Global Economy Weakening At An Alarming Rate

Marc Faber: Markets Are Manipulated by Clowns in Central Banks

Marc Faber on the Asian ‘boom’

Marc Faber, editor of the Gloom, Boom and Doom report, discusses “booming” market with Brian Sullivan.

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Marc Faber warns of major market decline

Marc Faber on economic ‘gloom’

Marc Faber, editor of the Gloom, Boom and Doom report, discusses what makes him “gloomy” with Brian Sullivan.

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Central Planning Can't Fix China's Economy

China Has Credit Bubble of Epic Proportions

Marc Faber on Market Collapse and the Stupidity of Central Banks

Jeff interviews investment adviser Marc Faber of the Gloom, Boom & Doom Report, topics include: central banking and inflation, commodities decline, QE4?, natural market adjustment, precious metals, China is the largest trading partner of 124 countries, interest rate hikes to small to have any influence, cheating the savers, massive government debt created by central banking and Keynesian fallacies, market drop to continue for 2 or 3 years, indexing and ETF's have distorted the average, everyone should own some gold, the US is now a service economy, neocon agenda believes US above everyone else, Paul Krugman asserts that debt is good, living in Thailand, TDV Groups, moving away from the western world and more...

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The Global Economy Is Entering An Epic Slump

Famed investor and author of the Gloom, Doom, Boom Report, Marc Faber, returns to the podcast this week to discuss the slowdown in the global economy, signs of which he claims are multiplying fast all around the world.

He predicts the next year is going to be an especially bruising one for investors, and recommends a combination of diversification and defense for those with financial capital to protect.

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Marc Faber: Markets have become very oversold near term

‘Gloom, Boom and Doom Report’ Editor Marc Faber on the market selloff.

Watch Dagen Mcdowell and Maria Bartiromo talk about Investing Basics and Stocks on Mornings With Maria.

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Faber: The Selloff Is a Signal Something Is Very Wrong

Marc Faber, publisher of the Gloom, Boom & Doom Report, comments on today's selloff in stocks. He speaks during an interview with Bloomberg's Joe Weisenthal and Alix Steel on "What'd You Miss?" (Source: Bloomberg)

Short the Hong Kong Dollar

Stocks Will be Lower By Year End

Faber said that if the stock market continues to drop further, the Federal Reserve may have to implement another round of quantitative easing.

Yet while Faber says stocks will be lower by the end of the year, he believes the market's recent bounce could continue.

"I think the market may rebound further, it was very oversold a week ago," he said.

- Source, CNBC

Faber: Given 2016 candidates, 'I have to be bearish'

For proof that the U.S. stock market is in trouble, look no further than the presidential candidates running for a place in the 2016 election, says Marc Faber, editor and publisher of the Gloom, Boom & Doom Report.

Faber, who has earned the nickname "Dr. Doom" from his longtime bearish stance on U.S. stocks, said most candidates are "relatively questionable" in integrity and quality.

"Going into the year end and the next year, I only have to look at the presidential candidates and then I know I have to be bearish," Faber said Tuesday on CNBC's "Trading Nation." "It's a pity that a country like the U.S., with so many highly intelligent and educated people, can only produce the kind of candidates we have."

A September national poll from Monmouth University shows Hillary Clinton as the front runner for the 2016 Democratic nomination by a wide stretch, followed by Joe Biden and Bernie Sanders. Leading the polls for the Republican nomination is Donald Trump, followed by Ben Carson and Jeb Bush.

While Faber admitted that he is not a close follower of American politics, he said Republican candidate Ted Cruz would be the best choice for U.S. markets to prosper.

"He's a relatively conservative person and that may be good for stocks," Faber said.

This is the latest in a series of somewhat unique reasons that Faber has provided for his long-held bearish stance on the U.S. stock market. For the past couple years, Faber has consistently predicted a stock market crash and U.S. recession, which have yet to materialize.

Presidential election aside, Faber said there are a lot more concerns facing the market, including an economic slowdown in China, falling currencies and trouble in the bond market as the Fed contemplates raising interest rates.

