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Marc Faber: "I Buy Gold, I Don't Know What Else To Buy"
Another fantastic interview and some typically outspoken observations from everyone's favorite Doom and Gloomer:"I think that governments have become like a cancer, they have expanded in the financial system...The biggest problem is too much intervention. Whatever the government touches is usually done worse than in the private sector. I think any government intervention has unintended consequences and is negative. Eventually the market will break the intervention and things will blow out...People who tell me about the big deflation in Japan, why don't they spend a day in Tokyo? It's still the most expensive city in the world. At this level I'm not particularly interested in buying anything. I buy gold, I don't know what else to buy." Faber expects another worse crisis to happen in five to ten years, "when the whole financial system collapses" - the reason: the debt problem has been kicked down the road without actually being sold. "I think US Fed, ECB and other central banks have no other option, they will continue to monetize and buy bad paper, period. The central bankers are precisely the ones that don't know that excessive money creation and excessive debt creation leads to a crisis down the road. The ECB will talk hawkishly, but act dovish, like the Fed in the US." Must watch 20 minutes.
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Why do these people(Marc Faber etc) think that "THEY" cannot manipulate gold as well? Pretty much naive, I think.
This is a really good question. The largest holders of actual gold metal all seem to be governments. The companies that own it all own paper that says they own it.
No they own a bunch of fractionally reserved gold. They don't want to go back to the gold standard because they KNOW they can't do it without counterfeiting. Which is why they want to control all the real gold and let us control the fake receipts (fiat currency).
Governments have complete power over all moneys, paper and gold. But at this point they are terrified (or seem to be) of gold. This is because, if human fraud is pulled away from gold, governments have no power to print it to infinity and line their pockets with gold. They do so with paper.
I would be very surprised if the true planners do not already see this and are planning (or have planned for many hundreds of years) for exactly these circumstances. This is not a blind leading the blind deal. To think so, to think that the folks who boss the CFR, Trilat, Comit of 300, etc are idiots serves you poorly.
To think that they want everyone chipped and servile is a possibility, but one can rise up and be whatever you want to be. To rise up is not to ask for their sugar on your tongue, to take your choices into unknown territory, to step away and leave uncertain of where you are going.
There are many areas that I have no personal clue about, my own inner nature being one, but every day I try to find out more. And I think this is about taking responsibility for being a whole human being, not a goody two shoes, but a whole person. Look at the services that the governments supply, most of them are shoveling shit. So what have "we" as a society abdicated to government? Just so.
There are times that I get really frustrated with myself, the world, and the seeming injustice of everything, but I take a few minutes and think positively about why I am here and I know that I can help others to not poison themselves more (if they want) and move away from social models that don't suit them anymore.
I do it every day with every person I meet. Because we meet here on ZH and we discuss overselves and how we look at things. We generate consensus and division on many topics. But that is healthy.
But the basic math defines the banking practice. It is theft. Everything else in our society is defined from that genesis. That is the core.
I think merely by our intention, our thought, and the radiation of that thought, without speech to every person we meet, that that is enough to change everything. Then when people ask or we run into "chance" interactions an even more powerful energy is generated.
This is like Neo in one of the last scenes in Matrix I. He is standing there after being shot and sees the Matrix with the agents as all green code. They fire at him and as the bullets travel toward him, he says, "No!" His will, his knowledge, and his love stop those bullets. It redefines not what the reality of the Matrix is, but where Neo stands in that reality.
"This" reality is necessary for people who need its lessons. It will always be here, exactly as it is today. It is immutable and unchanging. It is the Windmill and Don Quixote will never ever win. That is the path of futility.
How many of you are there out of the US pop who want to change the gov? Not enough, because they count the votes and nothing ever changes. Don't get frustrated, you can't leave, change your self, and stand somewhere else.
"How many of you are there out of the US pop who want to change the gov?"
Many more than last year, the year before that, etc...
And growing.
Government controls everything. You can realize all the gains you wish. The tax man still cometh.
