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Chris Martenson Interviews Marc Faber - Fed Bashing Ensues
"If there's one institution in the US that consistently and repeatedly messes up everything, the Federal Reserve is that institution."
So says famed investor Marc Faber in an interview he gave to ChrisMartenson.com this week. In it, Chris and he dive deep into the Fed activity (encouraged by Washington and Wall Street) responsible for the current severe health of our economic system. Both feel that once you understand the nature of the critical role the Fed now plays, you have much better clarity into what the most probable outcomes for our economy and financial markets will be.
Click here to listen to Chris' interview with Marc Faber
Read the Transcript of the Podcast
In this podcast, Marc explains his views on why:
- Government intervention into the free markets has been increasing since the early 1980s (S&Ls, Mexico, LTCM, etc) and is the root cause of our issues, as each intervention brings the system further off track
- The principal vehicle for this intervention, the Fed, has a near-perfect track record of creating unsustainable asset bubbles (to which it is largely blind) when it intervenes
- Since its founding, the Fed has been dedicated to expansionary monetary policy. When looking at history, there's an argument to be made that per capita price management in the US was better under the gold standard we had before the Fed.
- We're on a direct path to higher inflation, despite the Fed's preference for raising the deflation spectre and citing the low (and ridiculously-calculated) CPI.
- While the Fed is printing money with abandon right now (e.g. buying all new Treasury issuances for the next six months), doing so is raising the risk of a hyperinflationary currency collapse.
- US government bonds are a disasterous investment going forward (even if the deflationists are right).
- The revolving door between Wall Street and Washington motivates our leadership to preserve the status quo, which is corrosive to markets because smaller investors are waking up to the fact that the rules are stacked in favor of the big players. Investing as we have historically thought of it is dead.
In Part 2: Prognosis for 2011 (for enrolled ChrisMartenson.com members - click here to enroll), Marc details his thinking on how the endgame will play out, as well as his specific outlook for 2011.
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If by "messes up everything" he means rigging the game so that the taxpayers are always robbed, with the proceeds going to bankers, then yes, I'd have to agree.
If he means that the Federal Reserve doesn't know what it's doing, then I strongly disagree.
I never actually saw how "Thelma and Louise" ended their journey. But I don't think paying money for their sequel, "Thelma and Louise the Final Seconds" would be a good investment.
The fool knows what he's doing. He's just wrong. Hence the conundrum: which came first, the bungling or the blindness?
Marc and Chris as Thelma and Louise? (I see you're finding your inner conundrum. Dr, heal thyself.)
What to say? Fiat money kees things weird.
The International Banking Cartel is like The Pharmaceutical industrial Complex.
They never cure the disease, they only treat the symptoms.
Member banks get a Bail-Out. Sovereign Countries get a Debt-Injection.
Get it strait why don't you?
Sovereign Countries not only get a debt injection, they also get their liver destroyed by austerity, so they can not filter out the poison debt and they die.
The only cure for too much poison debt is filing for bankruptcy. That is why our founding fathers made a provision for it in our Constitution.
The United States can most certainly file for bankruptcy since it is considered a corporation, made that way by the Act of 1871. Just abolishing it.
1871, February 21: Congress Passes an Act to Provide a Government for
the District of Columbia, also known as the Act of 1871.
http://www.byronwine.com/files/1871.pdf
UNITED STATES is a Corporation - There are Two Constitutions - Sovereignty
http://www.youtube.com/watch?v=lVsMUpPgdT0
I wouldn't be surprised if the States could file for bankruptcy in the same manner.
Perhaps Barack H. Obama's birth certificate is NOT in all capitol letters, and that is why they won't show his birth certificate.
Perhaps BO was actually selected to be the President so he can turn the United States over to the one world government, the new world order if you will, on a technicality as being the only sovereign citizen left in America, technically, as indicated by his birth certificate.
.
That should be sovereign natural person. Citizen is a corporate designation.
Sombody call Jordan Maxwell and ask him what it means if somebodies name is not spelled on their birth certificate in all capitol letters. Perhaps it means it is not a valid birth certificate and therefore, with no valid birth certificate, Obama can't be President.
my birth cert is not all caps.
What a trip. Free association on a financial website.
Or are you channeling talk radio?
Can't you at least pretend you're responding to something other than your own wonky liver?
This is just the chain of ideas that formed in my head as they happened.
then edit your first reply... or get a diaper for your mouth
Did that on the MLK thread.
.
I'm getting sick of these articles now. Yes, we all know the Fed and the big banks are satans spawn, we've all heard the conspiracy theories about the global government, global currency, bank takeover, why is it so hard to put two and two together? Isn't it obvious by now that the Fed isn't simply incompetent and perhaps, perhaps this is all by grand design and the banks/Fed are slowly but surely entering into a position of absolute power, if not already, whereby any vestiges of liberty will be crushed if we don't do something. Never mind cognitive dissonance have a look at the meaning of normalcy bias and whilst you're there perhaps revisit that favorite down through the ages, DENIAL!
