarios being played out in India, Southeast Asia and Latin America. The growing economic power of these nations will inevitably lead to further geopolitical tensions where the MENA region is a potential powder keg. - in seekingalpha

Marc Faber : If you cannot live with Volatility, stay in bed

Marc Faber : "Political risk was high six months ago and is higher now. I think sooner or later, the US or Israel will strike Iran - it's almost inevitable," "Say war breaks out in the Middle East or anywhere else, Bernanke will just print even more money -- they have no option...they haven't got the money to finance a war,"
"You have to be in precious metals and equities... most wars and most social unrest haven't destroyed corporations - they usually survive,"
"If you can't live with volatility, stay in bed" Marc Faber told Reuters on the sidelines of an investment conference. - via ET Now

Marc Faber : Invest in remote Farmland

Marc Faber : The crucial question over the next decade is not “where will my returns be highest?” but “where will I lose the least money?” In fact, he believes that losses of 50% should be considered as a relative success , investment in remote farmland could pay off Marc Faber advises , as growing social tensions could make urban life intolerable. In his view the welfare state has evolved from the many helping the few to the few helping the many and that the inevitable crash, or “rebooting the computer,” will simply have to be endured. - in The CFA Institute Middle East Investment Conference via seeking Alpha

Marc Faber : Money printing leads to unintended consequences

Marc Faber : But Chris, what you say that it hasn’t been working. In my opinion it's not entirely correct. In the short term, it has been working to some extent in the sense that equity prices are up and interest rates are down. And, so companies can issue bonds at extremely low rates. But every money printing exercise in the world leads to unintended consequences at a later point. And, this is the important issue to remember. We don’t know yet for sure what the unintended consequences are. For sure, we know one unintended consequence and this is that the middle class and the lower classes of society, say fifty percent of the U.S. has rather been hurt by the increase in the quantity of money in the sense that commodity prices in particular food and energy have gone up very substantially. And, since below fifty percent of income recipients in the U.S. spend a lot, a much larger portion of their income on food and energy than to say the ten percent richest people in America and highest income earners, they have been hurt by monetary policy. In addition, say the lower income groups if they have savings traditionally they keep them in saay deposits and in cash because they don’t have much money to invest in the first place. So the increase in the value of the S&P hasn’t helped them but it helped the five or ten percent or one percent of the population that owns equities. So it's created a wider wealth inequality and wealth inequality and that is a negative from a society point of view. - in Chris Martenson interview
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Marc Faber : The unfunded liabilities increase rates substantially

Marc Faber : Yeah, plus the pension fund industry. They have to have some returns. When interest rates are at zero on cash deposits and on, say, long-term government funds on the ten year notes, say, two percent of thirty years, three percent, they cannot meet the liabilities so the unfunded liabilities increase rates substantially. - in Chris Martenson interview
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Marc Faber : The FED is printing Money left, right, and center

Marc Faber : Well, I mean I think personally that over the last twenty years the financial sector has not criticized the federal reserve sufficiently. They should have attacked the federal reserve for printing money left, right, and center. But, the financial service industry benefits from writing asset prices. So when you have a crisis whether it's the S&L crisis or the tequila crisis of ’94 or LPCM or the NASDAQ going down they cheered that the Fed continued to print money because it lifted asset prices. And, so their salaries went up and their performances went up and so forth and so on. So what I would do if I were the Fed chairman having been completely wrong about really everything, which is a truth series about the depression and the current conditions, for sure I would resign. But if I were, say, a pension fund I would tell the contributors and the recipients either you pay more or you receive less but we have to balance the books because the returns aren’t going to be the ones that we are used to between 1982 when the Dow Jones bottomed out below eight hundred and subsequently rose to over fourteen thousand. It's not going to happen again in real terms. Maybe if they print money but if they print money, as I said, the purchasing power of the, say, average American household would diminish because the cost of living will increase that much more. - in Chris Martenson interview
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Marc Faber Oil Prices Outlook