The question is, how secure are governments.
Gold is indeed a heavily manipulated market. They try to keep the price down, but it only works in the short term.
I've never understood why people think that heavy major players are against gold as a currency.
Gold as a close currency system favours the large owners who are the ones to control supply and in a position to suck up gold owned by minor holders.
At present times, gold has one big issue for heavy major players: some still lie unearthed, comprimizing the closeness of a currency based system.
Once gold has been extracted (better done with a fiat sytem), then gold all the way as a currency as it is the most favourable system for heavy major players.
What big players are u referring to? The ptb needs fiat to keep to paper ponzi taxpayer rape fest alive and well. Where would the derivatives be in hard money system? Not anywhere near 600 trillion..
By "big players," he seems to have left out the biggest players of them all, and the ones that get to shoot people when they don't get what they want and call it "justice," i.e., governments.
Simply, gold is competition to fiat currency as money.
5 to 10 years?
That is, in American terms, 5-10 generations.
Buy, buy, buy..
That is Dr. Faber being an optimist.
Or trying to keep people from panicking until he's done buying.
I'm thinking 12-18 months before the final 'game over' collapse.
Mr. Faber:
Have you not heard of my "Hot Babes All the Time" ETF???
You can put your money there! (see yesterday's previous thread on etf's for more info...)
So, who you going to believe? Faber or Denninger?
I think that question answers itself, really.
Both, helps develop discernment.
Why do these people(Marc Faber etc) think that "THEY" cannot manipulate gold as well? Pretty much naive, I think.
Agreed, if TSHTF then you won't be able to exchange your gold for a while so you'll have to tough it out or change countries where you can exchange your gold.
Any coins will have to be melted down to get rid of your own country's denomination or identity of the coin so strip it back to lump metal.
Try getting out of the airport with your gold.
I believe that's why most preppers place PMs at the end of the list of supplies. Your initial focus should be on clean water, a year's supply of food, off-grid ways to prepare that food, first aid supplies, disaster supplies, gardening needs, hygiene needs, power and fuel, security/firearms, and then precious metals.
And while gold is your go to for long-term insurance, junk silver should be your focus for bartering. It's legal tender, but has intrinsic value through the silver content for bartering.
That is correct. However, in the probability scale events before total collapse have priority and much higher probability.
Therefore, you need to be prepared for a long period of currency failure before total collapse. Argentina went through these stages without total collapse.
Granted though, that the rest of the world was not as bad at the time.
This time, it will be global and more serious. Currency collapses in the world may happen as soon as this summer.
Bottom line buy physical gold. As of now gold can be taken out of the country and into the country with no tax. (must declare if more than $10k per family) declare of fly separately.
Everyone has a different mental idea of what "TSHTF" really means, but I suspect you're using the Mad Max analogy. In a nutshell, I think that's bunk. Life goes on, and trading of physical goods will ALWAYS continue, if only in a grey to black market way.
If shit is that gnarly, what makes you think the airports are gonna be working at all? If trade goes that far down the drain, what the hell are you gonna give some enterprising Chinaman (Asian-American is the preferred nomenclature) for import(ant) stuff that you really need? "Hey, how about I trade you some paper that's excellent for use in anal hygiene matters"?
Faber is neither a trader nor an investment manager with a public track record. Who cares what he (says he) buys if we can't verify his investment track record.
If I want to listen to a goldbug then I listen to Sprott, at least he has a public track record (hedge fund).
Faber's opinions are generally pretty reliable as to the flow of things, and far predating track-record wise Sprott. Not that Sprott is wrong, only a follower of Faber.
Idiot
Not everyone with knowledge and good sense makes their living playing the markets.
If someone presents checkable facts and a reasoned argument I will at least listen.
5 to 10 years....que pasa, Mr Faber?
Try 20...
Months?
12-18
When they can no longer hold it they will let gold to rise. Why? Because the top themselves don't believe in paper money and paper wealth (although they want us to believe into), they only believe in gold. That's why they asked their servant to sell the public gold at dirt cheap prices...
