Marc Faber: China is growing 4% max; Greece on the Brink

 With only two weeks left until Greece’s current bailout program expires, Eurozone finance ministers will take another stab at hammering out a deal between Greece and its creditors on Monday. The talks on Monday are key because they’re the last chance for the new Greek government to ask for a technical extension of its current bailout program, which runs out on February 28th. Erin weighs in.

Then, Erin is joined by Marc Faber – editor and publisher of the Gloom, Boom & Doom Report and director of Marc Faber Ltd. Marc gives us his macro view on China and the industrial commodities space. In China, Marc believes the real GDP growth rate has slowed to 4%. On the commodities side of things, he believes that the high cost of production will eventually lead to a price resurgence. But he says there will be pain in the short run. Faber also opines on the expensive US market, IPO foibles and the increase in bonds carrying a negative yield. His biggest warning is a 50% correction in shares.

After the break, Boom Bust Producer Bianca Facchinei sits down with DC Council Chairman Phil Mendelson to discuss how a government spending bill has halted Initiative 71 – a ballot initiative on legalizing marijuana in the District of Columbia – from proceeding, even though voters already approved of it.

And in Defining Moments, our guests give us their takes on oil, Greece, and quantitative easing. Guests include Steve Keen, Richard Werner, Frances Coppola, Reggie Middleton, John Brynjolfsson, and Jim Pearce. Take a look!




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.

Why the Dollar’s Reserve Currency Status is America’s “Achilles Heel” by Marc Faber

Ned Goodman (born in 1937) is a successful entrepreneur (by background a geologist) and a philanthropist who also happens to be a billionaire, thanks to his Dundee Group of Financial, Resource and Real Estate Investments, which he founded in 1991.

He is also a deep thinker, and a man with common sense and a vast knowledge. Every year, Goodman airs his insightful views in a lengthy paper (the 2013 write-up was over 90 pages) published as part of Dundee’s annual report. In the 2013 report, he explains:

    In Dundee’s initial Annual Report for the year 1991, dated May 11, 1992, I wrote that our investment philosophy encompassed fundamental principles and was totally oriented toward value. I stated that it was essential that we understood the business before we invested, and that we looked to purchase assets that were likely to increase in value by at least 150% over a five-year period.

We knew from past experience that we must understand how to sell before we buy, and that always requires the establishment of a selling target along with a plan of action for achieving that target… The Clarkson Centre for Business Ethics and Board Effectiveness (CCBE) report of 2013 showed that we were able to achieve a 20- year share price return of 18% per annum for our shareholders, while increasing the market price of our stock by more than 30 times over that period. I can assure current shareholders that not one part of our process and philosophy has changed since 1991…
Read more @ http://dailyreckoning.com/dollars-reserve-currency-status-americas-achilles-heel/



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.

Marc Faber : Putin Did The Right Thing

Marc Faber :     Mr. Putin did the right thing from his perspective. We have to look – put ourselves into his shoes. He did absolutely the right thing at the right time.

    ...By that I mean that there was interference by foreign powers in Ukrainian politics that were unfavorably from the perspective of Russia.
    ...The Crimea is strategically most important for Russia. It has practically no meaning strategically to the United States or to Europe. But for Russia it’s very important. I don’t think that Russia will move further into Ukraine unless there is serious provocation. But I doubt it will happen. But I think the wider implication is that we have now border lines. In other words, the US would intervene if a foreign power would establish bases in Haiti and in Cuba and so forth and so on, and the Chinese will react if foreign powers threaten Chinese access to resources.

         This is very important because the occupation or say the referendum (ph) in Crimea and Crimea moving to Russia gives essentially a signal to China that one day they can also move and seize some territory that they perceive that belongs to them.







March 17 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for China's economy and commodity prices. Faber, speaking with Trish Regan and Matt Miller on Bloomberg Television's "Street Smart," also discusses on Russia's placement of troops in Crimea. (Source: Bloomberg) 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.

