Marc Faber Full Interview with CNBC Asia 18 Apr 2011

Dr Marc Faber, editor & publisher of "The Gloom, Boom & Doom Report", was today interviewed by CNBC about the American budget deficit he offers his views on how to tackle the U.S. budget deficit, as well as how that is affecting his U.S. investment strategy. " I do not think that it is possible to reduce the deficit meaningfully unless you increase taxation significantly and unless you cut spending meaningfully , and there fore having the Democrats on one side o the Aisle and the Republicans on the other I do not believe that they will compromise , i think the debt ceiling will be increased yes , but I think the deficit will stay around minimum one and half trillion dollars for the foreseeable future "




Marc Faber " well basically I do not think that people should punt on Gold but they should be their own central bank and gradually accumulate gold reserves as a currency and they should basically hold it physically but not in the US outside the US " " I think there is the risk that the US will once again as they did in 1933 collect the gold expropriate the gold they will not take away and not pay anything they'll pay probably the market price and after they will revalue it it by say five times "
Marc Faber : I think you are right in saying that we are in a contest for the ugliest currency , but I disagree with the fact that people are heavily positioned in Euros , I have a lot to do with very well to do people around the world , Latin Americans US citizens Europeans Asians i would say most of them have at least 70 to 80 percent of their money in US dollars now occasionally the market participants the speculators may be heavily in the Euro and negative about the US dollar but by in large there a huge over hand of US dollars globally and I'll tell you if people could sell their dollars and move to something they believed in they would do it , but I believe that the best currency is still gold and silver and this is not the perception of most people they think that gold and silver are speculative investments "
"I think that conceivably the US dollar here could rebound but I maintain my longer term projection , the value of the US dollar will be precisely its intrinsic value namely ZERO precisely ZERO , yes I told you two years ago and I still maintain that "