Marc Faber: "I Am Sure Governments Will One Day Take Away 20-30% Of My Wealth"

Tyler Durden's picture

We cautioned readers in 2011 that in a broke world in which the ridiculously named "muddle-through" has miserably failed, a global wealth tax seeking to expropriate some 30% of all financial assets is coming. As a reminder, back then we said that "all attempts to eliminate the excess debt have failed, and for now even the Fed's relentless pursuit of inflating our way out this insurmountable debt load have been for nothing.... The only way to resolve the massive debt load is through a global coordinated debt restructuring (which would, among other things, push all global banks into bankruptcy) which, when all is said and done, will have to be funded by the world's financial asset holders: the middle-and upper-class, which, if BCS is right, have a ~30% one-time tax on all their assets to look forward to as the great mean reversion finally arrives and the world is set back on a viable path."

Few took it seriously, and why should they - after all the market has been blissfully rising before and ever since then, which implies everything was ok, right? Wrong, as those who are lining up right now in the Cyprus late of night not to buy a shiny new iTrinket, but to access a measly €300 of their own money would promptly admit. Naturally, if more of our Cypriot readers had paid attention, they would have far more of their own money at their disposal right now, instead of having to beg Merkel's emissaries for a €300 handout tomorrow.

Now, a year and a half later, the realization that the global wealth tax is not only coming but is inevitable in practically every developed country, is finally sinking in, as this interview with Marc Faber confirms: "Until now, the bailouts in Europe and the U.S. were at the expense of the taxpayer. And from now onwards, in my view, the bailouts will also be at the expense of the asset holders, the well-to-do people. So if you have money I am sure the governments will one day take away 20-30% of my wealth."

He is correct, but probably optimstic.

His full Bloomberg TV interview is below:

The interview highlights:

Faber on whether he's participated in the equity rise in the U.S.:

"I think that I was relatively positive about U.S. stocks since March 2009. I haven't been shorting any stocks since 2009. The U.S. march is up and consumer confidence is down. Emerging markets are performing badly relative to the U.S., the dollar is strong, indicating a tightening of international liquidity. I do not think the U.S. market will go up a lot from here. I rather think there is now considerable downside risk."

On whether Europe can repair its house:

"They can repair it and actually Europe now has a current account surplus, which is positive. But obviously the economy is contracting. We are in recession in Europe. This will have an impact on the corporate profits of U.S. corporations as well because 40% of S&P earnings come from overseas, but the bulk actually comes from Europe and not emerging countries. I think that corporate profits in the U.S. will continue to contract as they have actually -- according to S&P -- contracted in the first quarter of 2012."

On why gold hasn't held up as a safe haven:

"When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn't flow evenly into the system. Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession. More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S. So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide."

On whether the raiding of bank accounts in Cyprus set a precedent for Europe:

"MF Global, the depositors were also raided. It is nothing unusual. Philosophically I believe that we shouldn't have deposit insurances, blanketed insurances by governments because it would force savers to be very careful with which bank they would deposit the money. The good banks would pay very low interest and take low risks and the banks that take high risks would have high interest. By the way, in Cyrus, banks were paying very high interest like in Lebanon at the present time I can get 6% on my deposits. So the depositors should have known that something is dangerous, but I would say that the principal now is very important to understand. Until now, the bailouts in Europe and the U.S. were at the expense of the taxpayer. And from now onwards, in my view, the bailouts will also be at the expense of the asset holders, the well-to-do people. So if you have money -- like I am concerned -- I am sure the governments will one day take away 20-30% of my wealth."

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diogeneslaertius's picture

"...Even in gold, it will be difficult to hide."

protip: be subtle to not get suicided

notbot's picture

Sorry, Marc, you are being WAY too optimistic.


The gov will eventually get nearly all of the wealth of your accumulated labor:

50% in income taxes (NYC - thank you may i have another),

8.5% sales tax on what's left.

Property tax on anything you own. That alone would siphen your wealth if you stopped working. And 40% inheritance tax above a certain level.  

Then of course there is the worst tax of inflation tax.  And if you try to hide from that in gold/assets, you are taxed on the gains so you pay your fair share.

I mean really, this is just insane.  And given the state on entitlements, those rates have only one way to go.  