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It's A Tipping Point Marc Faber Warns - There Are No Safe Assets Anymore

Markets have "reached some kind of a tipping point," warns Marc Faber in this brief Bloomberg TV interview. Simply put, he explains, "because of modern central banking and repeated interventions with monetary policy, in other words, with QE, all around the world by central banks - there is no safe asset anymore." 

The purchasing power of money is going down, and Faber "would rather focus on precious metals because they do not depend on the industrial demand as much as base metals or industrial commodities," as it's now "obvious that the Chinese economy is growing at nowhere near what the Ministry of Truth is publishing." 

Faber explains more... "I have to laugh when someone like you tries to lecture me what creates prosperity"

- Source, Zero Hedge

Gold is a Hedge Against a U.S. Economic Collapse

The U.S. could be on the verge of an economic collapse and investors should start moving their portfolios into hard assets like gold and silver. At least, that’s according to renowned investor Marc Faber.

In a presentation at the CFA Analyst Seminar in Chicago, the popular market commentator argued asset markets are broadly overvalued and investors should be accumulating cash. To survive the looming financial crisis and economic collapse, the author of the Gloom, Doom, and Boom Reportrecommended investors keep a quarter of their portfolio in gold. (Source:Faber likes cash, says real estate and emerging markets equities to outperform, last accessed: July 29, 2015.)

“Gold is insurance if the banking system fails,” he said to attendees. “As an investor I’d like to own something outside the banking system, and that includes real estate, art and gold.”

For just a tiny glimpse of the role that gold will play in the event of a market collapse, look no further than China. The yellow metal rallied somewhat on Monday and Tuesday, with investors rushing at a safe haven asset as China’s crisis continues. This rush would turn into a stampede if such a crisis hits U.S. stock markets, as Faber predicts could very well happen.

“If our banking system goes through any hiccups, you want to have real estate, art, and gold in your possession, not bonds or treasuries. Gold prices benefit in times of uncertainty, and we are on the cusp of a major global financial crisis,” says Faber.

The gloomy economist is a staunch supporter of buying assets when they are undervalued, and gold certainly fits the bill at the moment. Whether you buy now or wait for it to drop lower in price is your call, but don’t miss out on the upswing.

While investors are looking for sound growth, higher interest rates, and diminished inflation, China remains the bullish wildcard in the gold equation. Its stock market crisis could very well spread globally, shifting demand firmly in favor of gold.

Still not convinced? Faber points to the extreme dissonance between real and virtual demand for gold, and how this will play out if another crisis hits.

Gold prices on international markets are dangerously out of touch with the physical realities of its physical supply. Futures markets inflate the supply of gold through virtual transactions which keep the price artificially low, while demand for actual gold is high.

Translation: when markets stop reflecting fundamentals, you can bet we’re in for a correction at some point. Don’t be caught on the wrong side of the equation when it happens.

- Source, Profit Confidental

Gold Is Insurance if the Banking System Fails

Marc Faber, publisher of The Gloom, Boom & Doom Report, says nearly all asset markets are overvalued so it’s best just to stash away your cash right now and you’ll be poised to buy when market bubbles finally pop.

But he does suggest allocating 25 percent of your investment portfolio to gold.

“Gold is insurance if the banking system fails,” he said at the CFA Analyst Seminar in Chicago in a presentation titled, “Inflating Asset Markets and Deflating Real Economic Activity? Strategies for Global Investors.”

“As an investor I’d like to own something outside the banking system, and that includes real estate, art and gold,” he was quoted by Pensions & Investments Online as saying.

He said real estate and emerging markets equities are better bets than U.S. stocks during the next five to 10 years.

He said Vietnam, Cambodia, Thailand and Laos are among the most promising regions for investment for the next 30 years. “In the absence of war, the area will be very attractive,” he noted.

He sees bonds as the most despised investment right now, but prefers U.S. Treasurys to European rivals.

Meanwhile, gold prices rallied from from five-year lows on Monday as investors returned to the precious metal after China’s stock market plunged. Gold futures rose $11.70, or 1.1%, to $1,097.20 a troy ounce on the Comex division of the New York Mercantile Exchange.

- Source, NewsMax

Faber Sees `Gigantic' Asset Bubble, Slowing Growth

Marc Faber on Stocks, The Markets and The Federal Reserve

S&P Falling by 20 Percent May Prompt QE4

China's Unwind 'Will Be a Disaster'

Greece Cannot Pay Current Debt

Gloom, Boom & Doom Report Editor Marc Faber discusses his outlook for Greece after the referendum. He speaks on “Bloomberg Markets.”

