Marc Faber Blasts "We Are The Bubble... There Is No Exit Strategy"

Tyler Durden's picture




 

"The question is not 'tapering'," Marc Faber exclaims to his hosts on CNBC's Squawk Box this morning, "the question is at what point will they increase the asset purchases to say $150 [billion] , $200 [billion], or a trillion dollars a month." QE-4-EVA is here to stay, as Faber explained "every government program that is introduced under urgency and as a temporary measure is always permanent." Simply put, "The Fed has boxed itself into a position where there is no exit strategy," and while inflation may not be present in the 'chosen' indicators, Faber blasts, there's been incredible asset inflation - "we are the bubble. We have a colossal asset bubble in the world [and] a leverage or a debt bubble." There will be massive wealth destruction, he concludes, "one day this asset inflation will lead to a deflationary collapse one way or the other. We don't know yet what will cause it."

 

The Fed is Boxed In....

 

The world is in a gigantic bubble...

 

Back in April 2012, Faber said the world will face "massive wealth destruction" in which "well to-do people will lose up to 50 percent of their total wealth."

In today's "Squawk" appearance, he said that could still happen but possibly from higher levels because of the "asset bubble" caused by the Fed.

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Mon, 10/21/2013 - 16:48 | 4077203 Joebloinvestor
Joebloinvestor's picture

The US has a habit of pulling a rabbit out of the hat, and I suspect that when push comes to shove, the US will issue a new type of currency backed by PM's, as they will have to.

Just as quickly, they will figure out a way to fractionalize it.

Mon, 10/21/2013 - 16:49 | 4077208 Hooter Shaker
Hooter Shaker's picture

You will not like the exchange rate.

Mon, 10/21/2013 - 17:25 | 4077299 ZerOhead
ZerOhead's picture

 

"We have made all necessary preparations, and we are confident that we have the tools to unwind these policies at the appropriate time."

B.S. Bernanke November 2010

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/03/AR201011...

 

Mon, 10/21/2013 - 17:26 | 4077316 Chupacabra-322
Chupacabra-322's picture

What was once Criminal is now out in the open & legal. It doesn't hurt to have the masses desensitized to Criminal business practices like murder, espionage & drug trade as normal. Throw in the Criminal Politcians, Agencies & Justice System & you have a recipe for a AuthoritarianTotalitarian Fascist Police State Tyranny.

Which is exactly what we have today.

Mon, 10/21/2013 - 17:35 | 4077343 Pure Evil
Pure Evil's picture

Oh my gawd.....is there a song in there somewhere?

We are the bubble.....we are the debt slaves

(sung to the tune of We are the World)

Mon, 10/21/2013 - 17:47 | 4077383 eclectic syncretist
eclectic syncretist's picture

A deflationalry collapse in the percieved (meaning real) value of fiat currency and those who proffer it.

Mon, 10/21/2013 - 19:15 | 4077614 Herd Redirectio...
Herd Redirection Committee's picture

Yep, death of a currency.

Mon, 10/21/2013 - 22:11 | 4078088 TruthInSunshine
TruthInSunshine's picture

When (not if) equity markets crash, it's game over. The insiders will have already cashed out and converted their fiat gains into hard, real, truly valuable assets.

Ben Bernanke has now blown the third, and BY FAR the largest (and multi asset class) bubble since 1998.

There will future economic textbooks & studies dedicated to the complete failure that is Ben Bernanke's 'Virtuous Circle' monetary policy lunacy.

http://www.zerohedge.com/news/2013-06-20/guest-post-wealth-effect-shifts...

Mon, 10/21/2013 - 22:58 | 4078284 markmotive
markmotive's picture

Jim Grant thinks we're headed to a gold standard. That crazy guy.

http://www.planbeconomics.com/2013/10/jim-grant-gold-standard-is-obvious...

Tue, 10/22/2013 - 02:11 | 4078558 gbresnahan
gbresnahan's picture

this is what i think as well.. we'll eventually collapse, then "sound money" will return, then the entire cycle will start anew.

(create new/sound currency, inflate it a little bit, little more, little more, etc, collapse, repeat)

Tue, 10/22/2013 - 04:05 | 4078620 Squid-puppets a...
Squid-puppets a-go-go's picture

and importantly, the degree to which they fractionalize or attempt to fractionalize the new gold backed currency will = the degree to which it fails to fully restore faith in the currency.

