Marc Faber : 2017 Disaster will be Bigger Than Ever Seen

Marc Faber The Risk of Global Economic Collapse. Next Disaster will be Bigger Than Ever Seen











I maintain that for a long time that 2:15 you cannot shop to monetary system to a 2:19 bunch of academics most of whom never 2:23 worked in their lives except in academia 2:25 and that government agencies such as the 2:30 Federal Reserve and the other central 2:33 banks in the world and there's no 2:36 question that it will end badly they are 2:40 pretty significant monetary experiment 2:44 here we have a recorded human history of 2:49 something like five six thousand years 2:51 and interest rates have never been this 2:55 low we never had negative interest rates 2:59 and it is clear 3:01 one day the bond market will react 3:04 negatively but it's not so crystal clear 3:07 how it will many face it it helps 3:12 because in theory if you think about it 3:15 in Japan the bank of japan is 3:18 essentially buying all the day that are 3:22 being issued by the Japanese Treasury so 3:26 that keeps rates very low 3:29 the question is what will burst happen 3:32 that collapsing the currency and if 3:36 there is a collapsing the currency again 3:40 what will the current city you know you 3:43 could argue some would argue well the 3:46 yen will collapse against the US dollar 3:48 the Euro will collapse against the US 3:51 dollar and others will say well the US 3:54 dollar will collapse the gates again and 3:57 again the europe we don't know for sure 3:59 but my sense is that Karen sees will 4:07 continue to lose that purchasing power 4:09 then if you're cold 4:13 I mean you're not that young anymore so 4:16 you also live through the 70s early 80s 4:19 when people were all concerned about 4:22 accelerating inflation and now the 4:26 slogan is always the inflation but 4:29 actually in fact if you look at home 4:33 prices in the US 4:34 if you look at stock prices if you look 4:38 at art prizes at vintage cars if you 4:43 look at your insurance premiums separate 4:45 did you look right at their e the 4:49 educational costs for your children and 4:52 taxes and contributions to the 4:54 government 4:55 everything has become massively more 4:58 expensive so I don't see any evidence of 5:02 serious deflation where the price level 5:05 like in the Depression years dropped 5:08 thirty percent that hasn't happened some 5:11 prizes that come down to say someone 5:14 will say well the price of a pc or a 5:17 notebook or mobile phone has come down 5:20 but that is again depends on what model 5:24 you buy that models of computer i use 5:27 actually their prices have gone up now 5:30 someone will come and said that the 5:32 functionality of the computer you have 5:34 is much better day today than it was 5:37 five years ago 5:38 that's correct but i also need a much 5:41 better computer solutions announced to 5:44 function in business that I needed at 5:45 that time like 15 or 20 years ago I 5:49 didn't need the internet we have faxes 5:51 and alexa machines and source so it 5:54 changed everything but in general I 5:57 would say the cost of living of people 5:59 have gone up a lot and that's why you 6:02 see a relatively poor economy and most 6:07

people have not benefited from the asset 6:11 bubble they cause the brownie the 6:14 technology bless up 6:16 yeah and because it will end badly 6:18 they're socially does not breaking 6:23 poverty it is poverty that brings 6:26 socialism when people are disenchanted 6:29 when people are unhappy about the system 6:34 isn't there 6:35 from Donald Trump and Bernie Sanders are 6:39 symptoms of a very unhappy population 6:43 otherwise they wouldn't have gone this 6:45 far life there is a come but this is not 6:47 all in the u.s. in democracies in 6:50 general there is a complete disconnect 6:53 between the will of the people between 6:58 the people and the government officials 7:00 and that I think is most people 7:05 understood what the Fed is doing they 7:08 would be against it as it happens as it 7:12 happens mostly will understand what the 7:14 Fed is all about the more interested in 7:17 facebook pictures not only day look at 7:20 second nobody has basically and it is it 7:25 translates seen travesty the way central 7:30 bankers are behaving and destroying the 7:33 value of money and you have to also see 7:38 there is credit growth that is usually 7:42 you talk to your family or other states 7:45 doubling the world there's credit that 7:48 is used with a you and I we build a 7:50 factory with borrow money and to build 7:54 the factory to buy the land to acquire 7:57 