Marc Faber: "I Think We Are All Doomed"

Tyler Durden's picture

All who enjoy hearing a meaty Marc Faber fire and brimstone sermon, that cuts through the bullshit, will be happy to know that the Gloom, Boom and Doom author conducted a 40 minute interview with the McAlvany Financial Group, which covers all the usual suspects: gold, silver, precious and industrial metals, the "crack up boom", the future of the Ponzi and capital markets in general and much more. Of course, it wouldn't be a Faber interview without the requisite soundbite: "I think we are all doomed. I think what will happen is that we are in the midst of a kind of a
crack-up boom that is not sustainable, that eventually the economy will
deteriorate, that there will be more money-printing, and then you have
inflation, and a poor economy, an extreme form of stagflation, and,
eventually, in that situation, countries go to war, and, as a whole,
derivatives, the market, and everything will collapse, and like a
computer when it crashes, you will have to reboot it
." Of course, on a long enough timeline...

Key extract from the Faber speech:

I think we are all doomed.  I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it.

For the investor, the question is: How do I navigate through this complete disaster that is going to unfold?  And I think if you look at different asset classes – real estate, equities, bonds, cash, precious metals – I suppose that you have to be diversified.  I think real estate in the U.S. may go down another 10% or so, or even 15%, but I am always telling people, if you can buy the piece of land or the house you like, what do you actually care if it does down another 10%?  If everything I bought in my life had only gone down 10-15%, I would be very rich, because a lot of things became worthless, especially loans to friends, and bonds, and so forth.

Look at the history, for example, of Germany, for the last 100 years.  They had World War I.  They had the hyper-inflation in World War II.  The bond-holders got wiped out three times.  If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something.  You were not wiped out.  I think that in equities you will be better off because you have an ownership in a company, than by being the lenders to companies, and the lenders, especially, to governments.

Faber on the key distinction between nominal and real, which nobody on CNBC seems to grasp yet, why gold now is cheaper than it was in 1999, and on the Dow and gold reaching parity.

In a money-printing environment, it is very difficult to know what is actually cheap and what is expensive.  Is the price of wheat high, or is it low?  Inflation-adjusted, it is extremely low.  In nominal terms, it is relatively high.  I believe that, in March 2009 when the S&P was at 666, the market was actually much cheaper than is generally perceived, because of the money-printing, and I do not anticipate that we will see 666 on the S&P again, in nominal terms.

In other words, they are going to print so much money that the S&P could be at, perhaps, 2000, but in real terms, it could be down below the lows of March 6, 2009.  Maybe in gold terms, we could one day reach a ratio of Dow Jones to gold of 1-to-1, as we were in 1980.  In other words, the Dow could be perhaps at 10,000 or 12,000, and gold could be at the same level.

That is why I am advising people to accumulate gold.  Can gold have a correction?  Yes, there has been a little bit too much euphoria about gold, and we may have a correction, but I do not think we are in a bubble in the price of gold.  In fact, I could make a case that gold, at this level of $1400 an ounce, is cheaper than in 1999, when I look at the unfunded liability growth of the U.S., at the credit growth of the U.S., and at the household growth, and at the money printing, and at all the wealth creation that happens in China and Russia.

Full interview:


(complete PDF transcript)


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akak's picture

I can out tube your tube!

Links to videos are not conversation, just masterbation.

If you have something to say, or a point to make, please make it YOURSELF here, instead of merely posting a link to a video.  I'll be damned if I am going to click on, and then wait to download, every fucking video that some random person tells me that I MUST see.

Quixotic_Not's picture

The Internet is all just a Sea of Noise anyways, Zero Hedge is no exception.

I think real estate in the U.S. may go down another 10% or so, or even 15%, but I am always telling people, if you can buy the piece of land or the house you like, what do you actually care if it does down another 10%?

Sure, go on out & plop 10-20% down on a house with a 30 year contract, hoping you'll be able to make the monthly nut in the face of escalating job losses...great advice! (Especially if you need to remain mobile to chase industry)

Or better yet, take your current store of wealth and buy a piece of .GOV leased land CA$H and volunteer to be a .GOV employee/parasite pension!

