The price of Commodities will explode in sight of a probable World Wide War

Marc Faber in Vienna

Dr. Marc Faber :
if China had military bases in Canada in Mexico in the Caribbean sea the Americans also would not be very happy . It is absolutely clear that for China it is strategically unacceptable that the Americans have their bases in Central Asia , The Chinese and the Russians have founded an organization some years ago called the Shanghai cooperation Organization with precisely those countries China Russia Kazakhstan Kyrgyzstan Tajikistan and Uzbekistan and the observers are Iran India Pakistan and Mongolia basically the Russian and the Chinese want to keep the Americans out of Central Asia , absolutely clear it will then overtime lead to conflicts , I would not not expect that one division of tanks will face another division of tanks and that it will come to such a war but the Chinese they do it of course through the north Koreans or using others and they will support of course all the elements that are hostile to the Americans in this region and therefore the afghan war will last a long long time a bottomless pit , i should be obvious , and when it comes to a war and I assume that the financial and the monetary policy in America will not be successful in the sense that the standards of living will improve and over time there will be new problems more inflation and the number of the unemployed will hardly fall as it was in the case after 2001 and the last station will war fighting and then in time of war the commodity prices rise sharply , these are the Napoleonic wars the American civil war World war I Viet Nam War etc..therefore I would recommend investments in commodities..
The bubble in china is not a credit bubble , the credit has not expanded too much , in the last time more , but as a percent of the Gross national Product not especially and the houses prices In comparison with the gross national product and in comparison to the income personal income hey have rather fallen ...but where the bubbles exist in China , the investment bubble are over capacities one has built way too much capacities and therefore is the stimulus program in China actually of no use , because if you have overcapacities in the world you can well print money and supply money then you build even more capacities if the money goes into the private sector , If a businessman has overcapacities then he would not of course build a new fabric , what he will then do with the excess liquidity is to speculate in the real estate and the stock market