the machinery to employ the employees 8:00 and to acquire in ventures and we start 8:03 producing out of the production we can 8:05 then cover the interest payments and 8:09 repay taste but our perfect pet cells in 8:15 the last 20 30 years in the world has 8:18 been deaths that are unproductive mainly 8:21 government state transfer payments in 8:25 other words you take money out of your 8:27 pocket and give it to somebody else's 8:30 pocket has no economic value at all and 8:36 so I think you're right it will end very 8:38 badly but if you ask me exactly how 8:41 badly and when it will EDD the bad heat 8:44 I don't know my says is that one way to 8:47 protect your 8:48 selby through diversification you can't 8:52 exchange for us to have all your money 8:54 in cash in the bank that has to be 8:57 understood in an environment where 8:59 essential banks are destroying the value 9:02 of money 9:03 it's dangerous to have only cast so i 9:05 would have some real estate with low 9:08 leverage and I would have maybe some 9:12 equity i have taken this and I would 9:16 have some precious metals you know if I 9:21 would essentially avoid government bonds 9:24 that have a negative yield your return 9:27 our days in the world you have a 9:28 trillion dollars of bubbles with a 9:31 negative yield right you know it you're 9:34 guaranteed to lose money maybe not that 9:37 much but you're guaranteed to look some 9:39 money right well you know it's not such 9:42 a great optimism is such that it makes 9:45 what I guess the lie i just keep on 9:49 going back to you know like earlier 9:53 years and I i'm still very young I'm 9:56 always 73 but i'm gonna i'm gonna make 9:58 it something out this and out but you 10:01 know that my x was so different when I 10:04 was building of businesses and I've done 10:06 a few of those and and in mind is that 10:08 you know you saved money you invested it 10:12 you purchased items that were producible 10:15 that produced in come you stayed out of 10:19 debt and basically everything that I've 10:21 learned everything that I have done to 10:23 become the to be where I am today i own 10:26 this whole studio and I do it for fun I 10:30 mean you imagine someone saying oh 10:32 you're going to open up a studio just 10:33 for fun but this is what I do this is 10:37 one of the things that I think this is 10:38 some people you know very well has to be 10:41 great for people like you 10:43 thank you so much i appreciate those 10:44 words from you especially but what 10:47 bothers me is that the whole world seems 10:49 to be contrary to the way i have built 10:53 businesses and the way I have grown up 10:56 and what really surprises me is that the 10:59 bastion of solid currency 11:01 your home homeland of switzerland is 11:04 that not right here from your your 11:06 camper to them it has the highest 11:08 negative interest rates in europe i 11:10 believe and you would think they would 11:12 be read our country standing up and 11:14 saying no this is wrong it's it would be 11:17 the Swiss and they didn't do that is it 11:19 is it a worldwide conspiracy they all 11:21 can't be on the same page for the same 11:23 at the same time doing the same idiotic 11:26 thing what you're wearing on that I want 11:30 to tell you some people have talked 11:32 about currency wars there's no currency 11:35 war except there is coordination among 11:40 central bank's they talk to each other 11:42 daily every day the bank of england the 11:47 federal reserve the ECB the bank of 11:49 japan ready coordinate the monetary 11:52 policy so for awhile say the faith easy 11:55 from qe1 qe2 then the operation twist 12:01 qe3 then they to the Japanese well you 12:06 know you better do something as well 12:09 because your units this is strong here 12:12 to bring the value down of the end so 12:14 then they a part and that the ECB and 12:17 barks and the problem for small 12:21 countries like Switzerland is then if 12:25 they don't play the game their currency 12:29 appreciates very substantially now don't 12:33 misunderstand only i personally as an 12:36 economy i don't think that the throttle 12:39 currencies damaging your industry right 12:43 told DX then she brought started by 12:48 entrepreneurs and industry they always 12:51 say all the occurrences too strong we 12:53 can compete at the country with the 12:56 strongest currencies over longer periods 12:59 of time like Germany Japan which should 13:03 that are the strongest exporting country 13:06 right and country that have weak 13:09 currencies over longer periods of time 13:11 like Latin America they are very weak 