Then again, with the Fraud St./DoC plan to levitate hyper-inflated RE by pumping liquidity into the stock market and insolvent TBTF banks with the hope of inflating wages (oops, did all that liquidity go into commodity speculation?), I think this game is FAR too early to call...except it appears time for QE3.

Dr. Doom appears to be drunk on his own kool-aid, but then again I too could read the trends until .GOV started changing the rules in 2007 forward (contract law anyone?)

P.S.  Back in the early-mid 90s I subscribed to Don McAlvany, which is now known as the "McAlvany Financial Group", and ol' Don missed two huge investment bubbles shilling Au & NWO for conspir-addicts - I easily got in and out of both bubbles profitably (Dot.Com 1996-1999 & Housing 2001-2005), plowing a most of my profits into Ag 2001-2003, a third long-term trend that ol' Don missed.  He did have a lot of nice End-of-the-World stories in every issue though (-0- of which came true)...

Spalding_Smailes's picture


Reading Round-Up, 2/27/2011

• Guest-blogging for James Fallows last week, Jeremiah Jenne devoted several of his posts to discussions of protests and the possibility of a “Jasmine Revolution” in China. His columns on this topic include “China: Not Quite a Revolution,” “After Protests, Beijing Cracks Down,” and “In China, Droughts Bring the Crazy.” Jenne also provided on-the-spot reporting today from Wangfujing in Beijing, the site of a planned protest that was primarily attended by security forces and foreign journalists.

• Tom Lasseter of McClatchy Newspapers writes at his “China Rises” blog of the juxtaposition of the crackdown on protests with the message of an online forum held Sunday morning by Wen Jiabao:

Chinese Premier Wen Jiabao on Sunday held an online forum in which he promised to focus on making the lives of ordinary people in China more comfortable and secure.

Just a few hours later, thousands of Chinese police deployed in Beijing, Shanghai and other cities to clamp down on public gatherings after a second week of overseas Internet-based calls for protests across the country.

The combination of Wen’s comments about government efforts to raise living standards, accompanied by a display of China’s police state tactics aimed at squelching dissent, neatly laid out in one day’s time the Chinese Communist Party’s approach toward avoiding the kind of unrest seen across the Arab world.

In the morning, Wen pushed the official position of more stability and prosperity through one party rule. And in the afternoon, security personnel swarmed public spaces to be sure nobody suggested otherwise.


• At Miller-McCune, Jeff Wasserstrom writes about “Media and Revolution 2.0: From Tiananmen to Tahrir”:

Have the latest advances in communication technology radically altered the fundamental dynamics of struggles for change in authoritarian settings? Or have cell phones and social media merely brought about small shifts in the dynamics of revolution? Is the Web a godsend to those trapped in oppressive states, as Nobel Laureate Liu Xiaobo suggests in his essay “The Internet is God’s Gift to China”? Or does this thinking give in to a form of “cyber-utopianism” that glosses over the potential of new media to be used by autocrats, their propaganda ministries and security forces to massage public opinion, keep tabs on dissidents and ensure that populations stay docile and distracted, as Evgeny Morozov argues in The Net Delusion: The Dark Side of Internet Freedom?


JonNadler's picture

from gold basher to what now? a serious thinker?

Spalding_Smailes's picture

Always have been. 

My gold bashing preceded a what, 10-13 percent drop & 25% in paper miners, etf's. Not bad.

The pom-pom waving miner euphoria after silver first crossed $30 and the JPMorge/Bears bullshit first came about, Turd and everyone else calling for 1,650 soon after, Silver over $45 in months ect ....

Just like I toss out 25-30% stock run's like candy. ( who else on ZH calls um' before the move ??? )



A few more KELYA, CREE, TTWO ....

Also look for big news from CAT soon .............. not big issue long term but stock moving news.



tmosley's picture

Lest you forget, it also preceded the 100% rise before that.


Spalding_Smailes's picture

I thought you were done responding to Spalding you dumb fuck.


The only guys called gold early was Rogers and EJ from Itulip.