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Further Share Declines Coming

Marc Faber, Editor of the Gloom, Boom & Doom Report, says the Shanghai Composite could decline further to 3,200 points.

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Marc Faber on the global economy

Marc Faber, publisher of the Gloom, Boom & Doom report explains why he is so worried about China.

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Why stocks could drop up to 40 percent

Marc Faber, Gloom, Boom & Doom Report, shares his outlook on the markets.

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Marc Faber - Precious Metals And Some Cash Are The Safest Place To Be

Marc Faber Warn's "A Greece Will Come To Your Neighborhood Very Soon"

Marc Faber : We Are in the End Game - Economic Collapse

Marc Faber : We Are in the End Game - Economic Collapse. Is it true? When will it happen?

Marc Faber: `Gigantic' Credit Bubble in China

Marc Faber Likes Bonds, Gold More Than Equities

Marc Faber Warns of Massive Economical Meltdown Very Soon Recent

You Believe In Father Christmas If You Believe China's GDP Numbers

ECB Will Take Huge Losses On Greek Loans & Bonds

Gold Isn't Down as Much as Apple

Faber: China's Unwind 'Will Be a Disaster'

Marc Faber: The Chinese Will Not Print Money

In this episode of China Money Podcast, guest Dr. Marc Faber, renowned investor and publisher of The Gloom, Boom & Doom Report, speaks with our host Nina Xiang.

Dr. Faber shares his thoughts on why China's economic problems are solvable, explains the reasons behind his belief that China is likely to keep its currency stable, and rebukes the argument that capital may be flying out of China for a lack of confidence in the world's second largest economy.

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Marc Faber talks stocks

Marc Faber, the editor of the Gloom, Boom & Doom Report, tells CNBC's Dominic Chu that the market is set to fall "big-time."

- Source, CNBC

Marc Faber talks protection strategies

Marc Faber, the editor of the Gloom, Boom & Doom Report, tells CNBC's Dominic Chu why he still likes gold.

- Source, CNBC

6% growth in China? 'You must be joking'

Marc Faber, editor & publisher of the Gloom, Boom & Doom Report, says China's economic growth has decelerated to 4 percent or less.

- Source, CNBC

Marc Faber - Why Europe Will Never Give Up Greece

Preventing Russian influence in the Mediterranean is the real reason why Europe will never allow Greece to leave the euro zone, according to global investor Marc Faber.

"This is a political issue overlooked by many people," the infamously pessimistic economist told CNBC on Monday. "If Greece leaves, the North Atlantic Treaty Organization [NATO] countries led by America are very afraid that Russia will establish closer relationships [in the Mediterranean]."

Many economists agree that if Athens does default on its multi-billion dollar debt repayments, $840 million of which is due Tuesday to the International Monetary Fund (IMF), the chances of a Grexit, i.e. Greece leaving the euro currency bloc, are high.

But, should that occur, "the Russian fleet can move into the Mediterranean from the Black Sea," Faber said.

Russia's occupation of Crimea and east Ukraine in the Black Sea makes an entry into the Mediterranean very possible due to the Black Sea's close proximity, Faber explained, adding that a Grexit essentially provides Putin the perfect opportunity to do so.

Greece is generally regarded as a gateway to the Mediterranean, it is also a key NATO outpost in the Balkans.

Faber's theory is underscored by European worries of closer ties between Athens and Moscow following Greek Prime Minister Alexis Tsipras' visit to Russia in April.

- Source, CNBC

Marc Faber says Short Central Banks and Buy Gold

In an interview with Jack Otter, editor Of Barrons.com, Dr. Faber again reiterated his desire to short central banks. While that is technically impossible, the editor of the excellent Gloom, Doom and Boom newsletter indicated that it can be done by proxy through the buying of gold and silver bullion.

In a Barron’s video interview published by the Wall Street Journal, ‘Dr. Doom’ said,


I think that my bet is that if i could short central banks i would short central banks in 2015 because I think that investors will suddenly realise what a scam central banking is and then they will lose confidence. And there is only one way to short central banks and that is to buy gold.