Marc Faber : I think you’re asking a very important question. Traditionally, oil prices around this level have been negative for economic growth around the world whereby we have to distinguish. Say, in 1998 when oil prices bottomed out at ten dollars a barrel the income from oil or the expenditures for oil were around four hundred million dollars. Sorry, four hundred billion dollars. Now, at the current price they are around four trillion dollars. In other words, some people get the four trillion dollars, the people that produce the oil, the Emirates, Saudi Arabia, Russian, Venezuela, Ecuador, Angola, Nigeria, and so forth. And, on the other hand, the people that use the oil, the U.S. and Western Europe, they pay a higher price. So for some people it's revenue and for some people it's an expenditure. The people that have to spend it unless they can borrow more and more as they have in the past, they can roll it over. In other words, it's not damaging. But, the people that can’t borrow money to pay for the increased price in the oil, in other words, like an increased tax, they suffer so they have less to spend. And, that’s why I think the economy in the Western world will be relatively sluggish. I think we’ve bottomed out in the U.S. but will remain relatively sluggish. But, to mind you say anything happens in the Middle East and the price of oil goes from, say, the current level of a hundred ten or a hundred dollars to a hundred fifty or two hundred dollars, what do you think Uncle Ben will do? Uncle Ben, he knows only one thing and this is to print money. - in Chris Martenson interview
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Marc Faber : The Financial system will be an MF Global where you dont get your money back from the Banks

Marc Faber : Well, I think that every person should own some precious metals as a reserve and as an insurance policy against a complete meltdown in the financial system. And, as you know, we had MF Global. What did the clients get, less than what they had in the company and I think eventually the financial system will be an MF Global where you don’t get your money back from the banks and the investment banks and from the mutual funds and so forth and so on. And, so I think everybody has to think to himself, how do I protect myself against such a black sworn event. Now you have a, say, a life insurance policy and you have a health insurance policy, if you have a health insurance policy and a life insurance policy, you’re not exactly hoping to die and have an accident. But if it happens you have it, and so I would suggest that people own some precious metals. And, I think, say, the price has gone up a lot since the lows in 1998, 1999, but compared to the expansion of credit in the world, compared to in the expansion of wealth in the world, and money printing, I don’t think that gold is terribly expensive. Having said that, I think we’ve reached a peak, but it went south of nine hundred twenty-one on September 6th of last year. We made the low at one thousand five hundred twenty-two on December 29th of 2011. We rallied again, I think we’re still in a correction period but I’m not going to sell my gold when I see people like Obama running America and possibly they’ll have a republican after 2013 but I don’t think the republicans will be much better. So I want to own some gold, and as I told you, I think the money printing will go on unless the Fed would come up and say we’re no longer going to print any money. The monetary base will remain steady, and even in that case I wouldn’t believe them.- in Chris Martenson interview
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Marc Faber : Hide your Gold in a safe deposit box outside the US

Marc Faber : This is a very good question. Where is anything safe? I mean I think in a safe deposit box it's relatively safe but maybe not in a safe deposit box in the U.S. because if you look at MF Global case it seems, and I don’t know for sure, but it seems that some people got their money but not others. This is a very disturbing thing to happen in the financial system. And, when I see this I think we have to be very prudent. So I would hold a safe deposit box outside the U.S. Now the question is how is it to hold a safe deposit in a bank if the bank closes down and this and that, you can also hold safe deposit boxes in duty free stores, warehouses, at airports around the world. In Switzerland we have them, in Singapore we have them, so that’s a possibility. - in Chris Martenson interview
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Marc Faber : The next Crisis will be much worse

Marc Faber : Well, I think that if you look at the history of crisis in the last, say, thirty years, each one was greater and larger. And, we had to mash that grain down so they printed money and so what did they produce, the housing bubble, and then even the worst crisis and the financial crisis. And, now they essentially give themselves the problems but they say alleviated the symptoms of the problems. And, I think the next crisis will be much worse. But, the question is, you know, as I said earlier, how do you protect yourself in the next crisis? Do you own equities, sovereign bonds, cash, commodities, gold, precious metals, and so forth. And, my view is that you’re probably better off in precious metals and in equities than in cash and in bonds. And I also happen to believe that in some parts of the U.S., notably the south, Phoenix, Atlanta, Las Vegas, where real estate prices are bottoming out. Now can they drop another ten percent? We are sure another drop of ten percent is not the end of the world when you consider that most individuals were in the NASDAQ in 2000 and then it dropped seventy percent. So I’m not saying that real estate will go up substantially, I’m just saying now you can buy real estate in the south of the U.S. at, say, thirty to forty percent discount to the construction costs. So I think it's reasonably priced. I don’t think it's – yeah, actually I think on global standards it's relatively cheap. But, my wider view is, you know, since 1982 we had the colossal asset inflation in equities, in real estate, and since 1998 also in commodities. One day this asset inflation will come to an end. The way the consumer price inflation in the 70s came to an end in, say, 1980 and thereafter we had this inflation. So it may be that the asset price inflation will not vanish altogether but we may be in a period of disinflation so if people are investing money maybe they should adjust to the reality that the returns in the future will not be ten or twenty percent per annum but may only, say, two percent or three percent above the rate of inflation. And, in terms of bonds and cash it will be, say, five percent below the level of inflation. - in Chris Martenson interview
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Marc Faber : We have a Credit addicted Economy