Go run along and post on the other 12 blogs you whore yourself on pimping gold, you tool


Everyone can search " TMosley gold " and find your rants, big fucking deal after the run had already started for 5-6 years.

akak's picture

You are absolutely correct Spalding, tmosely is, unlike you, just a tool.

Tool: something which has a function, and serves a useful purpose.

Spalding_Smailes's picture

Your another fuck with nothing insightful, run along.

Focus on point, has Spading been spot fucking on for months on end, yup.


You fools still can't get past dollar denominated debt ( no answer, just personal attacks and junks ) study it .....

akak's picture

More mindless prattle from Balding_Snails.

I have yet to see you post one intelligent, on-point or thoughtful comment here, you microcephalic wannabe.

Spalding_Smailes's picture

Over 15-20 stocks with 25-35% runs beforehand are you for real ???? This is not just a doomer/gold whore site !!!! 


Give me 5 stocks for the next 3 weeks, i'll post 5. Loser never post again on ZH.


Got Ball'z ?

akak's picture

Sorry, if you actually made any legitimate calls here before, they must have been lost in the flood of lengthy, irrelevant and mindless drivel you routinely post here.  Forgive me if I refuse to go searching for the handful of diamonds in amongst the acres of excrement.

You are an exceedingly annoying jerk, did anyone ever tell you that?

Spalding_Smailes's picture

Another side step. Can you fucking read.


Can you respond to anything in my first or any post and challenge it, nope.No answer for dollar denominated debt because it crushes all the anti dollar/USA doomer talk ............

More off topic bullshit.

akak's picture

I don't know what you are talking about regarding dollar denominated debt and "anti dollar/doomer talk", but you certainly have a knack for babbling to no effect. 

You strike me as a borderline idiot savant, with emphasis on the "idiot".

Spalding_Smailes's picture

I don't know what you are talking about regarding dollar denominated debt


Exactly. Thats why you should log out and shut the fuck up, and type dollar denominated debt into google and study the first 20 pages that pop up, then you will have a clue.

tmosley's picture

You have exceedingly poor communication skills.  

Here's a hint: when no-one can tell what the fuck you are talking about, it isn't because you are so smart.

tj3's picture

How thin can this thing go?

tj3's picture

"Forgive me if I refuse to go searching for the handful of diamonds in amongst the acres of excrement."

tj3's picture

well played serf well played

tj3's picture

fuckin a right man

"Marc is missing some key points about real estate:

First is that prices aren't just tied to the amount of money the government prints, as he believes. It's tied to how much of that money winds up in the hands of potential buyers. And that is the crux: little to none of Fed trillions is going from banks and Wall Street in to the general economy. And even rising stock portfolios can't keep up with the rising cost of actually owning and maintaining a home. The Fed is feeding the trend to offshore jobs. Declining real incomes, available jobs and advancement opportunities, the high cost of educational debt, reduced anticipated retirement funds, and a huge increase in the general cost of living and the cost of home ownership all conspire to keep people out of real estate. Bottom line: current prices don't match up with what most people can afford. Even if they have capital the rising cost of home ownership poses a huge cash flow problem. In this climate, nobody can afford to be cash flow negative. More debt won't help in this situation. Add in aging demographics and you have a perfect storm. That's what's driving the current push to rent and build rental housing."

tj3's picture

From Noyce:

  • The S&P has so far done the absolute minimum correction, in terms of it has tested the uptrend from the August ‘10 lows at 1,300
  • However, as discussed in a number of updates and client meetings over the last couple of weeks, the thing which “concerns” us in terms of it being a warning of a larger move is the fact that the market has been above the 55-dma for such an extreme period on a daily close basis.
  • With Wednesday’s close above the market having spent 123 consecutive daily sessions above this particular moving average (it hasn’t made a daily close below since 1st September ‘10). This is very extreme by historic standards and takes the S&P to a greater period above its 55-dma than that which equity markets in other regions (particularly Asia) managed before they began to correct over recent weeks.
  • The other notable point about the recent price action is the extreme move seen on Monday where the market posted its largest one-day %age decline since the recent rally began in earnest on 27th August ‘10.
  • In terms of levels from here;
    • The uptrend from the 27th August low’s at 1,300
    • A similar size correction to that which took place from the 5th November high to the 16th November low (in point terms) would target 1,290
    • The 55-dma stands at 1,284
  • In conclusion we’re by no means making an argument for a real “downtrend” in equities to begin, it’s too early to make that type of statement, but, the risks of a larger correction developing do seem quite high.
Alienated Serf's picture


"Forgive me if I refuse to go searching for the handful of diamonds in amongst the acres of excrement."