In January he said at a Societe Generale presentation that he expected to price of gold to go “up substantially – say 30%” in 2015. Dr. Faber has an impressive track record of accurately predicting medium term patterns within the overall long-term trend.

He sees an anaemic economic performance from Europe this year, he thinks the U.S. is slowing and his attitude to emerging markets has cooled. “In some [emerging market] countries they may be growing 1-2%, in others there is a contraction in industrial production. The Chinese economy which is the dominant emerging economy in the world is definitely slowing down.”

Alone among the emerging markets, India is still growing impressively at 5-6%. However, Dr. Faber does not see the enormous gains made in some sectors of the Indian economy – the stock market rallied 35% last year- and those of other emerging markets continuing.

“A lot of markets are not terribly expensive but [they] are not bargains,” he said.

Ultimately he sees the global economy continuing to slow down. “In general, if you look at global exports they are flat, if you look at the global reserve accumulation they are flat. So I think that we will face a disappointing 2015 in terms of economic growth.”

He added that while China is slowing down he expects the stock markets to perform reasonably well due to the distorting influence of central banks.


There is a lot central bank interventions and expectations by investors what the central bank will do next and so investors pile into stocks in the expectation that the Bank of China will essentially ease.

When asked where one should invest their money he indicated that his main strategy currently was to short various sectors rather than shorting companies.

In particular he singled out the biotech industry and with less enthusiasm social media and semiconductor ETFs. He was considering shorting the Australian dollar and indicated that the U.S. dollar was also in his sights while he thinks the euro is oversold in the short-term.

While he sees mainly shorting opportunities, he is long gold, prefers physical gold and opts for storage in Singapore:


Yes I am long gold. I’ve been long gold since the mid 1990’s and I bought recently again more.

- Source, Market Oracle

Marc Faber Doesn't Think Europe Is Even Close To Being Solved

The Greek problem is that the economy of the country is simply not large enough to support its current level of debt.

Marc Faber thinks Greece exiting from the European Union could create a closer relationship with China or Russia, which the West wouldn't like.

Faber thinks that the West is going to have to make concessions on the Ukraine so that Greece which has a very strategic physical location doesn't become closely tied with Russia.

Faber thinks that the EU will still exist five years from now but that the countries involved might be different. That could lead to a stronger Euro if only stronger members remain.

- Source, Guru Focus

Dr. Doom says Greece is a lost cause, time to cut ties with dead weight

Greece bought itself more time Friday for Prime Minister Alexis Tsipras to continue his push for less imposing austerity measures tied to reconciling the country’s debt load. Greece and Eurozone finance ministers reached a deal to extend the heavily indebted country’s rescue by four months.

German Chancellor Angela Merkel and other hawks in the currency union appear willing to cede some ground in allowing the Greek economy breathing room to grow again, but many members are largely in favor of holding Greece to the strict conditions of its international bailout.

As the 19-member Eurogroup continues to weigh Greece’s options in Brussels, Marc Faber wonders how long it will take for them to wise up, cut their ties, and give their head a shake as to why the country was allowed to join in the first place.

“In my view it’s inconceivable under any condition that Greece will be able to repay their debts. That should be clear. I’m more interested in what happens if Greece leaves the EU or is kicked out of the EU, which I think would be the right thing,” said the editor and publisher of The Gloom, Boom & Doom Report.

While the impact of a Grexit could have toppled the Eurozone had the Greek debt saga reached a boiling point at the height of violent anti-austerity demonstrations in Athens and double digit jobless figures, today the risk of a domino effect of countries leaving is much diminished. Unemployment has fallen and failing banks have recapitalized.

Faber is on the fence about a potential parting between the EU and Greece – he says the odds are 50/50 – but what he is sure of is Greece’s role as dead weight in the grander scheme of Eurozone prosperity.

“The EU should never have taken Greece as a member. When the first problem occurred a few years ago, they should have written off Greece right away. But no, the central bank and the ECB supported by the Federal Reserve, they kicked the can down the street and leant them more and more money with the result that Greece now owes the EU and banks in the EU to the tune of $250 to $300 billion,” he said.