13:14 industry 13:15 resources but their industries are 13:17 relatively weak strong currency forces 13:21 the entrepreneurs to become more and 13:25 more productive so what insolence the 13:29 view was them among politicians 13:30 intervals that they can complete the 13:35 current is strong so they have to take 13:37 measures to lower the value of the 13:40 currency which to some extent they 13:42 managed to do but it has no positive 13:46 impact on suits and the other viking 13:49 defense the week yet haven't been 13:51 bothered at all for the economy in fact 13:54 it's been negative safe your Japanese 13:57 you have your assets again so two years 14:01 ago your assets in yen could be 14:04 exchanged into u.s. dollars after thirty 14:08 percent higher value if you look at 14:11 Japan you measure the gdp n in dollar 14:14 terms gp's down thirty percent now in 14:18 dollar terms right so your sense these 14:21 evaluations and r is are far from 14:26 certain to be beneficial at all but my 14:32 sense is that all currencies will 14:35 eventually continue to weaken and 14:38 they'll probably weekend against 14:40 monetary assets like gold silver and 14:46 platinum well you know I a I i took some 14:51 basic again on the courses when I went 14:54 to college and I i went to a very good 14:57 college good pace college as a time in 14:59 downtown New Yorkers in wall street area 15:01 and it was the very popular college for 15:04 people who want to go into marketing or 15:07 finance and up 15:09 I don't recall one page of economics 15:14 history economic theory that talk about 15:17 the benefits of negative interest rates 15:20 where did these clouds get this idea 15:22 from yes you said is there clowns 15:28 it's just a cue for 15:29 well well if I was to do the idea is 15:34 basically that if you have excessive 15:38 States you want to reduce the burden of 15:43 the people that have to date but there 15:47 any unintended consequences for the 15:51 system saying let's say the America or 15:54 throughout the world a lot of people 15:57 have savings say you could be more 16:00 retirement so you would have savings 16:02 your would have some income from UT 16:06 interest on your savings and you would 16:09 have your pension and you would have 16:10 social security whatnot 16:12 now the people that have savings they 16:14 don't get anything in some countries 16:17 deputy in July as number two you see the 16:25 head and other central banks they 16:29 brainwash the world in the kind of 16:34 telling them the operation is bad and 16:39 inflation is good right 16:41 this is often economic nonsense did you 16:44 say in the 19th century in the u.s. we 16:49 had the hundred years basically of price 16:52 stability with intermediate period of 16:56 deflation but what happens is that the 17:00 real wages went up and I would waited to 17:03 a stable or rising and the cost of 17:07 transportation cost of living went down 17:10 and so people became richer in other 17:14 words gdp per capita is in real terms in 17:19 the 19th century increase at the past 17:22 the pace then after the federal reserve 17:24 was formed so it was not assisted where 17:30 deflation was negative vibration has 17:33 some negative aspect when you're over 17:37 leveraged but this is not the problem of 17:40 the equation 17:41 it's the problem 17:42 not the central bankers the crown is 17:46 closed a little appropriately they were 17:49 sleeping on the wheel during the huge 17:52 text bubble they created at the end of 17:55 the 1990s and then until 2017 and now 17:59 they're creating an even greater faith 18:01 bubble but they started the larger 18:03 government state that is the least 18:05 productive day 18:07 what we we've been through now this is 18:10 the third major bubble in 15 years or so 18:13 you know we we've had the the dot-com 18:16 bubble the tech bubble bubble of that 18:19 we've had the housing bubble and and now 18:22 we have a debt bubble our a bond bubble 18:26 and this this one trump the other two 18:30 significantly now we didn't solve the 18:35 problems the patient was dying back in 18:37 1998 of limit long-term capital 18:41 management that blew up Jim Rickards 18:43 who's the lead counsel at the time 18:46 you'll have to negotiate with Greenspan 18:51 at all in order to save the entire world 18:55 from collapsing 18:56 well that is miniscule compared to what 18:59 is occurring today I didn't wonder what 19:04 these people are thinking of they know 19:06 it's not going to last and what are they 19:08 doing to prepare for the big one 19:11 yes they don't do anything there they 