JonNadler's picture

so gold and silver have both been climbing, silver doubled in a matter of months, you were bashing both PMs but now you were right?


If I weren't JonNadler, by the arrogance I would say YOU are JonNadler

Spalding_Smailes's picture

Who else tosses out 30% stock run's on ZH ??? 

Bay of Pigs's picture

Why don't you answer his question? Clearly you were wrong on gold/silver. 

Jon, maybe you could put a muzzle on this douchebag. 

Spalding_Smailes's picture

Bay of Swine. Another tool. I've slapped you around enough. No time for your punk ass.


tmosley's picture

I think you've got plenty of time, what with Chicago's record breaking unemployment KILLING the market for furniture delivery.

Lie to us some more, and tell us that the amount of money you made on your best week ever was average.

Spalding_Smailes's picture

Look up Merchandise Mart and see if the high end furniture boutiques  are moving product.


Your the troll, i've called you out with proof. Spaldings never posted on another site.


Go back to trolling around the web. What a total loser, Paul's site ... BWAHHAAAAAAAAAA WWWWWWahhaaaa whew, what a total fuck you are.

tmosley's picture

With a name like "Merchandise Mart", you know it's high class.

Here's a hint, idiot:  people pay maybe $50 for delivery.

Spaldings never posted on another site.

What does posting on another site have to do with anything?  Are you married to ZH?  Did you drive up to Vermont with Tyler and Marla, and let them both fuck you roughly in the ass?

Christ, you are just too stupid for words.  No wonder you have never advanced your station beyond that of delivery boy.

Spalding_Smailes's picture

$75 dollars within Chicago ( account has 5-6 a week ) short run's, the rest ( 5 a week ) going out to Elk Grove Village, the largest industrial park in the USA, next to one of the busiest airports in the world. Chicago, trucking/ shipping hub in the largest economy in the world.

And your asking Spalding why he would start a trucking company. Look at Turd, he calls for a dollar crash / implosion but yet he just started a ice cream shop, or is that stupid also. Your dead wrong. The USA is going on a 10 year bull run.

Your a gold troll.

Please never respond to my post like you said before & I will do the same for you.

akak's picture


And while you are thus engaged, please link together some of those lonely neurons in your brain, so that you might be able to post a coherent comment one of these days.

Spalding_Smailes's picture


The Merchandise Mart is the world’s largest commercial building, wholesale design center and one of Chicago’s premier international business locations. Encompassing 4.2 million gross square feet, The Mart spans two city blocks and rises 25 stories.

The Merchandise Mart became the world's largest LEED-EB (Leadership in Energy and Environmental and Design for Existing Buildings) certified building in November 2007. LEED ® certification is the nationally accepted benchmark for design, construction and operation of high performance green buildings and is awarded by the U.S. Green Building Council (USGBC).

Today, The Merchandise Mart welcomes more than three million visitors each year to its retail shops, LuxeHome® boutiques, 11 floors of permanent showrooms for gift, residential, casual and contract furnishings, 10 floors of office space, dozens of trade shows and a variety of special educational, community and consumer events.

The epicenter for high design and luxury goods, The Merchandise Mart is located in the heart of a city that is home to prestigious fine art institutions, world-class museums, award-winning architecture, professional entertainment venues and diverse restaurant offerings.  The Merchandise Mart is a short, leisurely walk to the famous Magnificent Mile, where exclusive shops and four-star hotels bustle with activity from the Tribune Tower to North Avenue Beach.  Also nearby is Millennium Park, Chicago’s newest architectural landmark featuring celebrated public art works and breathtaking views of both the lakefront and the skyline.



