"The truth is, the debt ceiling doesn’t actually limit government spending. It’s a farce. Every time government debt gets close to the debt ceiling, Congress just raises it.”
In an interview on CNBC's "Trading Nation," the Gloom, Boom & Doom Report editor revealed he may not be as bearish as some may think and that he is actually a “great optimist.”
China Margin Debt Hits 8-Week High, Japan Pumps'n'Dumps As Kyle Bass Fears Looming EM Banking CrisisSubmitted by Tyler Durden on 10/27/2015 20:21 -0500
Following Marc Faber's reality check on China recently, Hayman Capital's Kyle Bass took a swing tonight noting that "China's 7% GDP growth is a farce," and adding that, just as we detailed previously, China's credit cycle has begun and non-performing loans will rise rapidly leading to an emerging Asia banking crisis ahead. Japanese markets continue to entertain with "someone" insta-ramping NKY Futs 100 points at the open only to give it all back as USDJPY slides back towards 120.00 (and 10Y JGB yields drop below 30bps for the first time in 6 months).
"Investors should (and most don't) realize China is a credit bubble of epic proportions," warns an anxious Marc Faber during a brief Bloomberg TV interview. "China is not just a country, it's an empire," Faber adds, and warns that while some sectors may have growth ("just ask Yum Brands" he jokes), "but other very important sectors like industrial production aren't growing at the present time." In fact, Faber warns "I don't think China's economy is growing at all," and while policy-makers may be able to "cushion the downturn somewhat," he warns that achieving any soft-landing will be "very difficult," even as he expects China to continue devaluing the Yuan.
Marc Faber is an eloquent advocate of owning physical gold which he describes as being a way to become “your own central bank.” He believes an allocation to physical gold will serve as vital financial insurance and that Singapore is the safest place to own gold in the world today.
Sometimes less is more (less good data is moar good for stocks) and in the case of Marc Faber's recent appearance on Bloomberg's "What'd You Miss", 66 seconds of honesty was all that the hosts could take. The Gloom, Boom & Doom report editor notes "we have had a meaningful decline in many stocks already," and warns it is far from over as market face two possibilities of "longer-term unattractiveness": "a 1987-style collapse," or a 1973-74-style slow "sliding slope of hope."
Since the 2008 crash there has been much talk about how the fundamentals have not been dealt with and the fact that the can has only been kicked down the road. Political mavericks and commentators such as Ron Paul have frequently pointed out that nothing has really changed and that we are heading for even bigger disasters ahead if we continue to play ostrich... The truth is that we never left the economic downturn – we are currently in a period of manipulation that’s sole purpose is to mask the fact that there has not been a boom (or recovery if you like) to trigger the next bust.
Fostering dependence on irresponsible banks and a still very vulnerable banking sector will make the entire western financial and economic system even more vulnerable.
Five Chinese navy ships are currently operating in the Bering Sea off the coast of Alaska, the Wall Street Journal reported Wednesday, marking the first time the U.S. military has seen them in the area. Why the sudden interest? Because the Chinese have been studying the cycles. From generational theorists William Strauss and Neil Howe, they have learned that political/cultural cycles last only 65 years, and then they collapse, cycles first observed by Taoist monks and Roman philosophers. And China is exactly 66 years advanced since the Chinese Communist Revolution of 1949. In terms of generational cycles, China is on the eve of destruction. (In terms of the Strauss/Howe theory, so are we.)
Respected economist and historian and the editor of the ‘Gloom, Boom & Doom Report’ Marc Faber warned on Bloomberg TV’s Market Makers yesterday that there are now “no safe assets” including deposits and said that he is focusing “on precious metals.”
Markets have "reached some kind of a tipping point," warns Marc Faber in this brief Bloomberg TV interview. Simply put, he explains, "because of modern central banking and repeated interventions with monetary policy, in other words, with QE, all around the world by central banks - there is no safe asset anymore." The purchasing power of money is going down, and Faber "would rather focus on precious metals because they do not depend on the industrial demand as much as base metals or industrial commodities," as it's now "obvious that the Chinese economy is growing at nowhere near what the Ministry of Truth is publishing."
Demand Surge and Shortages of Bullion as Stocks Fall Sharply, Gold Outperforms All Assets In August
"I do not believe that the global economy is healing. I believe that the global economy is heading into a slump once again... It's not a pretty picture. All those people who say they will buy... I wonder if they still have money?"
"They'll Blame Physical Gold Holders For The Failure Of Monetary Policies" Marc Faber Explains EverythingSubmitted by Tyler Durden on 08/09/2015 18:00 -0500
"The future is unknown and we are not dealing with markets that are free markets anymore...now we have government interventions everywhere. [But] in the last say twelve months, I have observed an increasing number of academics who are questioning monetary policies. That's why I think they will take the gold away and go back to some gold standard by revaluing the gold say from now $1000/oz to say $10,000 dollars. An individual should definitely own some physical gold. The bigger question is where should he store it? because... the failure of monetary policies will not be admitted by the professors that are at central banks, they will then go and blame someone else for it and then an easy target would be to blame it on people that own physical gold because - they can argue - well these are the ones that do take money out of circulation and then the velocity of money goes down - we have to take it away from them... That has happened in 1933 in the US."