Zer0head's picture

They promoted this interview as a 7am start from 5am this morning (Weds) and what did the pricks deliver - CFR's Dick Haas - I turned it off at 7:30 am so never got to see Faber

fuck BBG and fuck the CFR

and FUCK Tom Keene - freakish sell out ahole notwithstanding his soon to be young, blonde and plump bride (of Frankenstein)

tiger7905's picture

Canadian 2013 budget has provision for bail-ins like in Cyprus.



disabledvet's picture

"asset stripping." sorry but your gold is not safe up there. "the French bury there's in the backyard"...and are the wisest for having done so.

El Oregonian's picture

"YOU DIDN'T BUILD IT ON YOUR OWN" so, we're the effing gubbermint and we'll damn well take our fair share! !THAT IS ALL!!! Remember: "WORK IS FREEDOM!"

markmotive's picture

There is a global war on wealth and it's all so that governments can close the gap.

Watch out because tax loopholes are getting closed. Wealth taxes and outright theft may be next.

The Big Ching-aso's picture

Hey I think Marc should call it even and give me 30% now so at least one of us will be happier than the one just keeping 70%.

Say What Again's picture

Is anyone watching the ES sell off in the evening session?

Could this be the start of a big bunga bunga party?

TruthInSunshine's picture

I started believing that the U.S. would follow the U.K. in near lockstep, with a 35 to 50 year lag, about 4 years ago.

I grow increasingly confident in this scenario playing out with each passing day.

The U.S. (with New York City as its de facto capital, counterpart to London) has essentially seen its manufacturing based gutted, like England did, has seen the FIRE portion of its economy, and services in general, grow far larger relative to manufacturing and tangible product related industries, just as England did, has seen the Financial/Banking segment of the economy grow to represent a massive relative share of GDP, just as England did (with that financial/banking sector literally buying the legislative & executive brances of government, as well as regulatory bodies, just like in England), and is now seeing an incredible decimation of the financial health of the middle class (racked by massive levels of debt it has assumed in order to maintain a certain "lifestyle" since real wage gains have fallen far below real rates of inflation), with that middle class now being leveraged and drained in order to support the swipe-yo-SNAP-EBT/non-disability but getting disability/"free shit" class, the local-state-federal worker bureaucracy/government employee class, AND the oligarch/KomradeKapitalist/Financial-Banking-MilitaryDefenseContractor class...

...all based on massive perpetual annual deficit spending/massively growing accumulated debt (aka borrowing-begging-stealing from the future without any constraint)...

...just like England did and is still doing (don't let bullshit talk of "austerity" from douchebags like Krugman fool anyone b/c these statists are engaged in lies, damned lies and statistical masturbation).

aka Gil's picture

And eventually our government will order us to turn over our guns, just like in England.

TwoShortPlanks's picture

US$80 Trillion gap between Bank Assets (debt) and Bank Reserves?

Good luck with that.....Government know-it-all fucktards!


TBT or not TBT's picture

That is what universal background checks is for. And Obamacare mandates to force doctors to collect info about gun ownership, and data mining by govt agencies, profiling to predict who are gun owners.

morning_glory's picture

Don't forget the US also has Tony Blair 2 in the form of Oblamo.

TruthInSunshine's picture

Never forget that it's a fact that the economically strongest nations in history (I'm not speaking of small-ish wealth storage repository nations such as Switzerland or off shore islands, but large nations with reserve or competing-reserve currencies) had very large and robust middle classes as a total percentage of the population.

The (truly healthy, robust) middle class in such nations is hugely productive on a per capita basis AND they BOTH spend and save a PERCENTAGE of their income in a manner which is closer to optimal to maintain a healthy national aggregate demand for goods/services AND a national savings rate that fosters, rather than impedes, future growth.

So for all the talk of housing as a pillar and necessary element of a true economic recovery, or auto sales, or equity market performance, or blah blah blah blah blah by the total-shit-for-brains pundits, economists and clowns that populate the airwaves and publications, and who CAN'T RESIST putting the cart before the horse and falling into the "reflation of bubbles will bring about sustainable growth" slippery slope of logicFAIL, remember this--

The most important metrics by which to judge the relative and absolute economic vitality and financial sustainability of a nation such as the United States are (in order of importance):

1)  The number of jobs & % of workforce aged population working (or simply put, JOBS);

2) The number of jobs & % of workforce aged population working (or simply put, JOBS;

3) The real wages (in the form of compensation and benefits provided) paid to those with jobs.





The number of homes or cars or anything else being built or sold is a function of a more critical, foundational element of HOW MANY JOBS THERE ARE, and WHAT KIND OF WAGES DO THESE JOBS PAY?

