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Marc Faber Blasts "We Are The Bubble... There Is No Exit Strategy"
"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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Makes me think of the Albania pyramid crisis of 1997.
The solution is as nature evolves: an immune system. The systems (cities, cultures) of the world are under attack from parasites. The survivors will be those who evolve an immune system that can eradicate the infection & wall off the damage behind isolation barriers, scar tissue.
These people are all teleprompted reading shills Marc... what did you expect?
the global circle jerk of central banks buying each other's bonds only works untill they either, get kicked out of the club, get in a tiff, or get get eaten by a bigger fish. Otherwise it can go on and on. It doesnt matter how big the bubble is or gets, as long as the bubble blowers still have their power we will just have periodic 2008 type events where we look over the financial cliff and choose to print up some more money. Mobs would need to find their secret gold vaults to have any chance of unseating them from their thrones
http://www.youtube.com/watch?v=VI11KrY-QtQ
"You can fool some of the people all of the time, and all of the people some of the time, and those are pretty good odds"... James Garner, somewhere back in the '60's
Quite true, eclecticskeptic, especially since it is only necessary for politicians to fool enough of the people enough of the time.
E.g., Obama only had to fool about 25% of the people during election periods, inside the context where their only real choices were to maybe vote for somebody who was apparently even worse, or could not possibly win. Elections are rigged before they start, and the odds are always extremely good for the established systems to continue to win.
http://www.youtube.com/watch?v=QPHHUS98GgY
29 dollars, t.w.
.
you see, this shit is old and/but !
it also happens to be parochial
elemental, or for all intents and purposes,
"universal" to the many.
.
the art of politics and public speaking,
entertainment, or edutainment?
mostly hideous or hideopotitous and disgusting
but persuasive enough for the time being as they say!
that is all wrong, it is fucking beautiful and
revealing art! as close to truth as we can
appreciate with broken hearts and minds.
forward!
kookoo
.
29 Dollars(Revised)
http://www.youtube.com/watch?v=c_XEHNI9LE8
.
lost on many, yes.
Where's your head? Get it out, look & see.
http://patrick.net/forum/?p=1230886
Income tax was temporary too.
One Trillion a month???? WOW.
dumb fuckers rule, always.
.
till they all die!
.
anyway poems *tm
King Khan & the Shrines - Born to Die
http://www.youtube.com/watch?v=J3f9q7Liv8k
print the pain away
Had to explain to my 15-year-old son today who loves science/math for its truthfulness that even the truth in science and math can be suspended by the powers-that-be for their self-serving reasons...until eventually the truth snaps back with a vengence.
I agree. Seems science, especially physics has been way off base for around a hundred years now. I hope we are due for that snap back soon.
Well, Ladies & Germs, there is ONE consolation for the Plebeian masses:
Unless you're talking about wars, "Once it is created, wealth is not destroyed but only transferred".
The "consolation" of the massive wealth transfer to the Elite, is that this stolen wealth can be transferred back to its original owners and creators, when TSHTF and the Guillotines roll out.
The well-armed fortress compounds of the DC and Wall St scum will hold only so long. Especially since they too depend on food, water and other supply lines. And don't forget that their Guards need to get paid and laid on a regular basis, and we got more guns than they do. When Rome was besieged by the Barbarians, and these cut off the water and food supply, the Roman Elite got just as thirsty, hungry, dirty and desperate as their servants. And more so, since the servants outnumbered them.
The Wheel of Life and Karma may turn slowly, but turn it does and it turns irresistibly. Be nice to people on the way up, because you will meet them again on the way down. :-)
The real elite of/behind what we call Rome had moved to Venice and Milan.
and the Vatican
But thats all so messy.
That's why the occupation of Palestine is so important. They took it ALL.
Just like the addict that claims "I can stop any time I want!"
We are the bubble is of course
potentially an oversimplification.
Bubbles-R-Us seems to include
the prime bad actors, the prime good
actors shaken down and facing now for
5 going on 6 years a policy of hand it
over, and a tremendous number of
people constituting collateral damage.
So those who sold the bubble could've
cleared the market long ago.
I call it economy as safe amusement park
where those who weren't qualified and
would lose their 5% down still wouldn't
have wanted that originally, their lenders
should've had some skin in the game, and
those borrowers shouldn't have their
feet held to the fire.
