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Marc Faber: "I Am Sure Governments Will One Day Take Away 20-30% Of My Wealth"
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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More disinformation and Keynesian twaddle.
There is within 10% as much gold today, per capita, as there was in 1900 and in 1800, when gold was the foundation of most of the world's monetary systems (silver supporting the rest). If we had 'enough' then, we have 'enough' now.
Absolutely right. There is plenty of gold. You just have to pay the price.
Precious metals, of course, but anything of value that can be bought and sold outside the credit system; food and crops, stored food and materials, upmarket furnishings.
I'll trade you half this antique credenza for 2 goats and 3 dozen eggs...
In the book "When Money Dies" the author tells a story from letters about a well-to-do family that traded a grand piano to a farmer for a winter's worth of potatoes.
Just saying. Deals can always, will always be made.
The most important thing I learned from the few years of sales that I could tolerate is everything is negotiable. Understanding your opponents position is everything.
NEWSFLASH!!!!!!!!
You can hide, but in disposable and fungible assets. Precious metals, of course, but anything of value that can be bought and sold outside the credit system; food and crops, stored food and materials, upmarket furnishings.
You won't be able to hide in financial instruments, that's all :).
You will not be allowed to HOLD these either, as they will consider it HOARDING, any home that has a two or longer WEEKS of food and water now= Terrorist.
Odd, that FEMA always has said to hold that same amount as a minimum.
There are several PDD"s and EO's explaining these WILL be taken in the event of a emergency / or percived emergency.
Nothing new to have segregated accounts raided? Does he golf with Corzine?
Molon Labe? Yeah. MOLON LABE
Yeah. Gold might drop 30% to $7000 in a big correction some day. It will be horrible. How will I survive. But for now, it is 20% cheaper vs the money supply than it was at the bottom in 2008. And after a few more months of QE, it will be as cheap as it was in 2000, at the peak of the dot com bubble, vs the money supply. I think I'll hide here easily. Thanks for the advice.
:) more proof that people have no clue at all about what is really going on, and dont understand economics. your assuming massive inflation before a crash, but there are lots of indications that there will be crash before high inflation. Do you think banks being restructured and haircutting depositors is inflationary or deflationary?
...Do you think banks being restructured and haircutting depositors is inflationary or deflationary?
I think it's transitory.
You're the clueless one here, chump. If the banks seriously start being restructured and there are haircuts, it means the monetary system is teetering and gold will be seen as a safe haven.
And if/when the monetary system is teetering they'll print like there's no tomorrow.
We already have massive inflation. The money already exists. You just don't understand what money is or where it comes from. Did you not see the news about the big helicopter full of extra bailout money for Cyprus today? The money that had been there exists in someone else's account. Money was created at the time of loan origination. Now it is doubled because of a bailout.
The problem in Cyprus that is wrecking Europe is not deflation or inflation. The purpose of a central bank in a 10 x 1 leveraged system is to backstop other banks so they can leverage up and people won't pull their money out.. That is why they exist. That is what a central bank does. When a central bank starts picking other banks to die, there is a problem. You cannot have a system this leveraged without a central bank because everyone knows it is already bankrupt. No one would put any money into it. Would you give JPM any money if the Fed wasn't bailing them out? So now they are taking money out of Euro banks because the ECB is not trusted to do its job correctly and is wiping out people's accounts.
And really, stop with insults. You just make yourself look bad.
everyone is looking stupid trying to make others look stupid
without high velocity and lost of confidence in currency you don't get massive inflation no matter how big the piles of money are
if all the rich hold onto the money since they are fine with it, and all the rest are too broke, then prices can't climb
Peope don't lose confidence in pieces of paper. They lose confidence in what you can do with them.
Watch the velocity of money in Cyprus. Where are the rich (anyone) going to put their money? In a bank?
The immediate effect of printing money is LOWER velocity. If they doubled the money supply today, velocity would get cut in half immediately. Stop listening to other people on TV and think for yourself. The last step in the velocity computation is to divide by the money supply. QE3 and QE4 are going to kill velocity for the year. But it is still massively inflationary and prices will still continue to build up steam.
Someone that gets it, for everyone that gives me negatives when I point out that even gold will go down in a crisis. Gold is INFLATION hedge and not safe in deflation and overleverage is DEFLATIONARY. Best place to hide against deflation is CASH, as in REAL PHYSICAL dollars, so your best off to hold some gold AND some physical currency, nothing is better then the dollar, to this day (though could argue might want Canadian dollars).
Like Faber a lot he is not afraid to tell it like it is.
We have not had deflation since 1960. A bad economy is not deflation. Aside from that, gold will go up during deflation in fiat currency as well. Deflation kills the banking system and the currency in debt based fiat. That is a path to instant hyperinflation.
Things deflate vs gold. Fiat hyperinflates vs gold.
Clueless... totally clueless... gold deflated 30% vs dollar bills in 2007/2008 fed just re-inflated it. Oil is better indicator of inflation anyways, not as much speculation from gold bugs. gold was at 300 or so for a long time and then shot up due to fear. so you have seen 5x+ increase in price, dollar has not lost 80% of its value in last 13 years, so by your own definition gold has outran inflation by a large margin, so if your going to preach to the ignorant at least use some facts and logic.
LOL. Gold was at all time highs when the stock market was at its lows in 2008-09. ALL TIME HIGHS. It didn't deflate. It traded furiously in a wide range. Why don't you look at a chart of gold vs the S&P. S&P low. Gold high.
