Marc Faber : We Are Already in a Recession

In a recent interview, Legendary contrarian investor Dr. Marc Faber warned that the huge asset bubble will be Deflated and we are already in a recession, saying, “Forget about the coming slowdown because the economy has already been backing up for months and we’re likely already in a recession.” Dr. Marc Faber, explained “When I started to work in 1970 on Wall Street, the stock market capitalization of the U.S. as a percentage of GDP . . . was between 25% and 30%. Now, the stock market capitalization alone is 150% of GDP, and when you add the bonds to it, we are at 300%. It’s a huge asset bubble compared to the real economy. I think no matter what they do, this asset bubble will be deflated, and it will be very painful. The asset holders are the powerful ones here, and they don’t want it deflated. . . . The question is would it have been better economically to go into the hospital in 2008/2009 and clean up the system rather than to essentially inject the sick patient with more opioids to keep him alive? It’s going to get much worse the next time it happens.” Economist and editor of the Gloom, Boom and Doom Report, continues explaining : Investors are relatively complacent. Nobody thinks a recession has begun. I think a recession in the US probably began in October/November of last year. If you define a recession as peak economic activity and subsequent declining growth rates that can turn overall negative in the process, I think this is happening now in the world. We are probably already in a recession.” The central banks, in my view, will continue to do more or less what they have done in the past, namely, print money.” It’s a huge asset bubble compared to the real economy. I think no matter what they do, this asset bubble will be deflated, and it will be very painful. The asset holders are the powerful ones here, and they don’t want it deflated … The question is would it have been better economically to go into the hospital in 2008/2009 and clean up the system rather than to essentially inject the sick patient with more opioids to keep him alive? It’s going to get much worse the next time it happens.” he added . Faber also expressed his concern about the rise of socialism in America. I can assure you that people who lived under socialism and communism in China, Russia and Eastern Europe, that is the last thing they want to go back to–the last thing. The Westerners, who have never experienced the devastating lifestyle under socialism and communism, are amenable to the idea. The millennials think the government should do more. They don’t know what that means. When the government can do more, it can do everything. They can have people build bridges in the desert where no bridges are needed to keep people busy, and that leads to a complete economic calamity.” Faber is right on about the Central Banks being the source of the problem. True consumer inflation is running 9-10% already while unemployment is 23-24%. The Fed killed the dollar and replaced it with the essentially worthless Federal Reserve Note that is only functional because the con is still on; worth about 2 cents on the actual dollar...I would say that’s a rather severe debasement fully accomplished and QE eventually produces hyper inflationary headwinds that will blow us all down. This is meant to terrorize the public into accepting communism, world government and cashless enslavement to the Banking System. Buy land? They will tax it until you can’t hold it. I hate to say it but this is war; The Globalist Central Banks have openly declared war on humanity. The Fed does NOT work for the American people. Its goal is to enrich those who own and control it. Period.







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.