Marc Faber Video: Middle Class Consumption in Asia and the Emerging Markets

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.

Marc Faber trolls CNBC over fiscal cliff and economic optimism

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.

Marc Faber’s Beliefs About Gold

Marc Faber is one of the very successful investors on earth. He recently explained his view on the monetary policies of the developed regions in the world. Obviously he is no fan of the Keynesian way of thinking which is applied by the central banks in the developed regions.

The Keynesian policy considers easy money as a way out of economic recession and deflation. They argue that money creation smoothens out the business cycle. In his presentation, Marc Faber demonstrates that these kind of interventions achieve exactly the opposite: they make the business cycles much more violent, create extreme fluctuations in economic activity and result in far more financial volatility. In his opinion, the essential problem is that the Keynesian way of thinking tries to solve long term structural problems with short term fixes, with an emphasis to create bubbles to help the economy. However, Mr Faber notes that bubbles usually hurt the majority of market participants.

Based on the US Fed philosophy you can’t identify bubbles, but if they burst you can take measures to support asset prices by flooding the markets with liquidity (read: by “dropping dollar bills from an helicopter” in order to prevent deflation). In line with that way of thinking, the Fed has slashed interest rates and created liquidity over the last 30 years on a continuing basis.

“Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors.”

Marc Faber believes that these policies have one big problem: central banks simply cannot determine what will happen with the money that is created. The key point is that inflation does not necessarily occur in wage inflation or in consumer prices. The additional liquidity however can create unpredictable sorts of inflations. For instance, it can result in a housing boom in country X, or in employment wage inflation in country Y, or in commodity price inflation in country Z. Furthermore, not every price increase will occur at the same rate, with the same intensity, at the same time. Those are the “unintended consequences” of money printing, which Marc Fabers discusses in detail with a lot of examples in his presentation.

“High monetary inflation brings distortions in the price mechanisms and volatility.” One of the examples Mr Faber used in his presentation is the Mexican deflation, in which the currency debased sharply against eg the US dollar between 1979 and 1983. From the lows in 1983 till its highs in 1988, the Mexican equity market in US dollar increase 44-fold!

Marc Faber his conclusion: money printing brings more and unpredictable volatility. We saw a major low in equities in March 2009 which we probably won’t see again because “every drop” comes with a new round of QE. Going forward, he believes that owning GOLD is a must for every individual and investor. Gold is not in a bubble as we haven’t seen rapid acceleration of prices (as an example, look back at 1979 where the gold price doubled in 3 months).

Source: marcfaberblog.com/marc-fabers-beliefs-about-gold/

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.

Marc Faber: Krugman and Central Planners Should Move To North Korea

In a new film called "The Bubble", Faber criticizes the Federal Reserve and U.S. Dollar

New York, NY - Famous investor Marc Faber is featured in a new film about the ongoing financial crisis. Faber is one of many interviews in “The Bubble”, a documentary that interviews the experts that predicted the 2008 crash and asks what happens next. Other cast members include Jim Rogers, Peter Schiff, Ron Paul, Marc Faber, Doug Casey, Jim Grant and numerous others. The script is written by Dr. Tom Woods and based off his New York Times best seller “Meltdown.” Renowned bearish investor David Tice is the Executive Producer.

 In the film, Faber says that the global economy is decelerating very rapidly. He said, “In my view we have too much debt in the household level, the student level and the government level.” Faber predicted deficits over a trillion dollars in America for the next 10 years. He says this will will hurt economic growth immensely. “I'm ultra bearish on paper money.”, said Faber. “There is a bubble in government bonds. People will realize that their money will lose purchasing power and will no longer trust to buy government bonds, notes or bills.” Faber's views on government debt are linked to inflation. He said, that consumer price increases around the world are much higher than what the government is reporting. In the U.S., Faber estimates that consumer price levels are rising by 5 to 8 percent annually. The interview has some interesting quotes from Faber that might be surprising to some. He made his distaste of Keynesian economists and central bankers clear by saying, “ Krugman thinks the fiscal deficits are too small. One of the problems of the crisis is that it was called by government intervention with fiscal and monetary measures. Now they tell us we didn't intervene enough. Yet, if they really believe that, they should go and live in North Korea where they have a communist system.”

 The raw footage of the interview is available online at http://www.TheBubbleFilm.com. Updates about the film, including information about its upcoming release, can also be found at http://www.Facebook.com/TheBubbleFilm.



 Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.

Marc Faber: To prepare for a massive collapse pazaren

Markets will collapse soon, so stay tuned shares lose 20% of its value, warns Marc Faber, author of the publication Gloom, Boom and Doom Report, said on CNBC.

"I do not think the market will collapse because of Greece and I do not think this will happen because of 'fiscal gap' as 'fiscal gap' will be," says Faber.

"The market is collapsing as corporate performance will start to disappoint and the global economy will be negligible growth next year and may even shrink. That's why I think the shares will lose at least 20% of the peak, which S & P 500 reached 1,470 points in, "he said.

Faber, who is known for his bearish views, an example disappointing results of Apple, who claim the company 20% of its market capitalization over the past two months and 14% in just the last month.

Series underperformance of corporations, including Amazon, McDonalds and Google, marred investor sentiment in recent weeks.

According to Faber 'fiscal gap' will actually increase the minimum tax "within five years" and some budget cuts "over the next 100 years."

U.S. needs a little pain to patch the budget deficit, he said. "There will be some pain to be completely controlled. The question is whether it will endure a little pain now or risk the complete collapse of society after five years, "says Faber, warning that political will to deal with the budget problems is lacking.

"In a democracy, they will not decide to let a little pain, so problems will be postponed until becoming bigger and bigger."

Faber identifies several problems that hinder the recovery of the U.S. economy and the real estate market, which he said had never been "built in".

Faber warned that it would take a serious reduction in debt levels.
"In the Western world, including Japan, the problem is too much debt. These debts must be done something, and fast, or else you will be forgiven for their growth, "he said.
"I think we spent more than we earned from 1980 to 2007 and now is time to pay," said Faber.
According to investor incentives taken by central banks are useless, and the only way to restructure the financial system through market implosion.
"I think the whole global financial system needs to be rebooted and that this can be done by central banks and by the implosion of the market - or money market or debt market or the stock market," says Faber.
"It will happen, will happen one day and then we would be happy if you still hold 50% of the value of the assets that we have now."

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.

Marc Faber Video: The Bubble Film Interview

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.