Believe in it? I don't know I'd use that word "believe".
They understand what gold represents, and it scares them. It implies to the end of their legalized counterfeiting system and some restoration of honest money as opposed to the current rape and pillage of the masses system that benefits them more than anyone else, and a whole hell of a lot more than gold. (If it benefited them so much, fiat would be done long ago, not the other way around...)
You sir, speak the truth. Every unsophisticated saver who has their retirement money in cds or a savings account is getting raped by .1 percent returns. They are bolstering the banks who then gamble away their money. Then the shit assets get foisted back on the taxpayer via bullshit programs like tarp. Con-gress then approves even more money for every shit program and endless wars that it will never be able to pay back- unless they along with the criminal crime syndicate called the federal reserve engage in more money printing.
The primary way they push the value of gold down is by selling it. Thing about gold, though, is you eventually run out of it to sell.
While I like Faber ... do we really need the Deregulation which led to wholesale fraud like we saw in the Gas and Power/utility industry... and the Deregulation of the kill SarBox-type. Wasn't it ALSO deregulation that got us where we are??? ... as well the irresponsib ility of government..?
....discuss/rant
Deregulation is a misnomer to what happened in your energy example. Some regulations were loosened in a still highly regulated platform, which allowed for the BS to take place.
The same applies to what you imply about the current financial system. Malregulation ain't the same as deregulation, or for that matter, a free market. There's nothing free about the market that lead to the catastrophe of recent years. It's always been a highly corporatized and centrally planned environment -- e.g. fixed interest rate, deliberate obfuscation of the real economy by expanding money and credit to defend arbitrary interest rates. Interest rates are the price of money. Price fixing money is what our system does, and it allows for legalized counterfeiting and fraud (fractional reserve, etc.). Nothing remotely natural about such markets.
Granted, you acknowledge the govt.'s role (heck, Freddie, Fannie just the tip o' the iceberg, etc), but it's much worse.
Yeah, I can (sort of) see your point. But when you deal with something like a cross-country power grid, or a national gas transmission system (which takes NatGas places it would never go otherwise) would a de-regulated market actually work. Should we live in a world where there are no public utilities at all? If that were the case - - we'd all have to live in Houston (God forbid!), because no pipe company would ever invest the capital to branch out further - -and if they did, it would be highly likely that they would become a monopoly anyway. That monopoly would then be free to wrench prices up and down as they wished (once "dependency" was created) - which is pretty much what happened in the California power market in the late-1990s with PG+E and Enron. I'm not after a vitriolic diatribe ... (and you don't seem to be either) But I'm not sure a perfectly and totally deregulated planet is any more viable as a utopia thn a socialist utopia...hmmm
Look through another lens. We already have a corporatist model. With the state taking nearly 40% of all corporate income, it has a direct stake in elevating the profits of corporations. If it must do that through regulation or deregulation it will act accordingly. Individual states then play the role of capital cops nickel and diming their way into the corporate profit arena.
In the United States, individual states have already created monopolies in utilities. The utilities didn't create them. Politicians and Corporate barons cooperated in the creation of these utility monopolies.
"Politicians and Corporate barons cooperated in the creation of these utility monopolies."
c
yes, agreed. So the issue here seems to be something more ephemeral than simple statism vs. corporatism, which, I agree (if I understand you correctly) you see as inter-twined. For instance - - everyone hates government and government employees - probably rightfully so - for their do nothing all day, self-legislate great pensions for themselves and take kick-backs everywhere they can (while dealing a little contraband on the side, in the case of the police/DEA) But I can equally point to Switzerland and Scandanavia, where government employees never call in sick, where they don't bend legislation to fuck every citizen but themselves and the get decent moderate pensions, and their standard of living is through the roof! Maybe the real problem is that we have a totally selfish, irresponsible attitude in America/Britain (and to a lesser extent) Spain and France. In Denmark I see a lot of "socialism" along-side capitalism - - and everyone isn't at each others throats about it ... but then again - the Prime Minister doesn't have two jets of his own/ four Mercedes and Six houses. That's not to say, however, that they don't have highly successful Titans of Industry. The (belabored) point I'm making is maybe, dear Brutus, the problem is in our culture... this rapacious I don't give a damn about anyone but me me me ... because no one cares about me anyway... and off we go into this wild orgy of self-destruct...
aww shit... I dunno...