Marc Faber : Well, you could build a conspiracy theory. Basically the U.S. had a significant increase in the average household income in real terms from the late 1940s to essentially the mid-1960s. And, then inflation began to bite and real income growth slowed down. Then came the 1980s and in order not to disappoint the household income recipients you essentially printed money and had a huge debt expansion. So if you have an economic system and you suddenly grow your debt at a very high rate, it's like an injection of a stimulant of steroids. So the economy grew at the relatively fast pace but built on additional debt. And, this obviously cannot go on forever. It went on for much longer than I thought because I started to write about excessive debt growth already in the late 80s, I was very early about this. But when it comes to an end you have a problem. So the Fed had never paid any attention, the Fed is about the worse economic forecast you can imagine. They are academics. They never go to a local pub. They never go shopping or they lie but basically they are a bunch of people who never worked a single day in their lives. They’re not businessmen. They have to balance the books, earn some money by selling goods, and pay the expenditure, they get paid by the government. And, so these people have no clue about the economy. And, so what happens is they never paid any attention to excessive credit growth and let me remind you, between 2000 and 2007, credit growth was five times the growth of the economy in nominal terms. In other words, in order to create one dollar of GDP, you had to borrow another five dollars from the credit market. Now this came to an end in 2008. Now the Fed have never paid any attention to credit growth, they realized if we have a credit addicted economy and credit growth slows down we have to print money. So that’s what they did. But believe me it doesn’t take a rocket scientist to see that if you print money you don’t create prosperity. Otherwise, every country would be unbelievably rich because every country would print money and be happy thereafter. - in Chris Martenson interview
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Marc Faber : The Fed is the dumbest institution

Marc Faber : Yeah, sure. I mean the Fed, in my view, is the dumbest institution because if they write history, they could figure out what money printing does but they do it. - in Chris Martenson interview
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Marc Faber : in Asia we have also Imbalanced growth and widening social divisions and rising social tensions

Marc Faber : Well, basically in Asia we have a lot of inflation and much more than what the government published. I mean prices are going up substantially and the economies are still doing reasonably well because we have a competitive advantage and we have to make the consumption growth. But, basically there’s a difference, I mean everywhere I go in the world there’s one thing that strikes me. You go to a luxury hotel, there’s Maserati’s, Ferraris, Bentleys, Jaguars, and so forth in front of the hotel and the ordinary people are struggling. I see that everywhere. And, so I think that in Asia we have also imbalanced growth and we have widening social divisions and rising social tensions and I also think that the Chinese economy, which grew a trend line between 2000 and 2007, and they printed money, had huge fiscal debt, and so forth and they are now in a significant slowdown period. I’m not talking about the stock market. Maybe the stock market goes up because of money printing. All I’m saying is the economy is slowing down very significantly which will have implications on the global economy. - in Chris Martenson interview
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Marc Faber : correction forthcoming in Equities Market

Marc Faber : Well, I’m not sure. I think the market is overbought. I think correction is forthcoming but who knows if there is even money printing and markets are irrational at times and maybe they pushed them up more. The technical indicators have deteriorated. So I personally, when I was positive about equities in November, December but the sentiment was very negative now I’m taking some money off the table. - in Chris Martenson interview
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Marc Faber : Gold & Silver can go down another thirty percent

Marc Faber : Yes, but all the gold and silver, I was just telling people, you should buy it as an insurance. It can go down thirty percent. We are in volatile markets so you know you want to have your insurance safely. You don’t want to leverage up in the futures market of gold and it goes down ten percent and you’re wiped out because of margin calls. It's all a matter of degree, how much you allocate to each asset class. - in Chris Martenson interview
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Marc Faber : we are all doomed