Remember that: when you are dealing with faith and confidence, having been thoroughly lost, you cannot use chicanery or opaquery to get it back. And this time there will be a world of observers to call them out on any bullshyt

Mon, 10/21/2013 - 23:15 | 4078326 Abi Normal
Abi Normal's picture

Pity, the avg SUCKER will be standing there with a lump of coal in his hand, then he will figure out he has nothing to lose and lose it.  This will end in a trail of tears my friends, just prepare accordingly...mentally, physically and spiritually (whatever you worship, even if it is your toaster or nothing) GET THE HELL READY, time is running short, tick tock tick tock tick tock.

May the farce be with you!

Mon, 10/21/2013 - 20:17 | 4077771 MsCreant
MsCreant's picture

We are the ones who will have to pay 
so lets start giving... 

There's a choice we're making 

We're saving bankers' hides
Its true we had better pay 
Just you and me...

Sing it!

Mon, 10/21/2013 - 21:31 | 4078003 Croesus
Croesus's picture

@ MsCreant: 

"I buy the Gold...I buy the Silver...

They're the choice for a brighter day...the precious metals..

There's a choice your making...for your financial lives..."

 

( I actually have the video playing on Youtube...and I remember how much I couldn't stand it, when it came out...they played it EVERYWHERE)...

 

Mon, 10/21/2013 - 22:25 | 4078195 Element
Element's picture

</Bob Dylan voice>

Mon, 10/21/2013 - 22:56 | 4078280 lasvegaspersona
lasvegaspersona's picture

element

make fun of Bob all you want...let's hear you sing Tangled Up In Blue...

Mon, 10/21/2013 - 23:03 | 4078294 Element
Element's picture

You've assumed way too much. -1

Tue, 10/22/2013 - 07:10 | 4078741 ToNYC
ToNYC's picture

"...the only thing I knew how to do was to keep on hanging on, like a bird that flew...we just started from another point of view, tangled up in blue."

Mon, 10/21/2013 - 17:39 | 4077359 ZerOhead
ZerOhead's picture

When the time comes that they stop bothering to assess fines to deter criminal activity the system will have officially "Jumped the Shark".

I'm thinking next month...

Mon, 10/21/2013 - 18:13 | 4077447 silverserfer
silverserfer's picture

or the FED loans them the money at 0% to pay the "fines." Just a show to playcate the masses 

Mon, 10/21/2013 - 18:18 | 4077466 hangemhigh77
hangemhigh77's picture

It already has. Where do you think the 13 billion JPM fine went? The banks. The banks run the government.  JPM just moved 13 bil from one side of the ledger sheet to the other.  ALL taxes go to the banks. So WHO are the banks paying their fines to?  Themselves. It's all a hoax.

Mon, 10/21/2013 - 18:33 | 4077508 Seize Mars
Seize Mars's picture

Hangemhigh
Right on, man. Go ahead and try and explain that to some mouth-breather walking down the street - blank stares ensue.

Mon, 10/21/2013 - 20:32 | 4077815 Serfs_Up
Serfs_Up's picture

LMAO "Mouth-Breather"  Lots and Lots of those around!!

Mon, 10/21/2013 - 21:18 | 4077972 disabledvet
disabledvet's picture

"Jamie Dimon is Custer and we're all the Indians....only this time the Indians lose." There is a probabilistic certainty that i'm still trying to come to grips with. Hence..."back to school for the DV." It is uniquely...American...however.

Mon, 10/21/2013 - 21:34 | 4078021 Jendrzejczyk
Jendrzejczyk's picture

Hey, my nostrils are unusually small. Okay?

Mon, 10/21/2013 - 23:33 | 4078364 Abi Normal
Abi Normal's picture

need more oxygen...

fuck 13 billion, what ever happened to the 2.3 trillion rummy lost?

Mon, 10/21/2013 - 19:36 | 4077667 Race Car Driver
Race Car Driver's picture

"We traced the call! It's coming from inside the house! Do you hear me? It's coming from inside the house!"

Tue, 10/22/2013 - 06:50 | 4078725 RabbitChow
RabbitChow's picture

The news media broke it down as $4 billion will go to the 'homeowners' and $9 billion will go to fines and fees to the gummint.  In reality though the money will all go to the gummint.  There may be some holding fund for anyone who was injured by selling the MBS can file a claim to.  I just don't see that happening though.

Mon, 10/21/2013 - 18:48 | 4077548 Keyser
Keyser's picture

I would say that we have jumped the shark some time ago. The DOJ have already suspended prosecution of certain crimes. Holder doesn't think the emmigration laws in the US are worth enforcing, so border patrol doesn't. Same situation with marijuana cases. 

 

Mon, 10/21/2013 - 19:29 | 4077649 booboo
booboo's picture

Uh, well as you define it the system jumped the shark in the late 1800's.

Mon, 10/21/2013 - 20:20 | 4077792 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"...system jumped the shark in the late 1800's."