Also, don't insult peoipel that are educating you. You clearly understand nothing about banking or the monetary system. It isn't fear that moves gold. It is the reality that nothing else is money and the reality of a dying banking system that creates what you think is money.
And yes, the base money supply has been inflated by about %400 in the last 4 years. Inflation is printing money.
Oops, your ignorance is showing.
If gold only "shot up due to fear", then what, pray tell, caused its almost tripling in price between 2001 and 2007, BEFORE the global financial crisis had ever begun?
You deflationary flat-earthers always crack me up. Have fun going bankrupt holding your appreciating fiat currency, LOL!
Hey chump, if oil is a better indicator of inflation, how much has it gone up? Not as much speculation 'from gold bugs'? What, you're saying oil isn't subject to speculation? LOL.
And you're cherry picking dates - how much has gold gone up in the thirty years since 1983? And how much purchasing power has the dollar lost in that time? See? Easy.
Canadian Dollars.. considering all the tin foil in this house, I find it curious that no one hardley mentions all the other "Unions".
The North American Union, South American Union, Pan Asian Union, African Union, etc... It's all setup and in place, with NGO's - in broad daylight. They all have treaties and central banks - it's a parallel universe never mentioned. Why else is the "border' almost as ridiculed as much as the TEA party. It's so last century.
don't forget the queer unions- our constitutional sell-outs in the SCOTUS are working on that right now. good to see our priorities are "straight"( pun intended)
The government can decree that all previous cash is no longer legal tender, and issue new bills worth less in nominal terms than the old at any time. It has happened before.
Good luck.
Ozzz I have been saying physical cash is king time and time again and I usually get ripped by most on this site....when every asset goes to shit, there will be a run on those physical dollars....start stacking benjamins.......
Next year in deflationary Jerusalem!
Lol....I knew I'd attract you with that comment....the word Deflation is like the bat signal for akak ;).........
I am nothing if not consistent.
;-)
Nothing and no one is saying you can't have BOTH CA$H and gold...
but this IS zero hedge... all or nothing!!
Happy belated 2 year zh birthday to me....2 years preparing for the shit to hit the fan and what do I see? Dow at all time highs, the value of my home rising, the dollar index climbing back up, gold prices stagnant, the eu still intact, Obama still president, unemployment numbers dropping, my food supply going stale...holy shit bernanke should be on mt Rushmore :) .......
"Look, honey, at how the water is receding! Let's walk out there and gather up some of those lovely fish!"
Brilliant analogy
Akak, the tide has been out too long for some people and they're beginning to think those plastic fish they're collecting are real. Unfortunately the longer it is out the greater the wave is. My grandma long ago was a manager of a hotel on Kauai when she got an alert of a tital wave. She sounded the alarm for the hotel to evacuate. Many ran to the beach to see the wave and she couldn't save them. A lesson I remember.
Miffed:-)
You're right, all is good. You conviced me to take out an equity line on my house I've been in for seven years tomorrow and take my wife to the Four Seasons Maui. Fuck the garden suite, for 2k a night we can do a partial ocean view. I'll request 6 cases of the $9 Fiji 12 oz waters when we arrive. God bless Ben!
Don't forget to put the rest into stocks.
Buy buy buy!!!
Kito that is Awesome!!!
Luckly I'm an ignorant sheeple....Consequently, my net worth is going to the sky over the last 4 months!!
I guess stupid is as stupid does....
Congrats.
And I agree... when things go south, ALL asset classes will fall for a time. The buying opportunity will present itself for those properly positioned.
$20s are better to stack-alot of places won't even take $50s now
don't forget - pre-gietner benjamins will still be worth more outside the states than inside, and supposedly we'll still be able to take 9999.99 of 'em out for a 2 year vacation. mmm...livin' large poverty stylee'.
I see the US printing 85 billion a month and its open ended. I see very low growth which will help in not creating rapid inflation. Over time though like 10 -15 years the inflation will grow, the debt will grow, and interest payments will grow. The Fed will always continue to buy it helps the banks and also helps exports. Its just hard for me to see MAJOR deflation. I see the US continuing down this path until our bond rates go up and we either default or double down and print more. Dont see us defaulting so more money printing. By the time we see our rates go up asset prices will be so high that even a major correction will still be above where the market is today. And if its a huge crash and say assets lose 90% of their value the Fed would print soooo many dollars it would be insane. I think this process will be a lot slower and less dramatic than a major collapse.
I dont understand why he thinks gold wont be a good place to hide during a systemic collapse. Everytime the system fails in a nation and the people's wealth is lost gold and silver play an important part. Is he looking at the paper price only because physical demand is only growing plus central banks are buying to shore up their reserves. Sure the FED has killed the price mechanism but gold is money people buy it because the system is losing confidence. So under a systemic failure as he puts it why not have gold and feel good about it?
He misspelled 100%.
It would be incredibly stupid, imagine for a moment that a government took money from someone who is in charge of nukes, don't they think maybe that person might be a bit annoyed, maybe even out for revenge? It's a recipe for complete disaster, for all of us, are they really that stupid that they are willing to be vaporised in a nanosecond just for their greed?
You asked, "Are they really that stupid..... just for their greed?"
Based on the Troika press conference early Monday morning.... and comments made in the 24 hours afterwards...... You Asked Whaaa?
There has never been a better time to invest in real estate.
farm land...
The supplies for farming come from where? Sometimes the weather doesn't co-operate and the crop doesn't come in.