Analysts warn that a Grexit would be both costly and complex, speculating that bank machines would have to be shut down to prevent mass withdrawals and thousands of mortgages would have to be converted to a new currency. Faber says the currency ultimately stands to gain in Greece’s absence.

“I believe it will strengthen not weaken because the Euro needs strong countries not weak countries. We have to take a write off at this stage if Greece leaves,” he said.

BNN commentator Kevin O’Leary says there isn’t a policy fix for Greece’s problems, and the Eurozone shouldn’t make room for a member that’s unable to collect taxes effectively. He says Greeks have to undergo a cultural shift to embrace the merits of being taxed, and their government has to punish those who refuse to comply.

“Until they do that, Greeks won’t pay tax and they never will. Part of the culture of Greece is to celebrate the fact that you can have a swimming pool and you don’t have to pay the tax,” said O’Leary.

Faber holds out little hope for Greece, even with improved growth prospects stemming from the European Central Bank's €1.1-trillion quantitative easing program.

“The ECB could buy all the Greek bonds or lend them the money. It’s futile. They money won’t do anything to Greece. It won’t help Greece. It will keep it kind of afloat. In the end, instead of foreign debt between $200 and $300 billion, Greece will have a trillion dollars in debt,” he said.

- Source, BNN

The most attractive stock investment

Faber is more optimistic on gold stocks despite bullion's volatile start to the year.

"Gold shares are the most attractive asset class within the equity market – they have been hammered over the last three years and are showing signs of bottoming out," he said.

Faber's call is based on his bullish outlook for the precious metal this year, which he expects will trend higher as confidence in the ability of central banks to solve global economic woes dwindles.

"When confidence in central banks finally collapses, then gold has a 30 percent upside potential, easily, this year," he said in an interview with CNBC in January.

He recommends gaining exposure to gold miners through exchange traded funds such as The Market Vectors Gold Miners ETF (GDX), the Junior Gold Miners ETF (GDXJ) and Sprott Gold Miners ETF (SGDM).


Faber, however, cautions that the trade is not for the faint of heart.

"If someone is more risk inclined, he will do better in gold miners [than physical gold]," Faber said in an interview with Washington DC based TV channel RT America last week.

"There's a higher risk [in the miners], it's more volatile. Gold prices drop $200, the miners are going to get slammed. Gold goes up by $100, [the miners] go up by a higher percentage," he said.

- Source, CNBC

Dr. Doom’s take on India's dazzling stock rally

Following India equities' dazzling rally last year, the market no longer looks compelling, according to storied investor Marc Faber.

"The share market has gone up a lot over the last 12 months and the valuations are in most cases no longer terribly compelling," Faber, editor and publisher of 'The Gloom, Boom and Doom,' told CNBC's Indian affiliate, CNBC-TV 18, on Wednesday.

"I just looked at Nestle India, it is selling at close to 50 times earnings," he added.

India's benchmark Sensex Index rallied over 30 percent last year driven by robust inflows from foreign funds betting on an economic turnaround under the leadership of new Prime Minister Narendra Modi

The market is currently trading at a price-to-earnings ratio of 16.3, above the valuation of China's Shanghai Composite at 14, but below the valuation of Japan's Nikkei 225 at 19.5.


"Everything has to move in the right direction to justify these valuations," he said.

While India's economy appears to have turned a corner, the country's upturn is still at a nascent stage, with analysts believing further structural reforms required to unlock its full potential.

Investors will be closely watching the upcoming budget on February 28 to gauge the government's reform resolve.

As such, Faber, who has been investing in Indian stocks over the past two years, says he's not inclined to add to positions right now.

"The market could finish the year somewhat higher… it all depends also on foreign investment flows and on foreign economies," he said.

- Source, CNBC

The Bubble - Raw footage of Marc Faber interview

Dr. Marc Faber: Employment Numbers Are BS

John Manfreda and Jason Burack of Wall St for Main St had on returning guest Editor and Publisher of the Gloom, Boom & Doom Report http://www.gloomboomdoom.com/, Dr. Marc Faber.

Jason and John ask Dr. Faber about interest rates, financial repression, ECB QE, Swiss depegging, Greece leaving the Euro, the fake employment numbers, Asia, China, Gold and Gold Mining.