Well, you're basically right. For better or worse (and in this case it seems decidedly to be worse) our American society developed along a path of gluttony and selfishness.
After we came out of WWII smelling like a rose we had the whole world in our hands and the future ahead of us. We had vast tracts of empty land in the West that could be exploited and developed, and now that we controlled the world that frontier extended into the third world.
Our leaders promised us nothing but prosperity and an advanced way of life. We were untaught how to save and conserve as we did in the Depression and re-taught in the ways of spending, consuming, and generally living like everyone else in the world existed to serve the American Dreamers.
This is not conjecture on my part (perhaps some hyperbole) but rather this is how we developed as a society after the war. We had an abundance of natural resources and goodwill amongst nations throughout the world. The problem is we enjoyed those spoils a bit too longly, and along the way we forgot what made us strong and good. We got complacent. We got spoiled.
These other countries you compare us to, they have much smaller populations, and so a cohesiveness amongst the population is much more feasible, not to mention the ethnic homogeneity. It's easier to keep civil society moving together in the same direction when you all mostly look and think the same.
Here in the US we obviously have a much different picture. A thousand different cultures all intermingling and jockeying for position. It's a "divide and conquerer"'s wet dream. So many divisions to be made and, therefore, so much wealth to extract in the process by rabble rousing and casting blame on The Other, and an endless number of short-sighted and unthinking dupes to carry out the carnage.
My conclusion to all this is that the US needs to break up into smaller provinces with strong autonomy. Let's just get it over with already. This fiction that we are one nation (under God) is tired and strained by now. Let ethnic enclaves take over and the civil war begin. I don't want to see it as I miss the old America, where everyone was equal, even though that has always been a farcical scam, but I have made it a practice not to rail against the inevitable.
I think it'll actually be healthier for us in the long run. Those who want to be guided by their biases and distrust of The Other are entitled to their freedom of choice. They are also entitled to the consequences that such thinking brings and are further entitled to solve their own problems once they arise. The enclaves that resist the xenophobia will likely prosper while the stringent ideologues will find after a while that their way of thinking doesn't work. At which point they look over across the border and see a thriving cosmopolitan society and decide it's time to invade and steal all their resources :)
Let's put everyone back in the compost bin and turn it a few times, then dump it out again and see what new garden grows from the old remainders.
I am Chumbawamba.
Tell that to the "Imagine 2050" crowd, bring on infinite population growth and mexicanification of the country!
+309 million
Corporatism is to statism as Labrador retriever is to dog. In other words, there can be no "Corporatism vs Statism" because the former is a type of the latter. The biggest lie foisted on the American people (besides, um, everything else coming out of Washington) is that American state-corporatism is "free market capitalism." True, there are areas of our economy that approximate a free market, but everything involving the creation of money and banking most certainly isn't one of those areas.
Monopolies can only spring into existence with the HELP of Govt via Law(s) and regulations.
No, I mean look at all the fraud the FINRA (a self-regulating body of securities dealers and incestuous lover of the brokerage industry) found before the SEC found it. And look at the great job Minerals Management Service did. MMS having sex orgies with the oil industry during the "W" Bush years was really beneficial in preventing the oil spill in the Gulf Of Mexico.
Of course my favorite example of how great self-regulation works is Larry Summers' double chin.
Yes, that is the one area of critique I have for him as well. I am for abolishing the 14th amendment as large corporations are the same as big government; both are inept. Corporations should have to restructure every few years, like they did before the 14th amendment.
Disclaimer: All men are created equal. It does not take a genius to understand skin color plays no role in intelligence and capability.
