Wednesday, June 12, 2019

Marc Faber: The Coming Pension Crisis And Its Subsequent Fallout


Returning SBTV guest Marc Faber, editor and publisher of “The Gloom, Boom & Doom Report”, warns about the under-funding in public and private pensions. 

Will there be pitchforks when pensioners realize there is no money available for their retirement?

- Source, SBTV

Thursday, June 6, 2019

Marc Faber: What should a Turkish investor do?

After successfully anticipating the 1987 Wall Street crisis, world-renowned investor Marc Faber, nicknamed kanal Doctor Doomsday ', answered the questions of economy journalist Erkan Öz in the Real Economy program on Youtube.

Faber made evaluations about the future of the world economy and Bitcoin.

Faber on the strong appearance of the dollar; While Central Banks like Europe, China and Japan are printing money, the Fed is going to shrink the balance sheet, and in this case, the Dollar remains relatively valuable against other currencies, but US President Donald Trump is not happy with the situation. Or Trump thinks the Fed is making a mistake. Who knows, maybe Fed has made a mistake. Kim

Faber said there was a significant slowdown in the global economy, a similar slowdown was observed in 2015, but this recession did not follow a recession, but this time he saw a high recession. He considered the possibility of recession as ın a higher probability than many people believe Res.

He said the Fed believes it will lower interest rates and that if the exchange rate falls by 10 percent, they will do so.
If you are in Turkey, you may need to keep more horses and silver

Faber reminded that the German economy was in trouble with the inflation between the years 1919-1923 and the Germans, who kept gold and silver in their hands, were lucky. Faber emphasized that he lost most of the population during that hyperinflation period and therefore bölüm It may be a good idea to keep gold and silver ett.

"The question is how much (gold and silver) should keep?" He reminded Faber, "If you live in Turkey, according to those who live in Switzerland or Japan may need to hold a larger amount," he said.

Faber also loved gold, but the central banks of the world compared to the amount of money in gold, silver and platinum performance could not be expected to draw attention.

renowned experts said that investors should be ready to diversify geographically, "If you are in Turkey and Turkey in all of your money if you are in an're more vulnerable to losses in value against the Turkish lira," he said.

Faber emphasized that it would be easier for investors to F hedge orsa themselves in a possible downtrend if part of their portfolio is located in the US, European or Asian markets.
”Bitcoin can become standard“

Faber said that he believes that 20-30 years later, the current children would not use paper money, he said:

Ebilir Blockchain technology is very interesting and Bitcoin can become a standard here. It's worth playing with a small portion of your money.

- Source, Paraanaliz

Friday, May 31, 2019

BITCOIN Bitcoin runs past Stock Market in early half of 2019

In terms of increased valuation and competitive growth, Bitcoin [BTC] has been one of the stand-out performers of this year. The digital asset witnessed major price surges which resulted in a massive hike, breaching the $8,000 range for the first time since August 2018. The digital asset also managed to reform the opinion of former critics of Bitcoin, such as Marc Faber and Mark Mobius, who had earlier criticized the functionality and value of Bitcoin from an economic standpoint.

The improved development can also be verified in terms of numbers and market comparison as Anthony Pompliano, CEO of Morgan Creek Digital recently shared a tweet which demonstrated the early half performance of Bitcoin.

In terms of increased valuation and competitive growth, Bitcoin [BTC] has been one of the stand-out performers of this year. The digital asset witnessed major price surges which resulted in a massive hike, breaching the $8,000 range for the first time since August 2018. The digital asset also managed to reform the opinion of former critics of Bitcoin, such as Marc Faber and Mark Mobius, who had earlier criticized the functionality and value of Bitcoin from an economic standpoint.

The improved development can also be verified in terms of numbers and market comparison as Anthony Pompliano, CEO of Morgan Creek Digital recently shared a tweet which demonstrated the early half performance of Bitcoin.


Pompliano laid out a comparison between the stock market and Bitcoin, where it was observed that the stock market market cap was up by 12 percent in 2019, whereas Bitcoin exhibited a staggering 111 percent growth since January 1, 2019.

It was observed that the surge was particularly dominant between April and May, when the prices of Bitcoin improved by almost $2,000.

- Source, AMB Crypto

Thursday, May 16, 2019

Marc Faber: All Fiat Currencies Will Collapse Against Precious Metals

I just wrote an essay about monetary inflation and the social impact of monetary inflation, because depending how the monetary inflation works through the system… in the case of hyperinflation, Germany in 1922, 1923, the middle class was essentially eliminated. They lost basically most of their savings one way or another. 

But the rich people made a lot of money. And I'm comparing it to the current time, where the middle class hasn't lost money per se, but because the rich people became so rich, the middle class has kind of been pushed down relative to the super rich people. That creates then an unfriendly environment.

The people that vote, they don't understand a lot. But it's very easy for a politician to go to people and say, "You know why you're not doing well? It's because of Jeff Bezos, he's got so much money, and because of Warren Buffet, he's got so much money, and Bill Gates, and so forth. And because of these hedge fund managers, they don't pay any tax or they don't pay much tax," which is actually true. The corporate world in America pays very little tax compared to individuals. If you look at the composition of tax revenues by the government, the bulk is paid by individuals, not by the corporate sector.

And so, through destroying wealth and income inequalities, the mood is in favor of taking money away from the wealthy people and distributing money to the ordinary people. And then they see, the ordinary people, how much is being spent on defense, in the case of the U.S., close to 750 billion dollars a year. And a lot of it is not accounted for. And they say, "Well, this money shouldn't be spent on defense. It should be spent on social programs," and so forth and so on. So the mood, towards socialism, especially we have surveys that showed the millennials, about 60% of the millennials, they are in favor of more government interventions.