19:14 just singing one of the senses from 19:19 andrew said the other city we are 19:21 messing people in your event 19:24 yeah it's not only that they're 19:25 incompetent but there are also 19:27 Harrigan's that is the problem number 19:30 two I mean you raised the issue of ltcm 19:34 long-term capital for the system it 19:39 would have been based if they had failed 19:42 right because that was a time when it's 19:45 not yet too big to fail and the Ndege 19:49 and the nasdaq bubble it would have been 19:52 better to let it derail a weather 19:55 and like the system be cleaned out 19:58 instead of as the neo Keynesian all 20:02 wanti to create another bubble but you 20:06 understand you're dealing with the fund 20:09 management industry and wall street they 20:12 love bubbles right because their fees 20:16 are paid on net asset value the worst 20:20 for them he takes them actually asset 20:23 prices decline then the gateleg fees so 20:27 they encouraged actually it's kind of 20:30 the optic your relationship between the 20:34 goldman sachs's of this world I'm not 20:36 singling out goldman sachs although 20:38 maybe 1 should and the central bank's 20:41 potential banks they will coordinate 20:44 with the wall street people and divorce 20:48 what could pull and when essential 20:51 banker retire he gets an advisory job 20:55 with one of the world Street firm pays a 20:58 few million dollars a year not my 21:01 problem 21:02 I'm happy for them I'm just saying it's 21:04 basically a mafia that is not run by 21:10 professional gangsters but by clowns 21:13 what the fuck thank you 21:17 well you know I i usually give people 21:20 the you know who are not in tune with 21:23 the economics of the financial condition 21:25 you know the average Joe Blow who these 21:27 things simplified i thinkwell just 21:29 consider 1998 the patient got very sick 21:33 and the doctors knew what type of 21:36 medicine would be necessary in order to 21:38 save the patient but they decided that 21:41 would be too much work they just gave a 21:43 lot of morphine and he felt really good 21:45 so he popped out of bed and he's running 21:46 around with all this morphine and then 21:49 the morpheme wore off and then he got 21:51 really very very sick and hardly walk 21:53 but they pump them up with a whole bunch 21:55 of morphine again they got openings able 21:57 to at least walk around with a cane but 21:59 he can walk around and he felt pretty 22:01 good about it 22:02 well now the patient is sick again and 22:06 the morphine eight going to work 22:08 so how do you see what do you see the 22:12 houses things that unraveled i see 22:15 nothing but I mean I don't be 22:17 melodramatic but it seems like all those 22:20 are my guests financial Armageddon is is 22:22 is before us and we're facing in a as it 22:26 like that I basically agree with you but 22:28 the other hand is your print money in 22:35 theory you can boost the dial Jones to a 22:37 hundred thousand within two years like 22:40 you just have to creating up right and 22:43 you can boost the japanese market you 22:46 just trained enough at where I have some 22:50 hesitation to believe that entirely is I 22:55 see some times of inflation they're 23:01 rising your tent at some point the money 23:07 printing may not go into stocks and into 23:11 bonds and into our but it may go into 23:15 rise in consumer prices and then what 23:17 happens and this has a because i started 23:21 the process of trying inflation 23:24 countries or inflation high in countries 23:27 with high inflation what happens is that 23:30 this happened in the US and in Europe 23:32 real wages go down in other words right 23:36 the cost of living of people enjoying up 23:39 more than the way G so the standards of 23:42 living is declining and but when that 23:47 happens what usually then occurred is 23:52 that the Connelly were some 23:54 significantly then the clouds have to 23:57 sexual banks will say well and there 24:01 will be supported by the likes of 24:03 Krugman well we need more we didn't do 24:07 enough right then throwing a money at 24:10 the system qe4 accurate by few things 24:14 and that can go on for quite some time 24:17 you know that the sense buying can keep 24:21 on buying 24:22 the balance that the Treasury the 24:23 issuing I don't know how it will end but 24:26 i suppose that in this situation people 24:30 and investors with who lose confidence 24:32 in the system and they will want to own 24:36 precious metals or some properties now 24:39 some properties are too expensive but 24:42 some properties around the world in the 24:45 