More like 1913!

Mon, 10/21/2013 - 23:48 | 4078390 Anusocracy
Anusocracy's picture

Glorious will be the day when people pay their property taxes with home equity loans.

Mon, 10/21/2013 - 18:44 | 4077542 MiltonFriedmans...
MiltonFriedmansNightmare's picture

Need moar tyranny!!! The masses will beg for it, in fact they already have.

Mon, 10/21/2013 - 18:50 | 4077549 max2205
max2205's picture

Seen sin city?.....this is exactly what's going on

Mon, 10/21/2013 - 20:20 | 4077770 BLOTTO
BLOTTO's picture

The 'can keeps getting kicked' until they queue in either a world altering

man made 'natural' disaster or

man made disease or

false flag war...

then the faked alien invasion will end the can kicking as they are here to 'save us.'

 

 

Mon, 10/21/2013 - 20:32 | 4077812 ZH Snob
ZH Snob's picture

Hey, dude, this is what the douchebags refer to as the new normal.

Mon, 10/21/2013 - 20:33 | 4077813 ZH Snob
ZH Snob's picture

Get with the program!

Mon, 10/21/2013 - 21:52 | 4078080 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

god damn these central bankers really nailed this plan huh? i mean come on give them some credit. control the media, hollywood, currency, lawmakers, the law in general. constantly expand the size and scope of your control and tyranny. a+ for execution. and we're naive enough to think we can stop this. it's going to crash, the question is will americans react in a way that brings us back towards a sane, limited, constitutional republic which is rooted in the law and the idea of freedom and equality, or are we destined for chaos, ruin, despotism, and misery? history speaks volumes to the answer to that question. not looking good.

Mon, 10/21/2013 - 23:56 | 4078403 Anusocracy
Anusocracy's picture

Control is a very powerful survival strategy - and it certainly doesn't hurt to have the controlled be so willing.

Thank you worthless asshole voters, you are totally clueless.

Mon, 10/21/2013 - 21:54 | 4078082 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

.

Mon, 10/21/2013 - 20:04 | 4077738 steelhead23
steelhead23's picture

"We have made all necessary preparations, and we are confident that we have the tools to unwind these policies at the appropriate time."

Yes, the global banking cartel has indeed made all necessary preparations.  Remember those old fire alarms that said "In case of fire, break glass"?  My guess is that those preparations (isolated locations to which the elite can escape?) will be implemented just as soon as hell freezes over.

In 1972 I purchased my first new car - for $1,450.  Sunday, my wife test drove a new commuter car - much nicer than my old Austin, for about $30,000.  Thus, the vaunted Federal Reserve has so wonderfully protected the purchasing power of Bucky that I now need 20 of them to buy what a single would 40 years ago - a 7.7% annual rate of devaluation.  God Bless the Federal Reserve.  

Mon, 10/21/2013 - 21:26 | 4077991 disabledvet
disabledvet's picture

don't forget to check the barrels before you pull the trigger however. http://www.youtube.com/watch?v=AWRZut6klgE

Mon, 10/21/2013 - 17:34 | 4077348 Mike in GA
Mike in GA's picture

If 40% of the federal budget is borrowed, what does that tell us about how far the deflationary pulse goes when it hits?   If 40% of gov't expenditures cannot be funded, that's people directly employed as well as contracts in the quasi-private economy and .mil contracts and people.  Big.  Really big.  Long dry powder and pms. 

Tue, 10/22/2013 - 00:01 | 4078415 Anusocracy
Anusocracy's picture

It won't be pretty for the 'real' economy if the sham economy goes away.

Mon, 10/21/2013 - 18:26 | 4077479 Obadiah
Obadiah's picture

dupe

Mon, 10/21/2013 - 18:53 | 4077558 Nothing but the...
Nothing but the truth.'s picture

And you will also not like the fact they conficated all private gold holdings, as part of that excercise.

Mon, 10/21/2013 - 16:53 | 4077225 slaughterer
slaughterer's picture

Another all time high.  ZH response: pull out another Faber doom interview.  

Mon, 10/21/2013 - 17:03 | 4077260 Mordenkainen
Mordenkainen's picture

Another all time nominal high. How about in terms of real wealth?

Mon, 10/21/2013 - 17:15 | 4077287 Bay of Pigs
Bay of Pigs's picture

The clip is from the BlowHorn, not ZH. Funny they would run that on a day like this.

What do you say slaughterer? Is Faber is wrong? This stock bubble goes on forever?

Mon, 10/21/2013 - 17:40 | 4077357 Rainman
Rainman's picture

sorry to interrupt with a one word answer...CHAIRSATANESS !

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