Marc Faber : Yes. You know looking at the governments and the interventions into the economic system, I mean I tell everybody I grew up in the 50s and 60s, I think we had much more freedom than there is freedom today. And, so this is a concern of mine. So I mean look, in my view we’re all doomed. But, maybe if you keep your gold in a safe place you’re doomed later than other people who have no gold and only paper money and government bonds. - in Chris Martenson interview
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Marc Faber : The FED is about the worst economic forecaster you can imagine

Marc Faber : The FED is about the worst economic forecaster you can imagine

Marc Faber : The FED is about the worst economic forecaster you can imagine. They are academics. They never go to a local pub. They never go shopping -- or they lie. But basically they are a bunch of people who never worked a single day in their lives. They’re not businessmen that have to balance the books, earn some money by selling goods, and paying the expenditures. They get paid by the government. And so these people have no clue about the economy.
And, so what happens is they never paid any attention to excessive credit growth -- and let me remind you, between 2000 and 2007, credit growth was five times the growth of the economy in nominal terms. In other words, in order to create one dollar of GDP, you had to borrow another five dollars from the credit market. Now this came to an end in 2008.
Now the Fed never having paid any attention to credit growth, they realized if we have a credit-addicted economy and credit growth slows down we have to print money. So that’s what they did. But believe me it doesn’t take a rocket scientist to see that if you print money you don’t create prosperity. Otherwise, every country would be unbelievably rich because every country would print money and be happy thereafter.

Marc Faber : The Perils of Money Printing

Marc Faber : " First of all, I do not believe that the central banks around the world will ever, and I repeat ever, reduce their balance sheets. They’ve gone the path of money printing and once you choose that path you’re in it, and you have to print more money.
If you start to print, it has the biggest impact. Then you print more - it has a lesser impact unless you increase the rate of money printing very significantly. And, the third money printing has even less impact. And the problem is like the Fed: they printed money because they wanted to lift the housing market, but the housing market is the only asset that didn’t go up substantially.
In general, I think that the purchasing power of money has diminished very significantly over the last ten, twenty, thirty years, and will continue to do so. So by being in cash and government bonds is not a protection against this depreciation in the value of money."

Marc Faber : Moving off fossil fuels for security But not for profitability

Marc Faber : This is a very difficult question to answer. Basically, I'm convinced that, over time, to drill a hole in the ground in the Middle East or in other emerging economies and then bringing that oil through a pipeline onto a ship into the countries that consume oil is not an elegant solution to the energy problem. I think eventually this will go away. But in the meantime, alternative sources of energy are extremely expensive. Unless the oil price collapses to like $50, most alternative sources of energy will not be profitable. If someone says to me, we need alternative sources of energy for security reasons, yes, I agree. But for profitability I doubt it. - in OilPrice.com

Marc Faber: Japan energy problems after Fukushima

Marc Faber : Well, I guess they’ll lean towards more natural gas and more oil so they can offset this shortfall of nuclear energy. Now I don't think that this will change the nuclear energy prospects long term in the world, because other countries like India and China will build their numerous nuclear energy plants. In the case of Japan, I think the power plants which had the problems were antiquated. In other words, they were not up to modern standards. - in oilprice.com

long Oil and Gold in view of the escalation with Iran

Marc Faber : Well, if there are escalations, then obviously you have to be long, oil and gold. My sense is that the Iranians are playing the same game the Japanese played in the '70s and '80s. They always negotiated but never did anything about the changing balances - they just want to delay the hour of truth. Every day, I think the Iranians are getting closer to having nuclear weapons. I can understand why. The whole world is hostile towards Iran, and they are encircled. In the west, France has nuclear weapons and Britain and the U.S., and their neighbor Israel, towards the west. Then in the east, India and Pakistan and of course China. So why shouldn't they have nuclear weapons? Mind you, either there is all around abandonment of nuclear weapons by all the powers, or every country should be allowed to have them. We in the Western World, we have the misguided belief that we are there to judge which countries may have and which countries should not have nuclear weapons. But maybe our view is wrong. My view is that if I were looking after Iran, for sure I would want to have nuclear weapons. For sure! - in oilprice.com

Marc Faber : time to be rather cautious

Marc Faber : Basically, since March 2009, equities have doubled in value by and large. Some have gone up more than 100%, some a little bit less, we’ve had a huge bull market. Last year, almost a year ago on May 2nd, the S&P reached a high of 1,370. Then we dropped into August and into October, and we bottomed out on the S&P at 1,074 on October 4th. Since then, we have a 25% rally. The mood in October and November of last year was extremely negative. I think this is the time to be rather cautious. Personally, if I had heavy exposure to equities, I would take some money off the table. - in oilprice.com

Marc Faber : The best opportunities for investors in Asia at present ?

