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Marc Faber: "I Think We Are All Doomed"
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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Oh, doomity doomity doom doom doom.
Yes, the market will go down. Ultimately, you'll probably see Dow:gold of 2:1, if not 1:1. But then things will get better.
In the meantime, it's pretty frickin' easy to make money on the market, both on the bull and bear side. Quit worrying about stuff you can't control.
And if anyone is stockin' up on the gold and ammo because they're afraid of the coming post-apocalyptic Turner Diaries race-war or whatever, then I just gotta shake my head.
Here are two comments from Bender on the topic:
http://www.youtube.com/watch?v=_49iNqxOnH4
http://www.youtube.com/watch?v=wpFg52bpzZM
And here's the Newsmonster:
http://www.youtube.com/watch?v=DMSHvgaUWc8
I really enjoy Marc Faber, and he's usually correct about the macro issues. Seems like a straight-shooter, but I'd be really disappointed if he turned out to be an Israel-firster like our politicians and media.
Yeah you know I heard Obama was a lizard jew from outerspace.
..don't be a FOOL!
Not to worry, he used to trade with Soros. - Ned
No way this could happen, i just read warren buffet saying that americas best days are ahead and housing is going to recover next year.
And I watched a Coca-Cola commercial yesterday, with a kid telling me how good Coke was for you since his Dad got to drive the big, red Coke delivery truck.
I guess foodstamps can still buy a healthy drink like Coke.
Thanks Warren. America's best days are just ahead.
If you live long enough, most will get dimentia, or Als, before they check out.
Warren, may be close.
Just seems like common sense to me. Better to have it and not need it than...you know. Grocery stock just gets rotated and you're one step ahead of inflation. Rum never goes bad, but can be hard to keep in stock, the same as bullets. Metals beat paper hands down in my world. Each to his own.
DICHIARAZIONE DI GUERRA DI BENITO MUSSOLINI
http://www.youtube.com/watch?v=og0EinKrAVE
Central Banks are counting on new slave revenue streams.
1% dollar flashcrash. Is that bullish? King Dollar!
S'good for ze palladiummm y platinummmm. [ thanks again PM dip fairy! ]
Love me some Faber -- no surprise that half the people bagging him and Lindsey Williams are either shills for Wall Street proper or suffer from Normalcy bias. I'll take Faber's track record anyday of the week -- he doesn't say get our of stocks -- he points out the nominal verses real pricing of the system; and to not let today's price be your guide in anything as well as to understand the macro picture (for all you muni investors out there).
....lets just assume Ben keeps the POMO rolling...then the question is owning which asset is the best defense, and Faber has commented on that subject repeatedly
I have been reading his newsletter for years and overall would say he is right far more often than wrong.
Weimar Germany shows that it was better to own stocks than bonds. It was also probably even better to own gold or silver. Maybe wheat was even better?
I think the first thing to decide is what you do not want to own; having decided correctly upon that, then one's choice of what to own will determine the relative performance.
Well stated -- people are taking his "we're doomed" statement to mean Apocalypse and while that may be the case for some people (see Middle East, possibly Southeast Asia), clearly markets go on - I've heard him say 2% is a good return in a doom situation, because it's better than not losing money; which by definition is correct.
I can only give hints based on past history.
Housing Bust Recovery in 1930s
The "Roaring" 1920s
Did You Ever Lose a Million Bucks?
Wall Street Crash / RMS Berengaria
La crise de 1929
This accelerated ME meltdown has been tried so many times. Same guilty party.. banks. If you pull your money out from the enabler, watch how nice they become. No monies in their coffer equates to zero deposit payment to IMF. The house of cards fall automatically.
I think Faber gave good advice over a year ago when he said everyone needs to be their own central banker now. As far as wars, shit just happens in times of economic and political uncertainties.
"Obstacles make you clever" - Ho Chi Minh - hell, he would make a better US President even though he's dead
Smart ole Commie Bstd, same as MSM, working the sheeples.
TET, we almost made them surrender,days away, 52's Carpet bombings, they were weeks away of saying NO MAS!!!!.