Ooooh, that’s good! A ruling banker elite, the likes of Lloyd Blankfein, runs the country. The American people in servitude are where the French people were just prior to the French Revolution—when the ruling elite took the pennies from the lowliest of the peasants just to maintain their lifestyles. The thousands of courtiers with free and luxurious accommodation at the palace of Versailles can be compared to our stock market elites. If a taxpayer has a few pennies left, they’ve got to have it; else how can they live?
actually, you're historically incorrect. the low point in oppression was 20 years prior to the French revolution. The French revolution was actually brought on because the peasants, in those 20 years, actually gained 20% of the land.
Basically, it was a small taste of what they were missing that prompted them to understand how much more was out there and therefore gain it for themselves. We are nowhere near the bottom of the barrel, so don't be expecting any american revolutions any time soon to play out under the same pretexts and standards.
if anything, america will revolt civilly, and passively. they simply cant bring down their state just like that. its impossible. you just cant beat the state with unorganized violence.
if anything, america will revolt civilly, and passively. they simply cant bring down their state just like that. its impossible. you just cant beat the state with unorganized violence.
Try telling that to a Frenchman on Bastille Day!!
Violence is simply the wrong answer, since it scares the sheep, which further legitimizes the state.
The answer is to abandon the state. First stop giving it any sort of legitimacy, then stop feeding it. If enough people simply stopped playing along, it would fail in short order.
Hey Tyler. He is gonna have a podcast with a crazy chemist from Cornell. Make sure you link that one too. I know him well.
Martenson has come a long way. He's done very well with his website, and now he's interviewing top notch Wall St. players. Congrats Fuzz!!!
Agreed.
Don't worry, I have the solution, it's called insult a banker, that's right just insult a banker once a day and I can guarantee all of the frustration and pent up hatred just melts away, for the time being. There is no shortage of bankers to insult in Hong Kong where i currently reside, bloody cesspool it is.
HUANG JIN SAN BAMEN!!
News would be something different from this from Marc Faber.
80 MM mortar round?
Pretty tough to bash somebody who isn't willing to fight back, eh?
While he's at it, Faber might as well sucker-punch Gabby, too....
Martenson is a better interviewer than most. He shuts up and listens when his guest speaks.
Somehow, our praise theMartenson flagger has overlooked you.
Heckuva job Benny!
I am too getting tired of the "incompetence" thesis -let's face it , our political system as James K. Galbraith articulates is a predatory oligarchy, " predation has become the dominant feature—a system wherein the rich have come to feast on decaying systems built for the middle class. For in a predatory regime, nothing is done for public reasons. Indeed, the men in charge do not recognize that “public purposes” exist. They have friends, and enemies, and as for the rest—we’re the prey." Bernanke is not an incompetent chump, he is a specialized thief who does nothing by coincidence.
That means it would take armed conflict and revolution to exit this current "status quo"? I have believed that more and more as time goes by.
Who is the "traitor" in this situation?
Are we mice or are we men?
I am Jared.
You are Jared.
We are all Jared.
Are you hungry for cheese, listener?
I'm Steve
With all due respect guys, alot of these folks simply have to die off, in order for things to change. That being said, I am not necessarily saying revolution, I literally mean of natural causes or otherwise. Unfortunately, things really have to hit a brick wall for things to change. The unfortunate part is that even with an internet people seem really willfully ignorant, but again, look at whom occupies higher places in the MSM. These outlets are literally in their death throes and gasping for life.
True, but the ground work is done in the schools: 5 hours per day for at least 12 years... that's a LOT of conditioning.
I have found it takes 5-10 minutes to recondition the little nmewn's.
Just sayin.
Volcker out, Daley in, not a good sign. I see no one on the horizon that looks up to the task of doing what should have been done after Lehman: Nationalize the TBTFs, strip of the bad assets, corporate bond-holders and investors get major haircut, IPO what's left over, William Black chairs SEC, Janet Tavakoli is Secretary of Treasury, Fed is unwound and a bunch of bankers go to jail. Until then we won't get to the critical tasks of building infrastructure, health, education, and economic systems that will benefit our children and grandchildren for generations.
Roger that, if things did actually straighten out, I may take a haircut on my gold, but who cares, I hate to think of what the alternative may involve if the price gets high.
You wouldn't take a haircut on your gold because the suppression scheme would be over. Gold would see it's true price discovery and the price would vault much higher.
Agree. But it will only happen in our dreams. We are already beyond the point of no return.
Maybe Barack is getting ready for his return to Chicago. Rahmbo can be mayor and Barry will become governor!
Agree. I would call it a Kleptocracy: rule by thieves.
"Bernanke is not an incompetent chump, he is a specialized thief who does nothing by coincidence."
He has a beautiful mind. In fact, if God didn't exist, theBernank would have to invent himself.
So do we have anyone here who has paid to be a member of Chris' site and can tell us what " Marc details his thinking on how the endgame will play out, as well as his specific outlook for 2011."