Marc Faber Prefers Physical Gold & Silver to Bitcoin

Marc Faber told Bloomberg TV in an interview that, "I prefer physical gold and silver, platinum to bitcoin. How do you value a bitcoin? I can value gold to some extent and compare say gold to the quantity of money that is floating around the world, to the wealth increase, and to the monetary base increase, to the credit increase, and so forth and so on, and to the production costs. So I have an idea of where gold should be.”

- in Bloomberg TV : Click here to watch the full interview >>> 

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.

The Financial Crisis Was No Accident By Marc Faber

As a distant but interested observer of history and investment markets I am fascinated how major events that arose from longer-term trends are often explained by short-term causes.

The First World War is explained as a consequence of the assassination of Archduke Franz Ferdinand, heir to the Austrian-Hungarian throne; the Depression in the 1930s as a result of the tight monetary policies of the Fed; the Second World War as having been caused by Hitler; and the Vietnam War as a result of the communist threat.

Similarly, the disinflation that followed after 1980 is attributed to Paul Volcker's tight monetary policies. The 1987 stock market crash is blamed on portfolio insurance. And the Asian Crisis and the stock market crash of 1997 are attributed to foreigners attacking the Thai Baht (Thailand's currency). A closer analysis of all these events, however, shows that their causes were far more complex and that there was always some 'inevitability' at play.

Credit Rate Spiking Fast

If we take total credit as a percentage of the most advanced economies, then total credit of the economies is now 30 percent higher than in 2007 when the last crisis occurred. 

Similarly in China credit as a percentage of the economy has been growing the last few years by 50 percent. This is unprecedented. It is a gigantic credit bubble. I admit it may go on but it will end badly.

 

Marc Faber

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber Bullish about some European Telcos

"At the present time, I think that Europe has had a very good move from the lows. It outperformed the U.S., and I would be a little bit careful to buy stocks indiscriminately at the present time because everything has moved up significantly. There's a lot of bullish sentiment," Dr. Marc Faber told CNBC Fast Money yesterday said.
"But in general, I like selected European companies because their business is international and their exposure to Europe is not all that large. Maybe 40 to 50 percent of their total sales are in Europe, and the rest is overseas. Faber said that he owned stock in telecom companies, utilities and blue-chip companies in Switzerland. He also disclosed that he was holding on to 10-year Treasurys and adding to his gold positions.- in CNBC FastMoney 19 Nov 2013



 

Marc Faber

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber : Capitalism is at the End

( summarily translated from German ) According to legendary investor Marc Faber , we already live in a financial economy in which the debt and capital markets exceed the value of the real economy by far . And that's befeuere the formation of bubbles. Bursts it the next time , then this is the capitalist economic system as we know it, shaken bringen.Die numbers speak for themselves: In 1980, the market capitalization of the U.S. stock market was less than 40 percent of gross domestic product ( GDP). The debt , measured in credit markets , was about 130 percent of GDP. Today these figures are higher , according to Marc Faber many times : The market capitalization has reached over 100 percent of GDP , the debt about 300 percent. This is consistent with figures from the consulting firm McKinsey. After calculation, the global debt still stood in 2010 at 158 ​​trillion. In 2012, there were already $ 200 trillion - and rising. This makes for a worldwide economic power of slightly more than $ 71 trillion about three times .

It is a powder keg on which we sit . In a normal real economy , said Marc Faber sets now in a current on the website "The Daily Reckoning " published contribution that the debt and equity markets are small - and there in order to steer the accumulated capital into investments. Net interest acts as a regulator . That is, there are only those made ​​with the capital investment that is truly an attractive return , so a higher yield than fixed-income investments bring .

Speculative bubbles encourage innovation

Marc Faber: Crude Oil is probably among the most attractive Commodities because the supply of Oil could be interrupted at some point

ET Now: Crude of late has been slightly toppy. Are you still bullish on crude?

Marc Faber: Yes, crude oil is probably among the most attractive commodities because the supply of oil could be interrupted at some point. I am aware that the production in the US and Iraq is going up, but by and large in order to bring on new oil reserves today, the price has to be, say, above $80. So we are not that far above production cost at the present time.  - in ET NOW Click here to watch the full interview >>>>

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

This is How You Teach your children about Inflation

Marc Faber : Buy a $100 U.S. bond and frame it to teach your children about inflation by watching the U.S. bond value diminish to almost nothing over the next 20 years.