Look! a plague of locusts! Roving bands of armed and hungry people!
Ah. the pastoral simplicity of it all.
I'm a farmer surrounded by farmers..
Maybe you see them as problems...we don't.
LOL
Farmers are going to rule this planet...Smart, wealthy farmers that are prepared.
It's all going back to simplicities..
make it complex as you want....You don't eat, you don't live.
Your Gold and Silver coins buys my food....
Amen. We are getting into aquaponics currently. When confidence is lost in paper fiat it will be gone for good.
well.... maybe very highly super duper armed and defense farmers will rule
remember the Kulaks and recently those in South Africa
http://sagenocide.blogspot.com/
http://www.bnp.org.uk/news/national/murder-white-farmers-south-africa
start trenching that moat
I want some. Eager to pursue permacultur, Sepp Holzer style. Currently drive a desk.
We use many of Sepp's Ideas, especially his pond ideas.
The guy is a legend...
It's actually a worrying interview. When he says that safe havens will be void for poor and rich.
Not good.
The US is different than Cyprus. The US has the Fed, which will buy up any and all bad assets, printing whatever money is required in order to do so. So in the US, the wealth tax will take the form of inflation. Actually, we already have a wealth tax. But it will get much worse when people finally start to avoid US debt.
20-30% confiscation sounds very low to me. Is Faber becoming an optimist?
Selective confiscation may be adopted. Grass roots will be knocked by 90% and bankers will be exempted.
quick let's all open Kosher stores!
I'd really like to see the day when German troops (under the EU banner) go door to door in Greece to confiscate any gold held by the public, and hang family members when they smell non-compliance.
Goldman hikes 10 year yield forecast to 2.5% by the end of 2013. Look out below!
Contrary indicator anymore
http://www.youtube.com/watch?v=T7zR3IDEHrM
"nevermore" Goldman Sachs..."nevermore."
This seems totally fair to me. Mom and dad work their entire lives doing three jobs and then some profligate spending bankers wipe out 4-5 of the last 12-15 years of their lives.
Fair's got nothin' to do with it...
That he not once mentions gold price manipulation shows that he is "safe" for MSM.
Schiff and Celente fall in the same category. They must reckon that if they ever even mention it they'll never get invited on MSM finance shows again.
Somehow the "well-to-do asset holders" phrase sticks in my craw. As if there is a segment of the population other than the 1% that fits this description.
Just not right...
Best to invest in fine art, there is no way the bogan-infested petit bourgeois legislators of the day will be able to pass laws against culture. Long- ineptitude
that's why I'm pissed I have to give back that stuff I got from the Isabella Gardener Museum heist to the Feds
Art ? Huh, are you joking? WTF ?
If you can't eat it, shoot it / shoot with it, drink it, or stack it you had probably re-think your strategy for holding your "wealth" in the coming years...
You can stack art, it just requires careful crating and high celings. However, the notion that the State won't covet and seize art is ignorant, and not just of Nazi plundering in WW2 but of US civil forfeiture practices TODAY.
40 acres and a shovel.
40 acres and a shovel.
A mute helper and several bags of quick lime...makes problems go away.
100-200k is rich...lol.
Where have all the flowers gone?
Long time passing
Where have all the flowers gone?
Long time ago
Where have all the flowers gone?
Girls have picked them every one
When will they ever learn?
When will they ever learn?
Where have all the young girls gone?
Long time passing
Where have all the young girls gone?
Long time ago
Where have all the young girls gone?
Taken husbands every one
When will they ever learn?
When will they ever learn?
Where have all the young men gone?
Long time passing
Where have all the young men gone?
Long time ago
Where have all the young men gone?
Gone for soldiers every one
When will they ever learn?
When will they ever learn?
Where have all the soldiers gone?
Long time passing
Where have all the soldiers gone?
Long time ago
Where have all the soldiers gone?
Gone to graveyards every one
When will they ever learn?
When will they ever learn?
Where have all the Obamabots gone?
Long time passing
Where have all the Obamabots gone?
Long time ago
Where have all the Obamabots gone?
Covered with flowers every one
When will we ever learn?
When will we ever learn?
I see what you did there !!!
Yeah because directly stealing 30% of people's wealth to save banks which caused the systemic meltdown in the first place won't lead to a complete revolution... The sheep do not really undertsand what it means when "taxpayers" bail out banks, but when they see their bank account statements with funds missing, they may this time finally realize the magnitude of the thievery that has been occuring over the past few years...The streets will burn, the drones will attack, and we better hope they do not false flag us into 1984...
If they haven't risen in their might yet they never will. Remember, you can shear a sheep every year but you can only skin him once.
I'm sure it won't matter losing all 100% when Marc meets Maker; won't to me either so I'm living large making fun today.
Yup, fuck tomorrow. That's pretty much the attitude that is driving this fucker right off the cliff. Thanks for doing your part. I guess. /sigh
Wait tyler, so it's not hyperinflation as the endgame now? The path to a viable future is the global wealth tax and global bank bankruptcy? That's it?.......what are we all worried about?
There is an endgame, but we don't know which one(s) it is. So Tyler has to hedge his bets.
We could end up with a deflationary bank collapse followed by hyperinflation as governments go apeshit in trying to print their way out. There are numerous other possibilities.
Faber's gold is probably in an allocated depository in SUI and I feel bad for him. I don't think government will go door to door in US, not cost effective, but these are interesting times.
