In this special edition of Live from the Vault, Andrew Maguire is joined by renowned economist and author of the Gloom, Boom & Doom report, Marc Faber AKA Dr Doom.
Both the precious metals expert and economist offer their take on gold and silver within today’s economic landscape, and Marc Faber shares the percentage of precious metals that will make up his portfolio for the rest of his life.
With a track record of foreseeing economic disaster, Marc Faber takes us on a deep dive into the inflationary impact of endless US money printing.
The life-long investor also offers an intriguing overview of the current state of the stock market and reveals the areas where he believes today’s greatest investment opportunities reside.
Global macro analyst Marc Faber foresees increasing government intervention resulting in inflation, currency debasement, slowing economic growth, financial crisis and loss of freedoms.
These concerns are rooted in his prodigious study of failed monetary and political regimes throughout history.
Marc Faber: ‘Dr Doom’ Predicts Very Hard Times Ahead For Economy & Financial Markets Are you worried about the future?
If so, I can pretty much guarantee you that no matter how concerned your outlook is, it’s still brightly sunny compared to longtime contrarian macro analyst Dr. Marc Faber, editor and publisher of the Gloom Doom Boom report.
Marc is well-known for his global investment view, his skepticism of central planners, and his bold and often contrarian predictions.
Using a global perspective and millennia of historical precedent, Marc sees challenging times ahead.
Tom welcomes an always popular guest back to the program, Dr. Marc Faber. Most stock markets and sectors have underperformed compared with US Markets.
This is because every time the Fed prints, it ends up with corporations and the super-rich. Markets are no longer homogenous, and fiscal deficits are no longer expanding.
This is making it more difficult for the entire market to move upwards. Politicians and central bankers avoid discussing inflation, and people's salaries are not keeping up with inflation.
Dr. Faber says, "Once you embark on money printing and fiscal deficits attempting to stop is practically impossible... it will continue."
Current interest rates are near zero, and no matter what inflation metric you use, it will reveal that we have negative returns today. So monetary tightening is nearly out of the question. Markets can be manipulated for a time, but eventually, the market will destroy the interventionists.
We may see higher rates from here. In real terms, everything is negative, and that is boosting assets. The Fed is not in a good position, but these people don't go to jail; they will still get compensated.
Expect volatility to increase from here, and those that are leveraged will get slaughtered. "Asset markets are so grossly inflated that they could have a meaningful setback.
We've seen that in bitcoin which is now rallying but the silver and gold tumble we have experienced shows us that other assets could be very vulnerable."
Dr. Faber is concerned about geopolitical risk and what governments may decide to do once this 'pandemic' ends.
But, unfortunately, politicians and bankers are doing what is good for themselves, concentrating power.
Marc says, "It will get bad and it will get worse. For those that think it will go back to normal you better get used to the way it is now. It will be unpleasant and it will get much worse."
What is your view on global markets, they have managed to climb the wall of worry, Central banks are printing money and nobody is worried about inflation? Do you think this kind of debt is unsustainable even for USA?
Money is now changing its shape from physical to digital i.e, cryptos. To understand how cryptos are performing and how good it is for our financial well being head to global dialogue with Mark Faber.
Marc feels, “The economy is currently in a dead-cat bounce and that peak economic levels seen in 2018-2019 will not come back for a long-time… and by a long-time… years.”
Marc questions the belief that government and central banker actions create prosperity. This may be true in the short-term, but it likely has very negative consequences in the long-term. Governments are not very productive, and most things can be done far more efficiently in the private sector.
Marc discusses how he has seen firsthand the socialist and communist systems of the world and how they are a disaster for personal and economic freedom. He says, “Socialism always brings less freedom and unpleasant rulers.”
The Fed finances the state, and today many people are earning more staying at home than actually working. The government will undoubtedly have to institute further programs to support the populace.
The problem with rising assets is that it further increases wealth concentration. This, in turn, increases social tensions, and this instability can cause further hardships for the populace. It’s vital for a society to due what is right and not do things like make the stock markets go up.