Marc Faber : Right now, for the next one or two months, I don't think that stocks will go up a lot. I personally think they will correct. But long term, I still like Asia. My concern is if the Chinese economy slows down meaningfully that we could have economic weakness spreading around Asia as well, as well as in countries that supply commodities to China, like Australia, Brazil, Argentina, and so forth. Right now, say for the next two months, I'm very cautious. - in oilprice.com

Marc Faber : The Only Change under Obama was for the worse

Marc Faber : I don't want to get into an overly political discussion, but I think that first of all, we have in the U.S. and elsewhere highly expansionary fiscal and monetary policies, but we have restrictive regulatory policies. In other words, Obamacare is a big problem for many medium sized and even large companies, because they don't know exactly how much it will cost them. That has retarded hirings of people. Mr. Obama has intervened into the economy massively, left, right, and center. Every government intervention has consequences. Just to give you an example, the U.S. government debt - I'm only speaking about the government debt, not the prime debt - has gone from essentially zero 200 years ago, to a trillion dollars in 1980. By the year 2000, we were roughly at $5 trillion. Now in 12 years, we've gone to close to $16 trillion. That excludes the unfounded liabilities. Under Mr. Obama, the fiscal deficit has exploded. The big question is: Will we ever, in the U.S., have a fiscal deficit of less than $1 trillion or $1.5 trillion? I don't see it. Under Mr. Obama, spending has gone up and tax revenue has gone down. Change, if there was any change under Mr. Obama, it was for the worse. In my view, he's a very disappointing president. - in OilPrice.com

The Future of Renewable Energy

Marc Faber : This is a very difficult question to answer. Basically, I'm convinced that, over time, to drill a hole in the ground in the Middle East or in other emerging economies and then bringing that oil through a pipeline onto a ship into the countries that consume oil is not an elegant solution to the energy problem. I think eventually this will go away. But in the meantime, alternative sources of energy are extremely expensive. Unless the oil price collapses to like $50, most alternative sources of energy will not be profitable. If someone says to me, we need alternative sources of energy for security reasons, yes, I agree. But for profitability I doubt it. - in OilPrice.com

Should America use the Strategic Petroleum Reserve

Marc Faber : I think selling down the reserves would be a useless strategy as one of the main reasons prices are rising is due to international tensions. It’s possible for an increase in supplies to drive down the price a little bit. But in emerging economies like China and India, the demand continues to go up. Now, it may not go up every year by the same quantity it did in the last 3 years, because in the last 15 years, oil demand in China tripled, from 3 million barrels a day to 9 million barrels a day. So it's conceivable that in a recessionary environment in China, oil demand will not go up substantially for one or two years. But because the per capita consumption is so low in countries like China and India compared to say the U.S. and Japan and Western Europe, I think the trend will continue to increase. - in the OilPrice.com

Oil Prices projections for the next 3-5 year

Marc Faber : Well, you’ll have to give me a second. I need to call Mr. Ben Bernanke and ask him how much money he will print. Commodity prices were in a bear market from 1980 to 1998, and since then they've gone up. But because of expansionary monetary policies and artificially low interest rates they have increased more than would have otherwise been the case. We don't know exactly how long this asset bubble will last - but say if you had interest rates in real terms, of five percent, instead of negative five percent, then I think all commodity prices, including gold, would be lower. - in OilPrice.com

Marc Faber : Investors shouldnt Buy Oil right now

Marc Faber : I think there is a risk that oil prices will go much higher. At the same time, the bullish consensus on oil is now at one of the most elevated levels it's ever been. In other words, from a contrarian point of view, you shouldn't buy oil right now. I think it may go down somewhat. In general, if trouble breaks out in the Middle East, or if there is a war, I think the price of oil could go much higher. - in an interview today with OilPrice.com

Marc Faber : big correction in Gold if they stop printing money

Marc Faber : "All I'm saying is that, in my opinion, the gold price correction is not yet entirely completed,"
"I see significant support around the $1,500 an ounce level, but it could drop lower."