But, our MSM, lost the war for America,by using a daily grind of misinformation, disinformation, and keeping the proaganda reel rolling 24/7.
And so it is yet again, just a different war this time.
in Giap's book!
What is so neat about both your comments is how the leftists, their is no difference you know, will not touch this subject with a ten foot pole.
Not that Nam" was all that but the MSM narrative, the media enables all of this to occur, all of it from regulatory capture to the circular motion of FED, PD, Timmy circle jerks the media is behind it all. It is frankly all that explains ZH and similar successes.
THE DOLLAR WILL RISE AGAIN
and many on here are in for a rude awakening when correllations re-assert themselves. (for 3 or 4 months)
Relative to PMs....or just the EurOooh No Mr. Bill?
Buy silver, comrades!
The fiat paper USD is kaput.
This shit stinks.
"Beware the moon lads . Stay on the road, Keep clear of the Moors".
AWIL, that was an outlier but loved Jack in the theater..
Speaking of equities, can I get an opinion on GRMN and LPHI? These are about the only two stocks that seem resonably priced enough to garner returns? I have gold/silver as well, but I thought I might get at least a little exposure to the market. What say you?
Listening to Faber makes me want to start goosestepping around the room for some reason............
++++++++++++++++++++++++++++++++++++++++++++++++++++
lol
"I Think We Are All Doomed"...you mean no one is getting out here alive????
according to the author 'doom' is a 10-15% draw down in home prices
One man's doom is another man's extra bedroom.
Mr. Faber respectfully. Take that cone and plant/insert it, into/attach on or in a SCUD, with North African co-ordinates. You should yield a kiloton of wisdom.
If you thought there were troubles in the world, take a look at Bozeman, Montana.
http://www.bozemandailychronicle.com/police_reports/
Are these guys paid by the report?
- A coating of paint dried and instigated a debate about whether it was the same color as the paint chip in the store
- A date rape was narrowly averted when the sex became completely consentual after a second glass of wine
- An insecticide occurred at approximately 3p when the victim, a junebug, flew into a 'zapper'
Film at 11.
Lmao, is this real?
"A group of teenagers hanging around a construction site on West Lamme Street around noon weren't doing anything; they were just hanging around."
From the 2/22 reports.
A legend.
Crack up boom = prices start to rise thus adding to GDP, beginnings of inflation ala the Fed. he is probably right we are in the endgame now.
doom = opportunities, you knuckle heads!
nice price re-set. own tangible assets when the SHTF
Unless said tangible assets cannot be carried with you or are subject to property taxation.
if we are looking at the endgame as far as property, you own the title it's yours. they start taxing it, so be it. point is, when inflation/deflation hit people that owned property property with low gearing did really well. buying cheap land, no house, that would be a good start i reckon
you think doom is comming.its already here http://educate-yourself.org/cn/ianbirkspdmurderer18fab11.shtml
Guess he should've dropped the knife, huh?
and pants
and ethnicity
Divided my screen into 4 windows:
1) Finviz weekly graph of U$D index at 77.31, sitting on and ready to break the 3 year uptrend support at 77, heading temporarily to support at 75 and then to 72, putting Au at $1510.
2) Au at 1414, ready to break 4 month triple-top highs at 1425.
3) OSX at 288 heading to round number 300 and above, parabolic.
4) WTI at 99.63, up 1.75 tonight, pointed at round number 100, reflecting ongoing ME trouble and increased drilling demand.
Better than flying the plane: scan the instruments, with popcorn.
Just got back... (btw... HOB- sponsor CITI bank)
Want to talk inflation?
At the House of Blues only 1.5 years ago I was able to purchase a 24 OZ Miller and/or Bud Light for $9 dollars a pop.
Tonight, it cost me $11 dollars for that same beer.
Sure enough... got punched in the nose (took a picture to prove it- will think about posting later).
Between sets some african American fellow was selling bottles of water for $4 bucks... The crowd was sweaty after running into each other for 4 hours... NO S*** people paid! Passing Federal Reserve notes left and right (no Credit Cards- so no hiding off balance sheet)
If you people still doubt Dr. Doom... I have nothing else to say to you other than GOOD F***ing LUCK!
http://www.youtube.com/watch?v=UyMPLiizIzg
Australia's Reserve Bank Board member isn't too far behind Faber.
http://www.theaustralian.com.au/business/bigger-bubble-is-building-says-...