The consumption of and investment in building things is derivative of  the # of JOBS & the level of REAL WAGES, and not the other way around, bitchez.

It's as simple as that.

StychoKiller's picture

Well, I'm tuning my painted-rock radio, putting on my coconut-shell headphones and calling in a large contingent of cargo planes, as we speak...

IdiocracyIsAlreadyHere's picture

Don't forget that it is the TPTB/Oligarch class that is paying for the "free shit" class and the bureaucrat class to make sure you build up and spend all of your anger on peons and don't focus on THEM.  Why do think JPM is involved with the EBT cards?  That way you can get pissed at the single mom with 3 kids in front of you at the Wal-Mart paying with EBT and forget who is REALLY stealing most of your wealth.  It also is no coincidence that Jamie Dimon appeared before congress with a Presidential lapel pin - subtle reminder he and his ilk OWN the government.  The same bureaucrats are paid both to make you life a hassle and be at their owners' beck and call.

chump666's picture

I am.

Seems China clamping down on the money changers big time and clearing excess money out of the system (repo's).  Which means China is inflationary to deflation wipe-out is all but locked in. You can see this in tight USD forwards and commodities trending down.  haha to think the idiot European leaders thought China was their whiteknight.

Also Cyprus banks reopen in a few hours.

For ES to really be on, we need over 2% wipouts and huge DXY bids, HK down over 3%.  But the EUR is looking very bearish. 

Then maybe we get our crash.

MythicalFish's picture

Oil is up and HK options volume low, don't think this is going to fly.

Panafrican Funktron Robot's picture

$5 billion POMO day today, biggest of the month.  

ChrisFromMorningside's picture

Everybody knows that the dice are loaded 
Everybody rolls with their fingers crossed 
Everybody knows that the war is over 
Everybody knows the good guys lost 
Everybody knows the fight was fixed 
The poor stay poor, the rich get rich 
That's how it goes 
Everybody knows 
Everybody knows that the boat is leaking 
Everybody knows that the captain lied 
Everybody got this broken feeling 
Like their father or their dog just died 


And everybody knows that the Plague is coming 
Everybody knows that it's moving fast 
Everybody knows that the naked man and woman 
Are just a shining artifact of the past 
Everybody knows the scene is dead 
But there's gonna be a meter on your bed 
That will disclose 
What everybody knows 

And everybody knows that you're in trouble 
Everybody knows what you've been through 
From the bloody cross on top of Calvary 
To the beach of Malibu 
Everybody knows it's coming apart 
Take one last look at this Sacred Heart 
Before it blows 
And everybody knows

dark pools of soros's picture

Which wealth?   Rothschilds don't seem to be losing anything

Renfield's picture

THANK YOU, Tiger. Very important for the Canadian side of my family to read. There is a lot of them, too.

The Big Ching-aso's picture

Someday we're all gonna die.  That's when Marc loses 100% anyway.

That and his phucking trademark hiding on t.v. ponytail too.


TruthInSunshine's picture

If you truly feel that way, go fill a 20 gallon container with QUIKRETE®. add proper amount of water. Stir until correct consistency. Sit ass in chair, then bend down & insert your head into it.

Let cure overnight.

The Big Ching-aso's picture

Yeah ok, yeah sure.   Will do.  Doofus.   I was being sarcastic you moron.    And btw, quit riding my huge following of fans posts so you get extra-attention hits.    Do it on your own.    (Am I serious?   Shirley not.)

OTOH, you can't take your wealth with you when The Reaper calls.   Now back to the point.  He's worried about 30%?    GMAFB.   Plenty in this world have never even known 0.03% of what he has much less what he thinks he'll have.     He has had it plenty good for a plenty long time.   Quit bitching about what might happen.   Until it happens it doesn't happen.   In the meantime with his wealth I'm sure he'll 'manage'.   

Cry me a phucking river already.   



putaipan's picture

30%? .... ok.-cool.

i just wanna know if he thinks chang mai is still gonna be cool to hang in.

TruthInSunshine's picture

Ching, don't get vagina hurt. That's so un fight club & you know it.

If I missed an obvious sarc, bad on me.

If you're now engaged in double fork tongue speak, bad on you.

I've seen chunks in my stool that were more intellectually substantive than whatever commentary you were attempting to make.

The Pamprin is to your left, and the Vagisil is behind your right shoulder...should you need them again.