Marc Faber Economic Forecast: Gold, Oil, Stocks, Bonds, Equities, Apple (APPL) Stock Price

Marc Faber on U.S. Stock Market & China GDP Growth Rate

Forget Rally, European Banks Are Still Sick

Marc Faber on Tail Risk, China, and Oil

Erin sits down with Marc Faber – editor and publisher of the Gloom, Boom & Doom Report and director of Marc Faber Ltd. Marc tell us what he why he believes this is the year that people will lose confidence in central banks and gives his usual nod to buying physical gold outside of the United States. However, he admits he likes the gold miners right now as a way to get exposure to the sector. Marc also 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.

- Source, Russia Today

Gold Isn't Down as Much as Apple

Obama Is `Very Negative' for the Economy

Marc Faber Says He Likes Gold, `Some Emerging Economies'

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the U.S. economy, global financial markets, and investment strategy. Faber speaks with Tom Keene and Olivia Sterns on Bloomberg Television's "Surveillance."

U.S. Dollar, Assets Prosper, but Not Economy

Marc Faber, editor and publisher of “The Gloom, Boom & Doom Report,” talks with Tom Keene about the U.S. economy and global interest rates. He speaks on “Bloomberg Surveillance.”

Faber: China's Unwind 'Will Be a Disaster'

Marc Faber, managing director and founder of Marc Faber Ltd., comments on the state of the Chinese economy. He speaks with Trish Regan and Matt Miller on Bloomberg Television's "Street Smart." (Source: Bloomberg)

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!

- Source, Russia Today

Faber: Dump Biotech, Short Central Banks, Buy Gold

Mark Faber says the biotech sector, as well as social media and chip stocks, are due for a plunge. He also thinks investors will lose confidence in central banks.

- Source, WSJ

The ECB and the Federal Reserve are one and the same

I think the US government, when gold really starts to move, will take it away. They will pay something. Say like in 1933, they paid $25 per ounce of gold that people held, and after they have collected most of the gold – of course not the gold that was held by government officials, or to precisely say “by corrupt government officials,” because they’re all corrupt – they revalued the gold to $35. So the investor lost out. And I think what will happen, the US will eventually, under some kind of an excuse, whether it’s terrorism or whatever it is, expropriate gold. They’ll pay, say, at today’s price, $1220 an ounce, and then they’ll go to the ECB.

The ECB and the Federal Reserve are one and the same. The Bank of England also. They talk to each other every day. They’re the chief manipulators of everything. And then they say to the ECB, “Well, because we do it, you also should do it,” and the Draghi-type of – I don’t want to say what I think of him, but I say, Draghi-type of personalities, they’re saying, “Yeah. Yeah. We’ll do it also,” and then the Bank of England, of course, will do it also. Then they knock on the doors of the thrifts and say, “You thrifts, you also have to do it,” and the thrifts, they have no backbones anymore. The thrifts will say, “Okay. We’ll also do it.”

And so the threat is really for an investor, is where do you store your gold? Because if you have it in a bank or in an ETF, it may be taken away. And whereas I think that the Sprott Physical Gold are the best ones. When the US knocks on the door of Canada and says, “You have to do the same,” the Canadians will also say, “Yeah. Okay.” And so the best, probably, to store gold in Dubai, in Hong Kong, Singapore, physically.

- Marc Faber via Sprott Money, Ask the Expert Interview

The Problem With Communism

The problem with communism was that the whole economy was run by the government. In other words, essentially the whole economy was 100% government. That was a problem. In Singapore we had the leader, for the last, essentially, 50 years, and he’s done a great job. And in other countries also we had great leaders, but the issue really is, “How much government do you want? How much transfer payments do you want?” In my view, a small government is the best, the maximum, say 15 to 20% of GDP. But now, in the Western world, we have, through all the transfer payments, governments that are close to 50% of GDP, and in some countries, more than 50% of GDP.

- Marc Faber via Sprott Money
 

What is a Legitimate Government

“What is a legitimate government?” Today we have a government, basically in the Western world, that has more voters who receive something from the state then people that actually pay for it. And so I think that democracy is an untested system. We had, maybe, 7000 years of history of civilization, and democracy is precisely, roughly maximum 100 years old, maximum, because in many countries, full democracy was only introduced less than 100 years ago.