Unregulated corporation is the particular where many free market capitalists go wrong; Ayn Rand in particular.
While we're at it, how about the 17th?.
Until it was put in place the Senate had to answer to the PEOPLE who sent them.
After the 17th was put in place, the lobbyists, took over, bought the Bstds off.
The sates lost constrol of their senators.
Yes bravo! Also the 16th, as it is infact uncostitutional. I believe we should scrap all of the "new" ones, and go back to the original.
Apparently 64 tons of Gold bullion is missing
in Turkey, according to major opposition party.
The current Islamist AKP might be hijacking more than just
democracy.
Here is the link in Turkish one needs to tranlsate via Google Translate:
http://www.hurriyet.com.tr/gundem/15051516.asp?gid=373
5 to 10 years
surely not
I cannot take another week of this BS
DAMNIT FABER!!! Dont trade your paper for gold, you fool!
Anyone who is making predictions 5-10 years out given today's circumstances is a fool. Anyone who thinks this system will last another 5-10 years is an even bigger fool.
But at least he got the gold is the only asset worth buying part right.
I think he's trying to maintain credibility.
Anyone on the mainstream financial press predicting economic collapse on a more realistic timescale (6-18 months) would seem like a crazy doomsayer to the unwashed masses who are still trying to figure out why their 401K is just not performing like it used to. He'd be branded a heretic and he wouldn't be invited onto the financial programs as much as he is now.
Just a thought. Not sure what Faber is thinking exactly, but I doubt he's a fool.
I am Chumbawamba.
Well said Chumba.
It's like picking the trifecta for a thoroughbred race scheduled to be run in 2015. Most of the contenders havn't been born yet. In the same way, new political and economic crises will manifest from the ones we are wrestling with now. We can't even imagine the future much less predict it.
Marc Faber is a machine sent back through time to kill Keynesian economics.
It is always best to listen to Marc while this plays in the background.
http://www.youtube.com/watch?v=qtDI1LZw8jY&NR=1
That was awesome.
I am Chumbawamba.
yeah the last bubble only lasted 6 years
this will no way make it that long
its on the ropes now
The housing bubble really only lasted maybe a couple years, as it peaked in '05. The tech bubble was short too. The currentsea bubble will only last as long, and I expect the Hollywood bubble to last around the same period. Each bubble seems to only be able to last a few years at best.
Faber is wrong when he says 'gov't has become like a cancer...'
Gubmint has always been like a cancer. Left unchecked, gubmint will inexorably consume its host - us - to death.
At the same time, gubmint is also analogous to cancer treatment. The patient - us - needs the chemo, but only the absolute minimum to get the job done. Trick is to find that amount and keep from being overtreated by the eager and foolish Obamas in residence.
You might find that natural solutions to treating cancer are far easier on the host and much more simple to administer and costs less.
The first thing to do is to withdraw from the thing that is causing the cancer. So that means stop paying taxes and stop consenting. Yes, I said it: voting and paying taxes causes cancer.
Grow your own food, which is healthier, tastier, and profoundly effective in curing all manner of social ills, including poor health, a polluted environment, and ignorance. Yes, ignorance; for after all, someone who knows how to grow food is no longer a dummy, as it takes some knowledge and skill to successfully grow enough food to provide sufficient calories for your own survival.
If you're not convinced then fine, let's go with chemo, but make sure it gets administered directly at the site of the cancer. In this case, that would be 1600 Pennsylvania and the place we euphemistically call The Hill.
I am Chumbawamba.
...Namaste
It's not voting that gives you metaphorical 'cancer' - just like it's not eating food that gives you cancer.
Just like eating processed, unatural foods raises or lowers your cancer risks, it depends on who you vote for.
...Got liberty?
http://www.lp.org/
I have subscribed to Faber's GBD for 17 years and for my money he is the best. You can laugh at his gold call if you want. Faber has been telling his subscribers to buy since the $240's. All along the way he has been giving us great global equity picks in India, Indonesia, China, Columbia and even Zimbabwe (Zimplats) etc.