Feds more likely to simply electronically assess whether they think someone is hoarding anything of value and dispossess you until/unless you prove otherwise, eg., block your passport, seize other property, eat your children. CIA, FBI, NSA, IRS, CFPB, and DHS are now all on the case.
If SHTF completely seems likely to have pockets of local LEO going rogue and exact bribes, pilfer and loot, like (cough, Chicago) Venezuela.
Damn, really is time to get on Food Stamps and Welfare and get a phone and anything else possible to collapse this corrupt bank/government clusterfuck of an insane society.
I agree; were I female I'd freebase a cocktail of fertility drugs and have as many kids as possible at once; they'd call me dodecamom.
True to form, the Self-Absorbed do not have the wherewithal to stop, and evidence of perhaps their most pathetic trait comes toward the end of the game -- where they flail around aimlessly wondering what could have happened to threaten their personal delusion...
they are so involved with losing their delusion that they do not see, smell, or even fear the flames that are illuminating them and threatening them.
Only the intelligent criminal is aware, and hides before it all implodes.
That the good and intelligent Mr. Faber gets to speak his mind is evidence of chaos-in-control...
negative forces -- those inhibiting anything remotely positive toward solution (soft landing) -- are finally wound-up and made-up of nothing but self-serving imbeciles... and Criminals, too.
"solution (soft landing)"
OK Cabreado, what's your solution? Imbeciles, indeed..
Eloquence (especially the half assed variety) without intelligence is useless.
I touched a nerve, eh?
I promise you -- that's a good thing.
Meanwhile back in China.......
Fuck a bank!
Meanwhile back at the oasis the Arabs were eating their dates.
But what Faber failed to mention is that Gold is the only thing with value. It may go down but, it will never be equal to a dollar worth 0 or stocks of bankrupt companies. Buy food, have energy and Guns along with Gold and you will survive.
If capital gains tax rates had been much higher on the uber wealthy we wouldn't have seen such a large accumulation of wealth over the decades. As I've mentioned before here, the Fed should've just skipped QE and just wrote the assholes checks, makes about as much sense.
taxes will fix it
I'm guessing there is a knock-down, drag-out fight going on behind the scenes between the likes of Bernanke plus Jamie Dimon (who champion inflation and having the innocent pay for the sins of the guilty) and Jeroen Dijsselbloem (who believes those with skin in the game, rather than taxpayers, should pay if things go bad).
Incidentally, there are two quite separate things at play here. Hitting uninsured depositors is not a "wealth tax", it is capitalism. Hitting wealth to pay for sovereign deficits would be a wealth tax. Very different in terms of "fairness". We've seen one in the past week. The other one is possible, but hasn't yet arrived (except in stealth form via QE).
So it comes down to this regarding bank blow ups, as there are two, and only two choices:
1) ALL creditors take the hits in reverse order of their seniority until the holes are filled
2) TARP and QE
One would think that on Zerohedge of all places this is an easy vote, but the last week regarding Cyprus has shown otherwise. Confusion and emotionalism, I suspect. I will add, there seems to be a view that banking is inherently bad. Personally, I rather like a system where those with capital can pool it, and those with ideas but no capital might have access to the means required to produce. The alternative is a world where only those born into wealth and opportunity can have wealth and opportunity, and good ideas in the head of a poor man go to the grave. Finally, loading up on CDX IG9 is not banking, nor is being indifferent to risk because one is going to package assets and dump them on Baverian Landesbanks after brow beating a Ratings Agency. George Bailey was a banker. Jamie Dimon is a charlatan.
"George Bailey was a banker. Jamie Dimon is a charlatan."
Said with regret, where I think you go critically wrong is the part where Bailey was a movie, and Dimon is real.
We're quite unable to reconcile the difference.
I was time constrained to find a real life example who is widely known. I haven't heard a bell ring for a long time, except the one that tolls for thee.
Agree...
The role of the real banker is (was) to help communities thrive.
Dear Marc,
I am sure the governments have already taken away much more than 30% of my wealth. They will, no doubt, take even more.
VTY,
FS
I have no doubt that Private Banking customers will be exempt from any confiscation.
It is now time to set your mind clear and take care of business. The reverberations from ZH and Marc Farber and other are like a bad noise - incessant and relentless: Get the hell out of electronic assets. Liquidate; pay your taxes; and convert - either to gold or stacks of 100 Dollar bills or tankers of gasoline or whatever. The ammo I bought in quantity and quality one year ago can not be purchased today. Yes, you can get pitiful small qualities of ammo at more than double the price. Message: If the powers that be do not want you to have something, they will make it difficult or impossible to get it. Yes, guns are legally available in quantity. But, what good are they without ammo. Controls, limitations and restrictions are coming. By stealth or by regulation. This is not a time to panic. This is the time to stop mental masturbation and take care of business.
"This is the time to stop mental masturbation and take care of business."
If "taking care of business" means fortifying the bunker, preserving one's self in a hole,
I suggest that you wonder for a moment if you're playing a part in the madness, in a self-fulfilling way.
"Controls, limitations and restrictions are coming."
That part.
You had me, except 100 bills. I know it's 5x bulky, but you gotta go $20s.
The $100 bill is the most counterfeited bill on the planet. For the same reason you should own proofed US coins and not bars nor Krugerrands, you should keep smaller bills: because the person you might need to trade with could be a paranoid moron, and what he has you might need to survive. Best to keep it as simple as possible. Make it easy for a moron to validate your medium of exchange.