JonNadler's picture

what did i tell you, when you can't answer just turn to insolence

tmosley's picture

Are you dense?  Are you fucking retarded?

He's the god-damned Gold Bug.

Why the fuck would he want to pick some bullshit manipulated equities?  People like akak and myself DON'T FUCKING BUY STOCKS, YOU BLITHERING MORON.  We have physical gold and physical silver.

You might pick five stocks that get lucky.  Pick me a sector that outperforms silver or commodities.  It shouldn't really matter to you anyways, since there is no such thing as alpha anymore.

Spalding_Smailes's picture

You whored miners on Seeking Alpha 2 years ago , bitch. You AKAK two fuck's ....

tmosley's picture

How DARE I double my money in miners!

How DARE I tell everyone that I got out of them because the market looked manipulated!  How DARE I warn everyone to stay away from them since!  How DARE I be right about them, as they have gone nowhere since!

Go deliver someone's dinette set, delivery boy.

akak's picture

Go deliver someone's dinette set, delivery boy.

I almost spit out some very good New Zealand sauvignon blanc with that one!

This Balding_Snails is really too stupid and obtuse for words.

You're always OK in my book, tmosely.  Just don't let the trolls like him get to you too much --- as I have learned the hard way not to do myself.

JonNadler's picture

When you lose the argument just throw some insolence around!


That's my boy!

Quixotic_Not's picture

Pssss...the Bernank's game is a little more complicated now with QE 1 & 2 et al., FAR too many wild cards thrown trying to stabilize "dollar denominated debt".

Throw in some geo-political destabilization, and that debt may not ever be repaid!

Just sayin'...

Spalding_Smailes's picture

Your right my friend about the middle east, who knows if its a black swan or if something big starts in the house of Saud, China.


But dollar denominated debt insures a dollar orgy for a long, long time. The global Central Banks, and the banking systems around the globe are hit wired into this global web, they can't change the game without a total global reset, total impossible. And if we have a reset or a shared basket in 20 years the USA will still be 50% of said basket.

Quixotic_Not's picture

I certainly hope you're right about dollar dominance, as I'm completely liquid in dollar denominated debt since 2007 (aside from my long-term Ag insurance store), when I went short-term T-Direct, but lately I've becoming more & more concerned things won't turn out so well for king dollar...

I'd hate to pull my ca$h and plow it into hard assets or another business venture too early, and I'm starting to lose my nerve!

Truly caught between a rock & a real hard place :-(

schoolsout's picture

for fuck's sake





FeralSerf's picture

Easy -- that's how we tell they're stupid.

Chump's picture

How incredibly myopic!  $-denominated debt is what has allowed us just to get this far.  What you call "a dollar orgy for a long, long time" is more practically described as "roughly 5 trillion printed and funnelled over 2ish years."  Boom, done.  And now we hang by a thread at the mercy of any random collection of brownish foreigners who happen to have the temerity to, you know, impose their own government.  Fucking ingrates.

Do you not see that our recent "dollar orgy" has turned relatively meaningless non-events into a dreaded *gasp* black swan??  This is what happens when you go all-in on sovereign debt.  One hiccup and you're back to plowing fields with a mule.  All the CBs are hammer-jacked, so it doesn't look good for us.

tmosley's picture

Awww, did I make you angwy?

Who gives a fuck who was the first to call gold?  You've been down on gold and silver the whole way up.  That's ten years of losses, and here you are pretending like you called the latest pullback.  You are the DEFINITION of a broken clock.

I don't know what the fuck you are talking about.  I haven't posted on SA in months, and I hardly post at all on RPF.  I don't post ANYWHERE else about gold, and never really have.  

LOL, BFD, right.  Silver, which I have encouraged EVERYONE to own, is up nearly fourfold from when I first started "pimping" it.  Anyone who has listened to you is now bankrupt.

Why do you even bother?  Wrong is wrong is wrong, and you have been nothing but.  Just shut up.