countryside are not that expensive you 24:47 living tools up 24:50 well maybe in time location its expenses 24:53 like Phoenix but in other locations 24:55 maybe not practical training is going 24:58 well it you people want to blame all of 25:02 the people who have money and of course 25:05 they they they categorize everyone into 25:08 once one group of course there are those 25:11 people within the system that is 25:13 cheating the system rather connected 25:15 with government with industry that have 25:17 some some sort of Allegiance through 25:20 were individuals are they support the 25:23 government for office and as a result 25:25 they get kicked back and all that funny 25:27 money hold that dirty stuff that goes on 25:29 but for the most part there are people 25:32 who would hear two basic valid economic 25:38 principles like you know you produce you 25:42 invest you save you know and the cycle 25:44 which are very few I i believe and and 25:48 tell me if I'm wrong those people people 25:51 who are adhering to the old paradigm of 25:55 hard work honest living 25:59 saving you know and and doing the right 26:02 thing basically economically and 26:04 personally these people are going to do 26:07 extremely well because they're always 26:10 prepare for catastrophe because that's 26:12 the way they live they always make sure 26:14 that there's money on the side that the 26:16 money is allocated a certain way and 26:18 that their business are productive and 26:20 out of debt now but these people are not 26:23 the mega-rich these are justly the those 26:27 people who are doing well because they 26:29 adhere to a principles of economics that 26:33 are valid you agree with 26:35 that yes of course I've been there as it 26:40 as the case for you you think my parents 26:43 they have the least through world war 26:47 two like and my grandparents that it's a 26:51 world war one and the Depression years 26:54 and in Germany the hyperinflation years 26:57 that one disaster after another like in 27:00 the 20th century 27:02 so after World War Two they were of 27:06 course financially extremely 27:08 conservative in my family nobody ever 27:11 borrow the money they save when they 27:15 have enough savings they both the car 27:16 whatever it is they would never have 27:19 dreamed to back I anything on the oven 27:21 tried to know who died but this has 27:24 changed it mentality and also the whole 27:28 entitlement mentality each time 27:31 something happens or the government 27:33 should help me 27:34 well you want freedom you have to accept 27:38 personal responsibility if you're not 27:42 prepared to have your personal 27:44 responsibility that you should go and 27:47 live in a socially country like the 27:51 United creeping in Europe and in the US 27:55 yeah but are we a socialist country now 27:59 I mean front-end purposes of the money 28:02 is absconded from the productive and 28:05 then giving out to political political 28:08 favors and for those people who are 28:10 producing nothing government although 28:12 about growing anymore but people who 28:14 work for the government artifact not 28:16 producing anything it should even be 28:18 included in the employment certificate 28:21 such as a participatory it was you i 28:24 don't think that government spending 28:26 should be included in their gdp it 28:29 should be deserted Jonathan I also 28:31 believe it 28:32 we don't have a socially system the way 28:37 we had it in the Soviet Union and in 28:40 china and vietnam and nice and Europe 28:43 following the second world war in Russia 28:47 things 19 28:48 again but we have the worst combination 28:53 we have crowding capitalist imagine you 28:56 think it before and unless a large 29:01 business man becomes kind of and in 29:05 entangled with the government 29:08 he's an actor disadvantage is almost 29:11 forced to have lobby for hidden and to 29:15 do things for a mother wise legislation 29:19 may be unfavorable garden so we have 29:23 crony capitalist along the one hand and 29:26 i have to say this your listeners should 29:30 pay attention to the Federal Reserve and 29:35 other central banks they have finance 29:40 the expansion of government becoming 29:43 bigger and bigger correct and the best 29:46 girls and the Texas ink and then you 29:49 have more and more regulation and the 29:53 more and more Harrison's of the small 29:55 business land and the larger the 29:58 government this you've seen all these 30:00 studies productivity is not rising much 30:03 is the productivity improvements are 30:07 very disappointing 30:08 this has to do the picture the 