People should learn how to make homebrew. When we are all in the FEMA camp, people who play music and know how to make beer won't have to toss any salad.
In what future will having tons of ammo do you any good? If the government eventually goes full-Nazi, each of us has already lost. This "molon labe" meme is bullshit. The government is better equipped - surveillance, character profiling, guns/ammo, drones, etc, and most soldiers will follow orders and shoot whoever they are told is the bad guy. The only way to escape such a regime is to leave the country.
I see only one scenario that individuals can adequately prepare for - scarcity. In that case, gas, food, solar panels, fresh water, and some guns/ammo might make sense. My point being you're not trying to hold off an army, just local thieves. So why are you stacking guns/ammo again? To trade?
A final thought - I doubt gold will help anyone during hard times. It is only there to preserve wealth until things normalize, at which point another fiat currency will be implemented and you can exchange gold for other assets.
Guns are wonderful. My preference is knives, crossbows, slingshots, arrows. Silent. Don't attract attention of authorities.
Just sayin'
They'll destroy the middle class utterly for the same reason Stalin did. But keep some tame ones for bureaucrats. The envious poor will cheer it. Then they will be modern industrial serfs whose lifestyle is being perfected in the PRC.
if there is a reset, who are the brains we are going to trust to do it? Now perhaps the time has come to start thinking of 50 or so people world wide to actually plan a reset. Absolutely zero zilch of any politician, economists , bankers that are todays PTB shall have any input what so ever. 50 names ...anyone got nominations? Lock them in the vatican until they send up some white smoke. we can then decide if we think its doable , or keep them in there until its doable.
much of his wealth is dominated in counterfeit currency created out of nothing both by governments and by private sector, shielded by governments from consequences of their actions. Why should anyone be surprised, or scandalized, that the only solution to this problem is ultimately expropriation?
*News Flash*
Headline I saw on Larry Kudlow - Cypriots leaving the island cannot take more than 3,000 Euros out per trip.
ROFLMAO!
Oh...everything is fine in Europe and with the Euro!
Your money just isn't yours!
And you have no vote!
SERFDOM!
They steal more than that annually now.
I am a fan of Marc Faber! He is fun, to the point, easy to understand in spite of his accent... Even my wife loves him. But he is long term.
Marc, we know that in the long term we're all dead, it's in the heading of ZH. What is of concern is in-between.
Just found that on page 144 and 145 of the new Canadian 2013 budget
http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf
Has provisions in it as follows:
The Government proposes to implement a ?bail-in? regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.
Nice catch, thanks.
Marc Faber is always a breath of fresh air
So much "Gold isn't going to help you" talk.
WOW!
Folks I thought were strong hands crumbling left and right.
WOW!
Take a deep breath.
Globally, the balance sheets can't balance. You know that. Things unwind, stop, unwind some more. They hope to God it does not all unwind at once. They are printing, propping, lying, and stealing trying to put the brakes on this whole story unwinding and the truth coming out. This thing is starting to fall apart much more visibly now. The computer/electronic age is making things possible that will have never been experienced in history before. We won't be able to see some of this coming. The failure will be experienced differently in every location. Hedge for where you are given the assets you have. It is all we can do.
Except for the tragic mountain climbing accident where I lost all my PMs, I'd hold PMs. I'll hold other things too.
I have to buy my own safe now
Marc ! .... Have you ever considered .... senior citizen adoption .... I'm still 67 .... and very dependent .... when you adopt a senior .... no parental consent is required .... fast track adoption .... call me ? Monedas
The Pan-STARRS comet is headed away. But not too far behind is Comet ISON, rumored to be at it's best on Dec 24/25, 2013I posted the following on facebook to see if there was any reaction, comments, etc. Nope, not so far. =========================
It should be pretty cool.
However, Comets have always been considered harbingers of disaster.
This year, with the recent heist in Cyprus, we now have the template legitimizing the direct seizure of our bank accounts, a la MF Global and Peregrine Falcon.
We have incessant war drums beating from the joint owners of our media and government in Iran and North Korea.
We have the escalating Gestapo in the Department of Homeland Security (we must protect the Father Land!); the militant, brutal, thuggish tactics of Police (To Protect <the banks> And Serve <your ass on a platter>); and a government so thoroughly bought and sold out that the Department of [in]Justice readily admits that it cannot prosecute the perpetrators of the Greatest Fraud in History.
We have the DHS purchasing enough Nuremburg illegal hollow point ammunition, that can only be used HERE, to put six bullets in every currently living American citizen. At the same time the DHS has maneuvered thousands of armored battle vehicles into position across the country.
The National Security Administration (NSA) has an operational center in Utah that now will monitor all means of internal communication--telephone, cell phone, internet and, most recently, every aspect of your finances...right down to your bank account.
We have a government that plans to deploy more domestic drones than Terminator's SkyNet. And we have a new youth corps, under FEMA, that eerily mirrors history-including the cult of personality. These same youth cut their teeth on video games and mastered first person shooters by the age of three. They were educated at government dictated propaganda centers, teaching submission to authority, and graduated, with honors, with substandard educations and job skills. These same youth will be the ones sitting behind video screens piloting those drones.
We have no need to work in factories, mills, or manufactures and produce anything tangible; we only need to concentrate on service jobs...serving each other burgers and tacos, and the elite in whatever they demand. And if we're unfortunate enough to not find employment we have never ending unemployment benefits that evolve into permanent disability...all complimented with stealthy food stamps and 'health insurance' (because there should be no shame in living off your neighbor).