The Big Ching-aso's picture

Hey, I'd stop looking at my stool that intently if I were you.    They can become kinda like tea leaves, monkey bones, self-determing shit like that.

Relax man.   Intellectually however please do make a back to earth personal note that you're no giant.   Please.    My ribs cannot take that kind of shaking, man.

TruthInSunshine's picture

The older I get the more I realize that I don't know.

This realization makes your comment supremely misplaced & ironic.

The Big Ching-aso's picture

Well if you're that old and admit you don't know shit why are you on here pontificating as if you know a lot?

TruthInSunshine's picture

I didn't say that I'm old (did I?). This may seem like a trivial point, but it actually speaks to your lack of reading comprehension.

As to your question...allow me to quote the words of a true philsopher king, s'il vous plait --

As we know,
There are known knowns.
There are things we know we know.
We also know
There are known unknowns.
That is to say
We know there are some things
We do not know.
But there are also unknown unknowns,
The ones we don't know
We don't know.

The Big Ching-aso's picture

You said the older you get the less you know implying that you're up there in age.     My supposed lack of reading comprehension vs your playing with words to leave the guessing up to whomever as to what you truly are.   Knowledgeable or not so knowledgeable.        

So which are you TIS, older and thus wiser or younger and thus not so wise?      If you think you know a lot then say so.  And that should come with age.   You know, experience.    I have no problem with that.   That shows a Socratic confidence that commands respect.       But don't hide behind the older I get the less I know BS and then pontificate ad nauseum as if you know a lot - a false humbleness when I hear it.    You either know or you don't.    Obviously you must understand some things much better than others else you wouldn't be correcting their mistakes.   Right?    I have no problem with that either.

This is Fight Club afterall.    Confidence reigns supreme.   Even if it's misdirected.    Your parry.


TruthInSunshine's picture

 "You said the older you get the less you know implying that you're up there in age."

There was no such implication.

If I were 18, the same statement would not "imply" that "I was up there in age." 

If I were 22, the same statement would not "imply" that "I was up there in age." 

If I were 26, the same statement would not "imply" that "I was up there in age." 


"The older I get" implies nothing about the current, objective age of the person making the statement.

The Big Ching-aso's picture

Your debating skills playing with words here are how should I say, absurd.     I think it's time for me to quit because quite frankly you're too FOS to go any further.  

TruthInSunshine's picture

My debate skills are merely revealing your complete lack of intellectual gravitas (though that was not and is not my goal). As an additional point, you still obviously don't even understand the basic meaning of the statement that I made, which you're obsessed with somehow parsing, even though it's perfectly unambiguous.

The Big Ching-aso's picture

You're right, I don't.   It doesn't make sense in context and perspective.

TruthInSunshine's picture

I will keep the down arrows you've provided me, while not "negging" you. Take that as a consolation prize if it helps your sense of self-worth.

Hopefully, you will refine your reading comprehension, deductive logic, analystical reasoning and communication skills.

AssFire's picture

To me this is like kids that can't wait to inherit what they consider their birth right.

The Gov. takes basically half through taxes while you are working, then debases it with QE so the life savings are not worth nearly as much as when you were earning it then those fuckers come in and take half of whats left when you die--- only now they can't even wait for you to die!! They need a 20-30% cut before you die.

The Big Ching-aso's picture

The moment you squirt out the womb you're already part of a losing bet thrown onto the world's ante pile.  

Shit.   That was cheerful.


AssFire's picture

Socialists like yourself always have that type of attitude. Having never won at anything your whole life you trivialize the whole concept of responsibility... You lack respect for life- it is obvious you have never witnessed a birth and had dreams of you own for your children.

The Big Ching-aso's picture

Dreams are one thing, reality is another.    All is vanity.

Btw, you don't know shit about me or what I've witnessed or have done.     Your petty presumptiousness and self-righteousness and self-importance notwithstanding.

Also do not judge others by their occasionally shitty sarcastic posts.    Like the one's I just made.   But, there's also a stinging truth behind them that's apparently irritating you and TIS's anus like a sandy Fukushima sea cucumber.


IdiocracyIsAlreadyHere's picture

Uhm, where anywhere in his comment was anything that spoke of socialism?  Or lack of "respect for life"?  Same old shit thowing out insults to those who don't see the world your way.  Grow up.

Panafrican Funktron Robot's picture

I'm actually with you on that point.  Which is why my wife and I decided on 4 spawns.  We're figuring at least 1 will do well enough to keep the other three alive when we're gone.