Thank You Zero Hedge for another Super Great Post. It is why I read ZH. It is truly pitiful that a few who do not believe in Faber and his outlook would argue that he is in some way wrong. To post mindless drivel to confuse the truth from someone smarter than they. I don't know. But what a waste of space and time for your readers. The man has been correct for many years. Most likely more years than some of his nay-sayers are old. Maybe they should just simply grow up and learn. And even make a little profit from the wise one. I guess it is true. Wisdom does only come with age and experience. Was it not Mark Faber who said a while ago. Bernanke will print so much that All Asset Classes will go up .?! Now he says the Dow Gold ratio will be even as it was before. So if you want to profit, simply figure out what has to go down and what has to go up to verify that ratio. It is so simple. Which one has the best opportunity to move the most. Gold up, or stocks down. I already know which direction my investment money will favor, (hedge), from this point forward. Do the nay-sayers ?
rocker, rock on! Those of us who have been in the investment business for a long time know to take everything these great pontificators say with a grain of salt. I like Faber too, but this was just more shameless seld-promotion. They all do it, including Bill Gross of Pimco. There is no need to get too excited, I assure you, the sky isn't falling. Keep buying them dips!
And "house prices always rise", eh Leo?
Enjoy your dance with the Devil.
If by dance you mean deepthroat...
rocker, rock on! Those of us who have been in the investment business for a long time know to take everything these great pontificators say with a grain of salt. I like Faber too, but this was just more shameless seld-promotion. They all do it, including Bill Gross of Pimco. There is no need to get too excited, I assure you, the sky isn't falling. Keep buying them dips!
Oh, investment business.
Time to punch a Hedge Fund hyena in the throat.
Some of us might invest based on what we read on the internet.
TIME TO GO ON RECORD, SON!
Tell me exactly what is coming, including who the next allied power(s) will be in the next world war.
If you cannot provide these answers. Your opinion is totally worthless.
Marc Faber is on record saying the next (...in the series) will be Saudi and Pakistan.
Read, set, go... Mr. Fund Manager
What did you think about the Charlie Sheen interview late last week?
I loved the anger! Although he might have discredited the "patriot" movement in the US.
Jim Rogers Interview:
http://dawnwires.com/investment-news/jim-rogers-interview/
I bought a factor company in Japan
China Premier: We will be bankrupt.................
http://dawnwires.com/investment-news/china-premier-we-will-be-bankrupt-if-there-is-hefty-appreciation-in-yuan/
Earthquake in Arkansas. We are doomed.........
this one woke me up, I am about 90 mi from there.
http://earthquake.usgs.gov/earthquakes/recenteqsww/Quakes/nm022811a.html...
http://earthquake.usgs.gov/earthquakes/dyfi/events/nm/022811a/us/index.html
NASDAQ got within 21 pts of breaking the 2007 high, and the SPX will break the 2007 high this year..the NDX has far surpassed the 2007 high. If this video was from 2008 I might have watched it.
2008= 1929.... Say what you will about Celente, in 2007 he said "Panic of 2008".
Banking Panic= Great Depression
Beranke, Dr.= "Not gonna let it happen"
Banks are solvent. but not.
Printing money= QE4Ever (to hide the cardinal sins)
Late 30s- 40s GREAT WAR
We are getting that now, but it will get worse
Hilarious. Ghadhafi dancing with girls.
http://dawnwires.com/uncategorized/muammar-gaddafi-dancing-to-zenga-zeng...
Hilarious. Ghadhafi dancing with girls.
http://dawnwires.com/uncategorized/muammar-gaddafi-dancing-to-zenga-zeng...
Barrack Obama pardons Berni Maodff. All charges dropped
http://dawnwires.com/lol-news/barrack-obama-signs-state-pardon-for-bernie-madoff-all-charges-dropped/
Why did you take down the embedded video?
Faber and Rodgers have been correct for years. They have saved my financial ass. Thank you both, I hate liars.