30:11 government's the less productivity 30:12 growth story right 30:14 no you know it's it's a nice side i said 30:19 this he gave the story after relay the 30:22 story i might show so many times I'm 30:23 sure and if people hear it one more time 30:26 that's not hang up but you know like my 30:28 father came here from the old country up 30:31 with not a dime in his pocket and he 30:34 complained all of his life that the 30:37 biggest mistake he ever made was 30:39 borrowing fourteen dollars from the 30:42 future mother-in-law because she really 30:45 never c never made him forget it and do 30:52 you know that on his deathbed he was 30:56 still complaining about that 30:59 my kitties biggest mistake I ever made i 31:01 said please take area simply relax you 31:04 know for weapons 31:05 you know he's still complained about 31:06 that and I i'm reminded of that of 31:09 several times daily when I meet people 31:11 and I see the when i watch television I 31:14 see the way people handle money handle 31:16 themselves their lifestyle i think 31:19 either I'm the lunatic all the whole 31:21 world has gone crazy but I don't 31:23 identify with you and i will give you an 31:27 argument that someone rate the other day 31:29 with need that 31:30 well you know zero or negative interest 31:33 rates are very good because they 31:36 stimulate huge innovation now the nasdaq 31:41 bubble was a deliberate creation of this 31:45 island green then I noticed from a 31:47 former fake voting member Greenspan 31:53 thought that by creating an abstract 31:55 bubble it would fuel innovation it was 31:58 which to some extent is true but the 32:02 other than when you take economic policy 32:04 measures you have to look at all aspects 32:08 right 32:10 each policy measure may have some 32:13 beneficial impact some but huge negative 32:18 impact both American families the median 32:23 American wealth in america is lower than 32:26 it was in the of themselves because 32:28 bottles and rich a few wall street and 32:32 in poverty is the majority already 32:36 observed by the famous American economy 32:39 is irving fisher he in poverty the 32:43 majority white how many families have 32:46 went to Atlanta after the housing bubble 32:49 actually try and feel the home where 32:53 people were addicted to have children 32:55 the children went to local schools and 33:00 these families were kicked out of their 33:02 own you think it's fun 33:04 they think it's nice thing to do days I 33:07 make the Federal Reserve responsible and 33:10 by the way 33:12 who was responsible for the greatest 33:14 housing bubbles California never had 33:18 this right and you know and i think also 33:23 the Florida was begging the net 33:26 yeah but Yellin was in charge of the 33:29 faith in San Francisco president always 33:32 say yes and divided the street makers 33:37 housing bubbles where yet California 33:40 Arizona and Nevada she was in charge of 33:43 those big break is the money friends of 33:47 X alone 33:48 oh i see well up with will vary running 33:52 that number one clown that's everyone 33:54 cloud cake with we're running close to 33:59 the end of our shape but I before we 34:01 before we signed off i'd i'd like for 34:04 you to look into your crystal ball just 34:06 polish it off if you can and tell us 34:08 what do you how do you see things 34:10 unwinding obviously it cannot go on 34:13 forever this business 34:15 mother nature always has a way of coming 34:17 back and saying okay guys you had your 34:19 fun now we're going to correct 34:22 everything and those people you know who 34:25 were playing the game are now going to 34:27 suffer a little bit because you have too 34:29 much fun 34:30 mother Nature has a way of always 34:31 neutralizing everything 34:33 what is what is your take on how do you 34:35 see this whole thing unraveling 34:37 well I think when things will go back 34:42 they'll print more money and the wind up 34:46 of them held that maybe social unrest 34:49 before what nation frequently have done 34:54 he said they started to take money away 34:57 from the rich you know we talked about 35:01 this wealthy people before i would say a 35:06 lot of wealthy people they haven't done 35:08 anything terribly wrong 35:10 it's the federal reserve that made them 35:13 rich your return because my federal 35:15 reserve with their easy monetary 35:17 policies bullshit asset prices you know 35:21 had that you don't benefit if you 35:23 already have money home and 35:25 start the bonds you benefited enormously 35:27 and I believe these people including to 35:32 some extent you and me