"Steward. The flight of notes we could nowise prevent;
Like lightning notes were scattered on the run.
The changers' shops open wide to everyone;
And there all notes are honoured, high and low,
With gold and silver-at a discount, though.
From these to butcher, baker, tavern hasting,
One-half the world seems thinking but of feasting,
The other in new raiment struts and crows;
The draper cuts the cloth, the tailor sews.
In cellars "Long live the Emperor!" is the toasting;
There platters clatter, there they're boiling, roasting."
Goethe's Faust The Second Part, I
"...spend a day in Tokyo? It's still the most expensive city in the world..."
Really? I can get a business hotel there for 6500yen ($72) and have an average lunch for 650-1200yen ($7-$13). These are not flea bags or McDonalds... just normal places everywhere in the city. Try that in New York.
My point is the _average_ person isn't paying these insane rates we hear about, they stay at Toyoko Inn and eat at Cafe Solare or better yet, some local place between meetings. It's like everywhere, the GoJ and the Shinjuku Hilton "conspire" to perpetuate the idea externally that things are fine, prices are high... common wisdom. The average person is buying some of their food at the QQ (99yen store).
My wife found sea salt (from the SF Bay even) at the local dollar store. One pound for one dollar. Can't be beat.
But generally I'd recommend one stay away from dollar store food products: lots of HFCS and MSG in the stuff they carry.
I am Chumbawamba.
...Im not sure I get that one... when I visit countries with rampant inflation everything is really f-ing cheap. So by extraction - this would contradict Faber's point...he's saying Japan his expensive so its a sign of inflation ... Im not sure that's true... what I see is Jim Sinclair's point: "Inflation is a currency event" ... this currency event - where more currency buys less of something would mean tht Japan is deflating - no?
I have a question, why wasn't the pretty brunette given any airtime?
Get rid of the guy CNBC and just have her read from the teleprompter your ratings would go up.
Hey, smarty. A third of the people in the country are less than gainfully employed. Maybe you'd propose we just give all the money to the chick with the biggest tits. Brilliant.
Works for me, so long as I get a Bust in the mouth ;)
I see you're new here Canoe Driver, so I'll cut you some slack. CNBC's ratings are dropping like a lead balloon as has been well documented here on ZH. Some posters like Robo like to highlight the money honeys and their outfits which are nothing but a way to increase viewership. Just do a search of Amanda Drury, Erin "B Cups" Burnett or Becky Twit on ZH and you'll get the point.
And I guess you've never been to a strip club, the girls with the biggest tits get most of the money. So here's an idea for all these "less than gainfully employed" females you're so worried about. They should get boob jobs and start pole dancing to pick up a little extra cash so they can go blow it on a ipad. As for the other half get buffed and show off your moose knuckle because ladies want it just as bad.
Lastly, since you're new here you probably have not realized there's a lot of sarcasism thrown around, something to think about before making a comment.
Maybe he's reading this.............
Really, if you sit and think about it, what the HELL Is left to invest/insure your capital in?.............I am at a loss.
http://www.24hgold.com/english/news-gold-silver-goldwatch-why-many-respected-analysts-see-gold-going-up-to-10-000.aspx?article=2956954800G10020&redirect=false&contributor=Lorimer+Wilson
I tend not to trust very much everyone who blames it all on government. Almost like the Paul clan, everything from the solution to world hunger same as the recipe for "torrejas" is "less government intervention". But then they throw their line with barbarics such as "I don't want the government to legislate on discrimination for privates".
Faber might have some things going with which I may agree, but he's a fundamentalist. Same as those other fundamentalists (the religious kind), they miss the mark on reality by far.
But no mention of the fact that the guys running everything are government "fundamentalists".
At their core, they are control freaks. They see themselves as the Anointed political royalty, meant to dictate to the dependent unwashed Peons how we should live our lives.
It doesn't get more "fundamentalist" than that.
...Patience...