Our money is on the threshold of world-wide rejection and we sold our grandchildren into Chinese slavery. We are a nation of bankrupt people, bankrupt banks, and a fiscally and morally bankrupt government--all pretending that everything is perfectly fine. We just need Hope and, apparently, a handful of change. All we need is more paper money instead of real, productive assets. And, boy howdy, has the Federal Reserve produced the paper money...$16 trillion alone went to foreign banks since 2008...and none of it authorized by the Treasury.
By December, when we see Comet ISON overhead, we may be reviving that harbinger meme so it can continue for the next thousand years.
http://waitingforison.wordpress.com/comet-ison-whats-the-big-deal/
The Mayan calendar pointed to 2013; not 2012, because the dummies who calculated the end of the age didn't realize there is no year "0 A.D." It goes like this 4 B.C., 3 B.C., 2 B.C., 1 B.C., 1 A.D., 2 A.D., 3 A.D...., not; 3 B.C., 2 B.C., 1 B.C. 0, 1 A.D., 2 A.D.,...
Planetary.
"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.."
It's very interesting that Mr Faber himself makes the distinction between the taxpayers and those who own everything. Why should the rich be left out of whatever is coming? And at 70%, it's not like Marc is going to have any real problems.
You are most clearly an unprincipled fool and more than likely an Obama voter.
Banksters fighting banksters at the top. Banksters fighting poor people at the bottom. Banksters attacking those climbing the ladder. Banksters stealing the money from the ones at the upper rungs. Banksters influencing governments. Fucking Banksters everywhere.
Got banksters having the military kill Arabs with drones in the mid-east. Got banksters building the DHS against the citizens in the US. Got banksters building Homeland Security in Iraq. Got banksters buying the DHS tanks, machine guns, and arming the police. Got drones going up all over America everywhere.
Got banksters coordinating in the CFR, Got banksters inviting future presidents to the Bilderberg, the Bohemian Grove, the Trialateral commission and Davos. Got banksters funding politicians around the world. Got banksters in control of the Federal Reserve. Got banksters everywhere.
Banksters are manipulating the gold markets, the silver and copper markets, the FX, derivitives and stock markets. Banksters telling Holder they are too important to prosecute.
Got banksters about to destroy all life on the planet. All the people of the world people everywhere have a common enemy. We have a banksster problem not an economic problem Get rid of the F'n banksters. Get rid of them everywhere.
You could take your post and put it to rap music and call the song "Kill Da Banksters!"
What's the latest on the peace prize winning Obama nuking N. Korea and Iran? Think that is of any relevance to a stable socio-economic monetary system? Well by the sounds of the other evil deeds of the banksters I guess not.
Latest news is that the PNAC puppet Obomber is working towards pre-emptive nuclear war, e.g. against Iran ... probably because the USD "stable socio-economic monetary system" was NEVER really stable and is now collapsing ... despite having assassinated Saddam Hussein and Muamar Qadafi for having tried to trade oil with other currencies.
The Washington Empire cannot persist without the USD remaining the global reserve currency ... a condition enforced since about 1971 with the refusal to back the USD with gold, but rather to strike a deal with the Saudis to protect that oppressive regime, in exchange for a guarantee of pricing oil in USD ... flowing on to world trade generally ... thus USD hegemon, backed by military hegemon/global Empire, as per the wars currently being waged and planned, with Obomber bin Sold as the mouth-piece for the real psychopaths who plunge us towards devastating wars.
And all current wars are based in the false flag of 911, so I'll get in a plug for A & E for Truth, because we (I am a member) have been trying to undermine pretexts for wars for over a decade.
Go to: http://www.youtube.com/watch?v=lt8asRqJBSs and start exploring from there.
I have handed out a number of copies of the DVD "9/11 Blueprint for Truth" and not one person has done anything other than say that their minds have been changed by seeing irrefutable evidence that 9/11 was nothing like the government version of it.
The importance of this is that when enough people realize that they have been duped about the pretext for wars and financial crises (resulting from those wars), maybe the sooner that the psychopaths running the world might be disempowered.
Not sure if I can make a long post, but I came upon this relevant article:
Russian Leader Warns, “Get All Money Out Of Western Banks Now!” March 22, 2013 | Filed under: Asia,Economics | Posted by: JGVibes 26By Sorcha Faal
What Does It Mean?
March 22, 2013
A Ministry of Foreign Affairs (MFA) “urgent bulletin” being sent to Embassies around the world today is advising both Russian citizens and companies to begin divesting their assets from Western banking and financial institutions “immediately” as Kremlin fears grow that both the European Union and United States are preparing for the largest theft of private wealth in modern history.
According to this “urgent bulletin,” this warning is being made at the behest of Prime Minister Medvedev who earlier today warned against the Western banking systems actions against EU Member Cyprus by stating:
“All possible mistakes that could be made have been made by them, the measure that was proposed is of a confiscation nature, and unprecedented in its character. I can’t compare it with anything but … decisions made by Soviet authorities … when they didn’t think much about the savings of their population. But we are living in the 21st century, under market economic conditions. Everybody has been insisting that ownership rights should be respected.”
Medvedev’s statements echo those of President Putin who, likewise, warned about the EU’s unprecedented private asset grab in Cyprus calling it “unjust, unprofessional, and dangerous.”