whoever assets 35:35 you said you have your studio we will 35:37 lose money 35:39 some will be taken away from us when 35:41 taxes for higher taxes on incomes or 35:46 capital gains or they can introduce well 35:50 seconds every day strike two percent of 35:53 all the wealth from the rich boy it's 35:55 not going to help but satisfies the 36:00 unrest among the people it will be a 36:03 measure that population governments will 36:05 do numbers trees i think there is the 36:09 possibility and that it's very clear 36:13 that we have arise in international 36:17 tensions very clearly and partly because 36:23 the u.s. is unreasonable about the rise 36:27 of China is clear that the Chinese what 36:31 do have some security in the south of 36:33 these China Sea which to us that the 36:36 TrueView about the worse the US and NATO 36:40 also Harris 14 i'm not saying that booty 36:44 needs a nice guy but your advance for 36:47 Russia Ukraine ear is of paramount 36:50 importance has zero value for the US 0 36:55 value from 800 irrationally that value 36:58 so that is calculated there they 37:01 miscalculated about the whole eastern 37:03 Ukraine which is east of the effort and 37:08 the tensions are actually quite happy in 37:10 the Middle East we have essentially a 37:12 completely right treatment and how it 37:19 all will end I don't know 37:21 oh but i would hold some precious metals 37:24 basically physical born 37:25 okay well you know what i was when i was 37:28 growing up in Harlem New York you know 37:31 if you eat the Warlord's were always 37:34 guys who want to stay on the right side 37:36 of you know you didn't want to be 37:39 the wrong side of somebody who was the 37:40 head of the gangs of new york and stuff 37:42 like after and and so to me I would 37:46 think you know if they're if we should 37:48 have one friend in the world it should 37:50 be Russia if we should be our enemy we 37:53 should trade trade with him like a crazy 37:56 of I was second best rate should be 37:58 China out third best friend should be 38:01 india thought should be brazil i mean 38:03 this is the way I would do things but it 38:06 seems you know something you can really 38:07 do 38:08 yeah i mean the other culturally Russia 38:12 was much closer to Europe then to any 38:15 other region in the world right and we 38:18 Europeans you could ask any German 38:21 ninety percent of German do not 38:24 understand the policy of Angela Merkel's 38:27 most people in Europe they believe that 38:30 actually she's being blackmailed 38:32 practice CIA or somebody 38:35 yeah because of our path yeah but we 38:37 don't understand because in the 19th 38:41 century until the beginning of the 20th 38:44 century Russia water was with Germany 38:49 and with the Austrian Empire of three 38:54 and Hungarian Empire not with Poland it 38:57 exists at that train didn't exist and so 39:00 culturally europe and russia were always 39:03 very close but i tell you i don't 39:07 understand we have these interventions 39:09 you call yourself Liberty radial we have 39:14 been eventually these are people who 39:17 believe that they are kind of superior 39:21 that they know better 39:23 perfect ordering people they may have 39:27 more education they may have gone to 39:29 Harvard but it doesn't make them smarter 39:32 or more intelligent teaches where they 39:35 just paid the IP to these universities 39:38 anyway thank you for your time 39:41 well let me give you the last just last 39:44 minute of the broadcast 22 of alert our 39:47 but listeners how they may reach you if 39:50 you like 39:51 oh that you're with hugs something about 39:52 your website i'll let you close it out 39:54 and but before we do I wanted I want you 39:57 to know that we're honored to have you 39:59 on our program and we do hope that you 40:01 will accept that invitation to return at 40:04 a later date 40:05 yes thank you very much okay nice 40:07 talking to you 40:08 the website is grown boom to not come i 40:12 repeat gloom boom do not come that 40:17 you're okay thank you mr. Farber hope to 40:19 hear from you again thank you so much 40:21 focus as the end of today's broadcast we 40:23 like to thank our sponsors for the 40:25 financial supporters like to thank you 40:26 for listening in 40:27 you can further the cause of liberty by 40:29 recommending this program to your 40:30 friends and let us hear from your email 40:33 justice comments at Woodstock radio.com 40:34 remember you're either allowing your 40:37 liberties to be taken away or you're 40:38 striving to protect them

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.