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

If you Print Money like in Zimbabwe , you will end up in a Civil War

Marc Faber : If you print money like in Zimbabwe... the purchasing power of money goes down, and the standards of living go down, and eventually, you have a civil war.


Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber: The Physical Gold Investment & the Importance of China

Source : WiWo (summarily translated from German)
Marc Faber the prestigious Swiss financial guru and publisher of The Gloom Boom & Doom Report suggests that the Chinese yuan is a serious competitor to the U.S. dollar and as a hedge against extreme situations Swiss guru recommends investing in gold . " Owning physical gold is my insurance against crimes committed by governments. An insurance against failed states or hyperinflation , " Faber says adding that governments will never admit that they made a mistake, but rather look guilty .

Marc Faber says the Fed for 20 years a policy of monetary expansion and interest rates have been kept artificially low , practically zero percent today . " The artificially low interest rates and bond purchases have skyrocketed the prices of stocks and real estate. But the economic impact has been relatively small . Milton Friedman's " Capitalism and Freedom " wrote that the problem with government programs that implemented , is always initiated due to an emergency , but not abandoned when it ends . Therefore, the state increasingly inflated , and the Fed , he is becoming increasingly difficult to end this policy. "
Faber believes that in Malaysia , Thailand , Hong Kong , Singapore , there are many stocks that have a dividend yield of five percent . Also considered interesting the Vietnamese market . Japan on the other hand not enthusiastic , but believes that the Nikkei would work better than other markets.

"We are going through a sideways market . It was the same in the seventies , early in my career , but there are opportunities. Some industries developed greatly in this sideways market . "

On investment in China noted that " China's rise is amazing. Just look at what China does in Africa , build bridges in six months, while the World Bank takes six years. What Chinese companies now offer not provide any American or German . They work in the Gobi Desert , with three shifts at minus 20 degrees . His speed and ability to sacrifice are unique. This does not mean it will always continue so also do not think the current statistics . "

"China actually grows to a maximum of four per cent per annum. And in recent years , have extended the debt. With a large amount of money can always inflate growth. This is not only a problem that is of in China. The same has happened in the U.S. since the early eighties. Just calculate how much it has only increased U.S. consumer debt during this period, which downplays the growing tremendously. But you can not keep playing forever. "

Faber says that " In many sectors of the global economy , China is now more important than USA . The U.S. economy depends heavily on the service sector. But if China demanded fewer raw materials affect everyone . Each time you use more the yuan in trade as freely convertible currency , will become a serious competitor to the dollar. "




Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

This is Why Marc Faber Likes European Telcos

You're a fan of European telecoms. Why?
 
Marc Faber : European stocks generally have underperformed emerging markets, and emerging markets have underperformed the U.S. for several years. When you buy many European shares, you're not buying European businesses. French companies in the CAC 40 index generate about 50% of their earnings outside of France. Most of the earnings of LVMH Moët Hennessy Louis Vuitton [MC.France] -- I'm not recommending the stock but using it as an example -- come from Asia. European telecoms, on the other hand, are less international. They are cheap utilities, and a cheap play on Europe. - in Barron's

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

I Would Not Buy US Stocks at These Levels

 "I think the markets will move according other events rather than what is happening in Washington,"
"We're coming into earnings season, and the earnings are likely to disappoint,"
 "the market is not cheap anymore, according to different valuation methods,"
 "the returns over the next five to 10 years will be very moderate,"

"the technical are concerning,"
 "There are very few stocks that are making new highs," Faber said. "The majority of stocks have been moving sideways to down over the last six months. Some stocks, like IBM, are no higher than they were in 2011."






Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber Warns : China Crisis will be worse than US Shutdown

Marc Faber: Crisis in China is only a matter of time , China heading for Crisis more Serious than US Shutdown

Marc Faber :  ‘I am leaning towards the view that China is heading for a crisis. The question is whether they can postpone the problems with fiscal or monetary problems for a year or so,’ 

Maybe in China they can postpone a crisis for a while but when you look at the expansion of debt to GDP of 50% over the last couple of years, clearly that is not going to be sustainable for a long time.