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I have to say I stopped listening to Marc Faber when he said that Bernanke was a decent fellow, I realized then that he is one of the parasitic elite, but with a slightly different bent. I can state categorically that Bernanke is not a decent fellow and this "experiment" is a evil plot to transfer wealth from the minions. Bernanke does not give a shit about the commoner, if he did he would stop QE immediately, the effect of rising mortgage rates as a DIRECT result of QE will offset dramatically any rise in the stock markets. It is obvious therefore that his policies are only intended for the likes of the big banks and the elite in general, and people like Mr Faber who define Bernanke a decent fellow, I mean come on!
I believe that is tongue-in-cheek. He's an Austrian economist and totally against the "keynesian" philosophy. Government intervention, he names Fannie and Freddie, has terrible unintended consequences.
Here is a direct quote:
"Basically everything the government has touched in the U.S. has been a complete failure. From the post office to monetary policy to fiscal policies. You want to have a consistent track record of complete failures look at the U.S. government."
LOL! Bernanke is a glass bubble(in love with his theories), ivory tower intellect that has never managed a balance sheet or had to make payroll. I think he really drinks the kool aid that he prescribes for the economy, which is lunatic, but it is what it is. Have you ever worked with a PHD? They really do in fact believe that they can create a reality that works with their theories.
+ a zillion
"Have you ever worked with a PHD? They really do in fact believe that they can create a reality that works with their theories."
That my friend, is the essence of it.
It is not just PhDs. The majority of masters and bachelor degrees in soft studies have that strain of mental migetry. Engineers, Theologists, Medical and Hard scientists are the only people I consider competent to run anything other than the various incarnations of daycare institutions.
History/Poli-Sci/et all:Don't like the history? Change it. It was probably originally written by someone with something to hide.
Journalism/Communications/Advertising: Ratings down? If it bleeds it leads, and give them some eye candy or a cheap sex/fart joke. Both is preferable.
Literature/Fine arts: If you want to change the meaning of a document ... do it, and use your special brand of entomology to gitt'r done.
It goes on and on, Lawyers used to be the bad guys. But even they are subject to stare decisis which is much more stringent now that nearly all legal actions and outcomes are published online. Instead of only in exorbitantly expensive proprietary repositories. Yey, the modern real life destroyers of worlds are
psychology/sociology: patient/fad not conforming? drugs, isolation, negative feedback, or lobotomy
business/econ types:Market/worker not conforming? Release some fake stats. revise them when nobody is looking. then dump money onto it, and if that does not work add a couple of dozen pages to the tax code/regs.
theologists?
Got to have somebody who knows RoboPoster is a good sortin' mechanism. Not to elevate it, cause I don't have the PhD to back it up.
Worked with? I grew up with one. That this professor estranged his four kids didn't inconvenience the child and adolescent psychobabble in his books. To this day, my theDad is a walking curriculum vitae.
There is a chance that Bernanke is just his card the way his career of academia and his many papers on the great depression told him to play it. And that is one reason he got that position, our fearless leader knew they could control him if he strayed from his own path.
Also on Chris Martenson's blog, something ZHers should associate with:
Making Soaphttp://www.chrismartenson.com/blog/making-soap/50453
"Yep, with enough soap, you could blow up the whole world"
Ok sorry Marc. Ill give it a read.
http://smokingmirrors.blogspot.com/2011/01/empty-suits-and-darkness-that...
I agree with DrSandi... Faber tries to make it sound like we have the Three Stooges and Bozo the Clown running the US economy. Au contraire mon ami... they know exactly what they are doing. Wasn't there just a story here the other day about the Fed minutes where they were cracking jokes about the housing bubble and associated mortgage fraud?
The Fed and Timmy know EXACTLY what they are doing.
http://www.rense.com/Currency%20Wars%20For%20Dummies.pdf
I agree with most here, AUD is a short, USD is a long. EUR is a short, had my first $1k Sunday night in about 9 months, shorting Euro futures. So much air beneath that!
Fear Factor is showing some interesting moves, see chart annotations.
http://oahutrading.blogspot.com/
Fear Factor just popped strongly above the upper Bollinger, that means a "surge of no fear". Since this whole chart depicts the "Great Bear Rally" (trademark HT), these pops usually preceed a small decline, but sometimes just a consolidation, NEVER a strong move up. I am betting against a strong move up.
The new VOC is shown
As opined last week, Euro did taunt and pop the PRS 177, now with a kick down from the Daily Person Pivot - the Magenta line.
I am Short Euro Futures from last Friday and lovin' it.
Like Scott Pelley, who never once asked a tough question, sat back, and listened when Bernanke spoke/lied, and never once asked a follow-up question to any of the insane and absurd lies/disinformation/distortions/misinformation/double-speak/propagada spewed forth by Ben 'All For Wall Street; Fuck You, Middle Class' Bernanke?
there are two economies: the cash-rich and the cash-poor.
the russian experience: http://www.youtube.com/watch?v=nCq8TrfYlzc
Anyone have access to the second part? Pm me the link or post if possible.
Appreciated
apparently the captchas have gotten easier