"We could have a big correction if global liquidity tightens or they stop printing money," - Marc Faber said during the Middle East Investment summit at the Jumeirah Beach Hotel in Dubai last week as reported by Gulfnews

US Treasuries and Inflation

Marc Faber : "The US will pay the interest as long as it can print money,"
"But suppose you buy a ten-year government bond that yields 2 per cent and inflation is perceived to be 5-7 per cent. To what extent would investors still buy these bonds? That question is not too far away." - Marc Faber said during the Middle East Investment summit at the Jumeirah Beach Hotel in Dubai last week as reported by Gulfnews

Marc Faber : No Better time to Buy Gold than now

Marc Faber : Gold is nowhere near a bubble phase and there is no better time to buy it than now considering the violent volatility global markets could face in the context of the economic uncertainties and excessive liquidity central banks are pumping in.
I don't believe gold is heading into a bubble,"
A bubble is characterized by the majority of market participants being involved in a market space. I saw a gold bubble in 1979-1980, when the whole world was dealing — buying and selling gold 24 hours a day, globally.- Marc Faber said during the Middle East Investment summit at the Jumeirah Beach Hotel in Dubai last week as reported by Gulfnews

Government interventions have created more economic and financial volatility

Marc Faber : Basically I will try to explain that instead of smoothing out the business cycle, government interventions have created more economic and financial volatility and have had very negative consequences for the US in particular. And as I pointed out earlier, these measures, such as some of the fiscal and monetary measures we've talked about, are based on erroneous economic sophism. - in the gold report

Marc Faber : Cash and Government Bonds are not very safe

Marc Faber : That in this environment of money printing, cash and government bonds are not very safe and that you have to navigate through different asset classes. Under normal conditions, cash and government bonds are essentially the safest investments—not investments with the highest returns, but the safest. That is not the case today. - in the Gold Report

Marc Faber : ZERO Economic Growth in China this year

In an interview with with Abu Dhabi based alarabiya TV legendary investor Marc Faber, editor and publisher of the gloom boom and doom report said that China has no growth right now. Chinese government statistics are fake for the most part and if Chinese economy is slowing down there will be more money printing in China. the Chinese government economic figures are meaningless, because they are manipulating most of the economic data, which confirms that there is no economic growth in China this year in fact China's production of steel, cement and electricity as well as the volume of its exports and car sales are stable or declining compared to last year, which is incompatible with the growth announced by the government he explained , China is headed towards a slowdown Marc Faber confirmed The 25% hike in the S&P in October and November last year happened despite a very low trading. I am watching the markets right now and not doing anything, I think the markets should correct, I believe investors should not hold 100% of their assets in paper. Regarding Gold . Marc Faber says : Gold is in a long term correction, the Euro will be saved but not all the Eurozone countries will be a part for the EU, some of them will be evicted and will be in big trouble because of their currencies, .

Marc Faber : Rental Properties in the US a good Investment now

Marc Faber : I travel around the world all the time and I'm interested in the formation of prices so I have an idea about trends in prices. You have to consider real estate prices in the context of currency valuations. For example, five years ago, homes in Australia and Canada were inexpensive and now they aren't, but not necessarily because prices have gone up. Although prices don't necessarily track with whether a currency increases or decreases in value, in those two cases, the value of the currencies also has increased. The US does have areas where real estate is incredibly low relative to other parts of the world. I can buy homes in Atlanta and Phoenix for less than I'd pay in Thailand, and because the GDP per capita in the US is of course much higher than in Thailand, on a relative basis, those homes in Atlanta and Phoenix would be attractive. As a foreigner, I am not interested in investing in US real estate for various reasons, including taxation, management and regulation. But if I were a US citizen, I would say now is a relatively good time to buy real estate and rent it out and net a yield of maybe 6–8%. Many of my friends who own rental apartments do very well on rental income. Many of the people who no longer qualify for mortgages can rent. - in The Gold Report

Marc Faber : Gold Price may not exceed the $1,922/oz in 2012

Marc Faber : This year the Gold Price may not exceed the $1,922/oz high that we reached on Sept. 6. Maybe it will. I'm not a prophet. I'm just telling people that I'm Buying Gold and holding it. I don't speculate in gold. If you Buy Gold, you better understand that the price could always move to the downside. If you don't understand that, don't invest in gold—or in anything. - in The Gold Report