In our 17 March report “Europe Recoils In Shock After Bankster Raid, US Warned Is Next” we noted how Russian entities have €23-31 billion ($30-$40) in cross-border loans to Cypriot companies tied to Moscow, and €9 billion ($12 billion) on deposit with Cypriot banks [as compared to the €127 billion ($166 billion) being kept in similar circumstances by 60 of the United States largest corporations in offshore accounts to avoid paying American taxes] which are in danger of being confiscated by EU banksters.
Unbowed by the misery they have inflicted upon the entire continent, however, and in spite of Russian warnings, European Union officials hardened their stance against Cyprus today by announcing that if the Cypriot government did not allow the raiding of private bank accounts by Monday they would be forced to destroy their banks, which remain closed for the seventh straight day and have no signs of opening soon.
In an editorial agreeing with Russian leaders anger against the EU over Cyprus, Canada’s Globe and Mail News Service further writes:
“The parliament of Cyprus was right this week to reject a proposal to confiscate money from modest-sized bank deposits. The idea was a reductio ad absurdum of the euro zone’s policy on the sovereign debt of some of its member-countries.
It would be better for the government of Cyprus to default outright on some of its obligations rather than to seize part of the savings of the proverbial widows and orphans, as well as retirees or those approaching retirement – while purporting to levy a tax. This is especially true in a country that has deposit insurance for up to €100,000, in order to protect small savers.
Until a few years ago, Cyprus – which is really the ethnically Greek section of Cyprus, the Turkish section being a de facto protectorate of Turkey – had a fiscal surplus, but its close relationship to Greece resulted in a downturn when Greece fell into a severe recession. The government’s debt in itself is still manageable, but Cypriot banks have become shaky because of their loans to Greece.”
In the face of massive popular outrage, however, Cypriot MPs spectacularly voted earlier this week against the EU plan to steal their bank depositors money, thus leaving the Euro Zone reeling, a situation that was, in fact, created by European banksters who had forced Cyprus banks to lend money to nearly bankrupt Greece in the first place.
Even worse may be what is in store for the Americans, who on 31 January lost an unlimited US government guarantee that was granted on over $1.5 trillion of their bank deposits during the 2008 financial crisis to assure skittish customers that their cash was safe.
According to Kremlin sources, though, President Obama’s sudden visit to Israel this week, the first he has made since being elected in 2008, was to personally warn top Israelis of his regimes “plan” to begin confiscating his citizen’s bank deposits too.
Interesting to note is that the Obama regimes “master plan” to steal their citizen’s wealth that is no longer protected was detailed by the global management consulting giant, and the world’s leading advisor on business strategy, The Boston Consulting Group (BCG) who in their 2011 September report titled Collateral Damage: Back to Mesopotamia? The Threat of Debt Restructuring warned of the US governments plan confiscate up to 30% of not just the Americans people bank accounts, but also of their other wealth.
The highly respected Zero Hedge financial newsletter in commenting on this dire BCG report grimly stated:
“Denial. Denial is safe. Comforting. Religiously and relentlessly abused by politicians who don’t want nor can face reality. A word synonymous with “muddle through.” Ah yes, that “muddle through” which so many C-grade economists and pundits believe is the long-term status quo for the US and the world just because it worked for Japan for the past three decades, or, said otherwise, “just because.”
Well, too bad. As the following absolutely must read report, which comes not from some trader of dubious credibility interviewed by BBC, nor even from an impassioned executive from a doomed Italian bank, but from consultancy powerhouse Boston Consulting Group confirms, the “muddle through” is dead. And now it is time to face the facts.
What facts? The facts which state that between household, corporate and government debt, the developed world has $20 trillion in debt over and above the sustainable threshold by the definition of “stable” debt to GDP of 180%.
The facts according to which 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 facts which state that 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.
But not before the biggest episode of “transitory” pain, misery and suffering in the history of mankind. Good luck, politicians and holders of financial assets, you will need it because after Denial comes Anger, and only long after does Acceptance finally arrive.”
To the evidence that the masses of Americans or Europeans average citizens will begin protecting themselves against this apocalyptic outcome their remains little evidence as their so-called “mainstream” media continues to cover-up this coming catastrophe. But, and as Russia has now warned, the time for protecting oneself is fast running out, and the only survivors will be those who listened.
...and it should do so. capital accumulation in the capitalistic system has to be overcome by taxation.
Doctor Doom's bullish ? JUMP EVERYONE !
Canada is planning its own Cyprus style bailout plan for its too-big-to-fail banks. Banks deposits are the target Good planning eh? http://tinyurl.com/cvcf9v9
Just like in Cyprus, the US government (Federal Deposit Insurance Corporation FDIC) is already planning on how to take money out of your savings account in the next financial crisis. The FDIC and the Bank of England have written a joint paper explaining how savings deposits which are said to be guaranteed for the depositor will instead be used to bail out failing banks. Hard to believe.
See an explanation and the joint FCIS-Bankf of England paper which proposes this at: http://tiny.cc/z4jcuw
there seems to be focus on govt. taxing but it is the banks that ultimately have the financial control via the govt. plus interest. Capital controls were introduced in Cyprus at the mercy of the banking system not a govt. initiative.
just read that Cyprus' central bank president's name is : PANICOS DEMETRIADES !!!!! RUN EVERYONE !
OK. So they "take" 30% of wealth to "fix" the system. Who "fixes" the system? Them? What does the "fixed" system look like? The system of the last 40 years?
Fuck that.
I see no claim that a 30% wealth tax would actually "fix the system".
The "system" is well and truly broken. A 30% theft would simply be yet another attempt to paper over the cracks.