People are so concerned about the fiscal problems in the US but I think these are relatively minor compared to what would happen to the world if China had a crisis,'  - in Citywire

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

China is heading for a Crisis says Marc Faber

China’s debt is approaching critical levels and a crisis could unfold within a year, renowned investor Marc Faber told Citywire Global.
Rather than focusing on the spat between politicians over the US’s fiscal policies, people should be more concerned about developments in China, said F
aber.‘I am leaning towards the view that China is heading for a crisis. The question is whether they can postpone the problems with fiscal or monetary problems for a year or so,’ he said. - in CityWire

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber Warns We Are in a Sideways Market

Q: The turnaround in interest rates in the United States has failed, the Fed continues to print money. Is that good for stocks?
Marc Faber : The Fed operates in 20 years a policy of monetary expansion.After the collapse of LTCM in 1997, after the collapse of the Nasdaq and after the real estate crisis, interest rates were kept artificially low - at virtually zero percent today. In March 2009 the U.S. stock index S & P 500 reached its nadir with 670 points. Now we are at 1700 points - a tripling! The artificially low interest rates and bond purchases have reduced the prices of stocks and real estate driven up. But the economic effect was relatively small.Milton Friedman wrote in "Capitalism and Freedom": The problem with government programs, they can always be started due to an emergency, but not abolished, when the emergency is over.Thus, the state is getting more bloated. For the Fed, it is becoming increasingly difficult to end their policy. And if they still do it one day, what will happen to the stock market?

Q: Which markets are still interesting because for stock investments?Marc Faber : If you press me 100 million euro in the hand and say that you have to invest in stocks, then I would probably select emerging markets, which has dropped so dramatically lately. Malaysia, Thailand, Hong Kong, Singapore - there are plenty of stocks that have a dividend yield of five percent. That's not huge, but still signaled that the cash flow of the company is okay. The Vietnamese market is interesting. Japan was not thrilled me, but the Nikkei could run better than other markets.

Q: Sounds underwhelming.Marc Faber :  We are in a sideways market. This was back in the seventies when I started my career like that. Nevertheless, there are of course opportunities. Some industries developed tremendously in this sideways market. Did you have gold or energy stocks, you were rich.

- in http://www.wiwo.de/finanzen/geldanlage/marc-faber-physisches-gold-als-versicherung-gegen-unfug/8884908.html

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

All Bull Markets Must End

Every bull market must end at some point and the US market has rallied hard the past year. If you believe the market may have peaked momentarily, you have company in the name of Dr Faber. "We are in a bull market that is in the tail-end instead of the beginning but that does not mean prices will collapse. I don't think that stocks are the greatest bargain anymore."

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber : U.S. Is Creating Nowhere-to-Hide Bubbles

March 27 (Bloomberg) -- "Gloom, Boom and Doom Report" Publisher Marc Faber discusses U.S. stocks, fiscal policy and the price of gold. He speaks on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)Marc Faber : “When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn’t flow evenly into the system. Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession. More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S. So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide.”

Marc Faber, I see a boom everywhere except for the working class

May 25 (Bloomberg) Marc Faber : ..recession in China could be a technical recession , if you go and slow down from a growth rate of say ten percent to a growth rate of three percent then there is a recession , also I do not believe in the growth rate that China publishes , because if you had adjusted nominal GDP for the true rate of inflation then real growth is of course much slower , you know I want to tell you something that disturbs me in all emerging economies and in many other developed economies , from my taste in front of luxury hotels there are far too many Ferraries and Maseraties and Bentleys and this is not a good sign , you should see depression when conditions are depressed . I see a boom everywhere except for the working class and except for the lower middle class , but among the well-to-do people the wealth that is floating around and the prices you pay for high end properties is incredible and I think that will come to an end and a lot of people will lose a lot of money and so I am ultra careful at the present time ....." Marc Faber interviewed by Bloomberg TV May 25 2011 : Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for China's economy. Faber also discusses the U.S. economy and budget deficit, and his investment strategy