The one thing I want to say, that everybody who lived through the monetary inflation of Germany - which ended up in kind of a hyperinflation, but I just want to explain - in the case of Germany, the hyperinflation was also made possible because the other countries didn't inflate. And so the mark depreciated against the foreign currencies, which then added to inflationary pressures. In the present state of monetary policy around the world, because everybody prints money, currencies don't collapse against each other, with very few exceptions like the Turkish lira and the Argentine peso and so forth. But basically, the major currencies, they trade against each other.

So where will the collapse of the currencies come from? In my opinion, they'll all collapse against precious metals. And it is conceivable, and this is something we just don't know, it is conceivable that they'll also collapse against some cryptocurrencies. Now, I think there is a chance, we're not sure - this is a kind of a theory - it is conceivable that Bitcoin becomes the standard, the gold standard of cryptos. But I'm not sure.

All I want to say, investors, in an environment such as we have of money printing, they need to diversify. They need to own some equities. We don't know whether these monetary inflations will end up with a deflationary bust, in which case you may want to own some U.S. Treasuries, or it could lead to high inflation, consumer price inflation, in which case you want to own maybe a farm or some properties overseas. Or you may wish to own some precious metals. I think in any scenario, you should own some precious metals. Or the question is, should you own 3% of your money in precious metals or 90%? That everybody has to decide for himself. I recommend about 20, 25% of your assets in precious metals.

And as to the question, which one is (likely to perform) best? I think platinum is the cheapest at the present time of the precious metals. And I think it has actually a favorable outlook. I think there will be a supply shortage, and that the price could significantly outperform gold and silver.

- Source, Marc Faber

Saturday, May 11, 2019

Marc Faber: The Dollar Should Weaken and the Stock Market Will Follow

I think the dollar is strong because many investors argue that the economy in the U.S. is either better conditioned than European economies. Who knows? But one reason the dollar has been strong is you have all these negative interest rates in Europe. In Germany the 10-year yield is now negative, and in Japan as well, in Switzerland as well. 

And in Spain you have interest rates on the 10-year government bonds of 1%, whereas in the U.S. it's 2.58%. So, I could argue it's logical that if you get more than twice as much interest in U.S. Treasuries than in Spanish bonds, and you're an insurance company in Europe, or sovereign fund in the world, you rather buy U.S. Treasuries than Spanish bonds. I think it's quite logical. So, I think that has supported the dollar.

But I personally, I think the dollar should in due course weaken, and as the dollar weakens it could also trigger weakness in the stock market.

The Chinese had all this excessive credit growth. Now you could argue, well, they have this excessive credit growth because they have also a very high propensity, or rate of capital spending to build apartment buildings and bridges and roads, and the whole infrastructure. 

This is very costly. And so the borrowings are very high. But whether China will go into recession or not is a question also, can in China some sectors be in a recession, like car sales are down this year, and other sectors continue to expand? It's a huge country. It's actually almost a continent with 1.3 billion people. So, different sectors will perform differently. 

But since I live in Asia, my observation is that there has been a slowdown in economic activity. We're not in a recession, but we're in a very low-growth phase. There's very little growth at the present time, and if there is growth it is because of borrowings… but that is also the case in the U.S. Without a trillion-dollar deficit and the debt build-up, student loans and car loans and everything, and credit card loans, the U.S. economy wouldn't be growing either.

- Source, Marc Faber via Seeking Alpha

Tuesday, May 7, 2019

Marc Faber: Currencies To Collapse Against Precious Metals

It's particularly complex at the present time because the global central banks, I mean the major central banks, they can argue, well, there is little inflation in the system, and so we can continue to print money or to purchase assets, which, either way, is true. There is little consumer price inflation, partly because the economy of ordinary people is not particularly good. 

We have a split economy. The economy of the well-to-do or extremely well-to-do people is doing well, and the economy of the ordinary people in Europe, in Japan, in the U.S., is not doing well. And so there is little inflationary pressure, but there is a lot of inflation, or has been a lot of inflation in asset prices. Stocks are at highs in the U.S. essentially, not the oil industries but several industries. And we have now 10 trillion-dollar worth's of bonds in the world that have negative interest rates, it's in some kind of a bubble, or a big bubble.

And so we have this asset inflation, and in my view, the central banks and the policy makers, they realize that if the asset bubble really breaks, if the stock market drops 20%, if home prices drop 20%, if bond prices go down 20% or so, the whole world is in a depression. So, I think that when they started actually in 2008, with QE1 in December 2008, and I was asked at the time, "How do you think it will end?" I said, "They just started QE unlimited. I think they will continue to print money until the system breaks." And that can take another few years.

But I think, yeah, it's likely, if you were to look at the political landscape, you have on the one end the Republicans, at the present time under the leadership of Mr. Trump. He wants to spend on defense and on his wall and on all kinds of things. And the Democrats, they also want to spend on all kinds of things. So, you can be sure that the deficit in the U.S. will remain around a trillion dollars a year for the foreseeable future. And in my view it's more likely that this deficit will go up, and possibly quite substantially. So, the money printing, in my view, will continue.

Now could you have QE, and at the same time the Fed raising interest rates? That is a possibility. But in the current environment, where the economy has been slowing down, I think they will rather do nothing, especially also under the pressure from the White House, which essentially accuses, or tells the world that if the Fed hadn't raised interest rates, the stock market would be much higher. So, I think they will not increase rates further. I think they will not cut the rates, as Trump and Kudlow would suggest, to simply show them that they're independent, and that they don't need Mr. Trump and Mr. Kudlow to tell them what to do.

- Source, Marc Faber via Seeking Alpha