I see no claim that a 30% wealth tax would actually "fix the system".
That's right. And establishment figures would claim that the system is not really broken. So why surrender any wealth at all?
Yes, absolutely and the quicker the better; those who live by financial callowness, greed and insenstivity, should die by it.
As per the previous meme : those who live by the sword die by the sword. So be its for fiat smart ass predators.
A guy who grows with the finaniclal oligarchy manipulated cancer in society should be subjected to the same remedial therapy; Faber is more optimistic today about his impending haircut : I remember distinctly in 2011/2012 he was dooming and glooming about 50% loss of wealth.
And, this debate about the terminology "haircut", it says it sweetly about repayment of "financial conquistador theft" , by the same line of reasoning that prioritises general good over personal hubris and machiavellian ambitions.
When you are Bloody Morgan of finance you walk the plank one day.
The fact that the Queen or King, who commandeered and commissioned the Bloody Morgans, doesn't walk that plank as well remains one of those recurrent anomalies of history called "sheeple protecting their 'divine rights' species", like suffering congenitally from Stockholm syndrome; go figure!
Jefferson would have been consistently disgusted with it like Danton; not so sure about Lafayette, Washington and Voltaire, who all loved kingly patronage at one time in their lives, even though they were staunch republicans!
We are all in love with Venus and we all hate her divine cruelty...that's Stockholm syndrome for you on the sexual plane!
Man is contradiction and that's why he slogs it out each day like Sisyphus.
Jesus, what a hill that is in front of me. A blank page awaits me!
Deep, but I get your drift and + you with reservations, as I will state. Meanwhile:
I especially liked, "We are all in love with Venus and we all hate her divine cruelty...that's Stockholm syndrome for you on the sexual plane!"
Is that your original observation, or a quote?
Either way it is profound, as also "Bloody Morgan", but I doubt that many will pick up on that, nor your references to others who have enjoyed "kingly patronage".
And how many know of Sisyphus?
I end up not knowing if you are just trying to impress with your obscure/arcane knowledge, or actually tring to share deep insights?
your answer is embedded in the question : message before messenger!
Your curiosity is your talisman; arcane or circular, life is one chariot wheel.
Curious: Cyprus limits ATM withdrawls to roughly 400 bucks...same as account here in the US...what a coinkydink
They will take away 100%. Why? Because they can. Because they control a monopoly of violence and their tax slaves believe rule by a heavily armed violent elite to be necessary for an orderly society.
I'm tryin' to find a hole in your logic.
Nope, can't find any.
Thanks for the thought.
Tax the corporations and the rich. So I lose my crappy $20/hr job with no benefits as an experienced engineer in one of the most expensive cost of living states. wtf do I care. I'd be better off on SSDI and medicaid.
Tom Keene = old queen.
I like Tom Keene, mostly. He's better than any dickhead on CNBC.
I’m sure too, since they’re already doing it everywhere. In Cyprus it’s blunt and obvious. In one tragic but relatively painless moment, it’s over. Elsewhere, such as the U.S., ZIRP, taxes, funny money printing, bank subsidies, fees, rigged markets, and other more steady techniques are used. It’s more like having your skin removed one square inch at a time.
"I am sure the governments will one day take away 20-30% of my wealth."
If you own gold and silver (a.k.a. real money), and they inflate away the dollar, the 28% tax is already baked into the cake.
Stealing so-called "wealth" (an intended palliative if ever I've heard one) from deposit holders is the next logical step for criminal governments.
They've already loaded up the next 3+ generations of taxpayers with unrepayable debt and in the process stolen future growth from the economy, as all taxation is. They seem to have ignored this consequence of their action.
But apparently this is not enough, so savers are next. They're the only people with any money left. Those in the US & UK who believe that this theft will be limited to inflation are being naive IMHO. Direct plundering is yet to come.
I am at a loss to know where the tipping point is. When will prominent political elites/banksters be found swinging from lamp posts? When will prominent public buildings disappear in a cloud of dust? When will ... ... ...
Wait, what did Marc say... 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.
Holy fucking almighty god damn cow crap... you mean the money doesn't trickle down? I can't fucking believe what i'm hearing... i've been misled, duped i say. All this god damn time, i've been promised a tinkle... i mean trickle... and it hasn't appeared... i was all set to wait for eternity on that promise. I'll give up now. [ I know money doesn't always trickle down, except we were told it would in this case.]
While i'm here... people, you have to look yourselves in the mirror every once in a while and ask yourself, are you as misguided about your rights to demand the economy operate in a particular way as were the long shoremen of LA who were en masse replaced by automation. There is no point in clinging to history as if it ensures the future... evolve, revolutionize. The industrial revolution changed much, and the technological advancements of the past century changed even more... we are on a trajectory most people refuse... you risk being disenfranchised the same as the long shoremen. Look forward.
https://www.youtube.com/watch?v=YRYtcpxHy1s ... i leave you with this to provoke a little thought.
Eventually, Marc will lose 100% of his money and be thrown in jail for opening his big mouth. Just sayin'. Nowhere to hide in the global village nwo gulag.
>>So if you have money -- like I am concerned -- I am sure the governments will one day take away 20-30% of my wealth." <<
Not only that, but big brother gov't will have also millions of shirtless, starving waifs storming your gates and sacking your house, secure in the belief that the evil bourgeois that have done nothing more offensive than work for a living and pay taxes everyday of their life are responsible for all grief and misery in the world.