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