- Marc Faber via Sprott Money
 

There Are Many Reasons For Oil's Weakness

My view is that there are many explanations for the weakness in oil, including some theories that Saudi Arabia wanted to weaken Russia or the shale oil production in the US or Iran, and so forth. But my view is that the decline and sharp decline in oil prices signals a weakening global economy.

Now, in the last few days, I received many reports by brokerage firms and banks, and so forth. They all think that next year the economy in the world will be stronger than in 2014. This would not be my view. Reason A, the low yields on government bonds, that would seem to suggest to me that there are still some growth issues in the global economy, and the sharp fall in the industrial commodity prices would also suggest to me that the economy will be weaker than expected.

And I live in Asia. I can say that we’re not in a recession or in a deep recession, but there’s very little growth at the present time. In fact, I would argue that there’s hardly any growth at all. And as far as Russian oil stocks are concerned, and I think the oil price can rebound here short-term, but you might as well buy some oil drillers in the United States or oil servicing firms or oil companies. Why take a huge risk in Russian oil companies?

- Marc Faber via Ask the Expert Interview
 

The US Dollar is Not the Ugliest Among Several Sisters

If the US buys its own bonds, then because of the status of being a reserve currency, they basically buy their own currency. If foreign governments would start to ease massively, then I suppose the currencies would weaken.

Now, you may say, “Well, why did the dollar strengthen amidst the fact that the US has printed money?” Well, there are some reasons. First of all, maybe the US dollar is not the ugliest among the several sisters, and two, because of the increase in oil production in the United States, the trade deficit has narrowed, and so the dollar can be strong for a while. I don’t think it will last, but the consensus is that the dollar is the strongest currency around. And these other countries, say if Thailand or Singapore or Indonesia would start to print money, then they would weaken their currencies, or that would be the perception.

- Marc Faber via Sprott Money
 

Marc Faber See's Value in Agricultural Companies

Faber has consistently warned since the late 1990’s that this dynamic would come to pass as the West and the U.S. in particular exported its industrial infrastructure and binged on consumer junk fuelled by easy credit while the emerging economies of east Asia used the proceeds to focus on production rather than consumption to become industrial powerhouses.

He went on to say,

“In the countries that opened up post breakdown of the socialist/communist ideology – China, Soviet Union, Eastern Europe - and India of course we have an entire generation who will earn much more and will have a better standard of living than their parents had.”

He highlighted certain factors that are leading to this lower standard of living for young western people. Banks now generally charge more to hold one’s money than the interest they pay out. He cites the yields on Swiss ten year bonds at 0.46% as an example of how people, and especially young people, are disadvantaged relative to previous generations.

“These people will not enjoy the compounding impact that I enjoyed having started to work in 1970 when bond yields were 6% and they went to 15% and so forth. So during that period of time wealth was accumulating very rapidly plus we had a huge boom in real estate and in equities and bonds between 1980 and 2007.”

“That is not going to happen again.”

Agricultural commodities including palm oil and Asian companies processing agricultural produce is where Dr. Faber currently sees value. Some of these companies in Malaysia and India, for example, pay dividends between 2% and 4%.

The young people who invest in these types of company will see their wealth steadily rise as opposed to their western counterparts who rely on the casino of rising paper asset prices.

Faber also likes the stock market in India and thinks it could see gains of 15% next year. The new government is free market and enterprise friendly and Faber believes the central bank in India is the “world’s best central bank.”

Dr. Faber is a long time proponent of owning physical gold. He has consistently urged people to act as their own central bank in acquiring bullion coins and bars as financial security and he believes that storing gold in Singapore is the safest way to own gold today.

- Source, Gold Seek
 

Younger Generations Will Earn Less Than Their Parents

“I meant that with respect to western societies and Japan where essentially the younger people – today’s generation – will earn less than their parents and they will have less wealth than their parents, inflation adjusted.

This is because we will have wealth taxes, we will have more estate taxes and we have essentially declining real median incomes in the western world and Japan.”

- Marc Faber via a recent Gold Seek Interview
 

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“The Gloom, Boom & Doom Report” Editor and Publisher Marc Faber discusses his outlook for 2015 with Bloomberg’s Betty Liu and Brendan Greeley on “In The Loop.” (Source: Bloomberg)