They're the bubblees.
It just required an American reserve
bank committed to the full market,
not the bubbleors.
But everyone's damaged by real negative
rates and a nation shafting its own
currency, though the nation's shafting
of its own real wages is different; though again,
that's just as backward and unnecessary considering
all that education can do for people,
especially when there aren't companies
shafting their own while importing huge
volumes.
Corporate charters bound by community
commitment, and temporary, openly
negotiated arrangements internationally,
would change that.
Everyone's damaged when everyone knows it will
require less principal for comparable return
as soon as financing dead weight is ended.
But for monopolistic forces and privatization
of markets, there may still be market extremes.
Charts will still portend information (though some
have been told by players who were around in the
early 20th Century that their original conception
was sales generation-purposed,) but it's still the
Batra discovery: trying to juice returns with ever
fewer qualified people, that creates the egregious
bubbles.
It was Hu who first observed the empty creditor
conundrum from the securitization and sale of risk,
and that's what enables placement of mortgages
in beachfront communities that may be washed away
by the middle of this Century.
But of course this latest bubble was designed partly
partly to gain from its collapse.
Without the monopoly and privatization we'd
have tiny bubbles.
http://www.youtube.com/watch?v=3xrsF7z98og
Might want to become familiar with the text below:
"Now, therefore, by virtue of the authority vested in me as President of the United States, and Commander in Chief of the Army and Navy, I hereby authorize and direct the Secretary of War, and the Military Commanders whom he may from time to time designate, whenever he or any designated Commander deems such action necessary or desirable, to prescribe military areas in such places and of such extent as he or the appropriate Military Commander may determine, from which any or all persons may be excluded, and with respect to which, the right of any person to enter, remain in, or leave shall be subject to whatever restrictions the Secretary of War or the appropriate Military Commander may impose in his discretion. The Secretary of War is hereby authorized to provide for residents of any such area who are excluded therefrom, such transportation, food, shelter, and other accommodations as may be necessary, in the judgment of the Secretary of War or the said Military Commander, and until other arrangements are made, to accomplish the purpose of this order."
Okay, read it three times. I am now familiar with it. Seriously...as Faber says "Vee are Doomed!
His job is to get the sheep moving all in one direction so they can more easily be slaughtered. Just because you agree or like his opinion, does not make it fact.
http://www.gonemovies.com/WWW/XsFilms/SnelPlaatjes/BondGoldFinger7Laser.jpg
No, Mister (Treasury) Bond, I expect you to die!
Might want to become familiar with the text below:
"Now, therefore, by virtue of the authority vested in me as President of the United States, and Commander in Chief of the Army and Navy, I hereby authorize and direct the Secretary of War, and the Military Commanders whom he may from time to time designate, whenever he or any designated Commander deems such action necessary or desirable, to prescribe military areas in such places and of such extent as he or the appropriate Military Commander may determine, from which any or all persons may be excluded, and with respect to which, the right of any person to enter, remain in, or leave shall be subject to whatever restrictions the Secretary of War or the appropriate Military Commander may impose in his discretion. The Secretary of War is hereby authorized to provide for residents of any such area who are excluded therefrom, such transportation, food, shelter, and other accommodations as may be necessary, in the judgment of the Secretary of War or the said Military Commander, and until other arrangements are made, to accomplish the purpose of this order."
Might want to become familiar with the text below:
"Now, therefore, by virtue of the authority vested in me as President of the United States, and Commander in Chief of the Army and Navy, I hereby authorize and direct the Secretary of War, and the Military Commanders whom he may from time to time designate, whenever he or any designated Commander deems such action necessary or desirable, to prescribe military areas in such places and of such extent as he or the appropriate Military Commander may determine, from which any or all persons may be excluded, and with respect to which, the right of any person to enter, remain in, or leave shall be subject to whatever restrictions the Secretary of War or the appropriate Military Commander may impose in his discretion. The Secretary of War is hereby authorized to provide for residents of any such area who are excluded therefrom, such transportation, food, shelter, and other accommodations as may be necessary, in the judgment of the Secretary of War or the said Military Commander, and until other arrangements are made, to accomplish the purpose of this order."
I have always had problems resolving the hyperinflation arguments (dollar collapse) versus the deflationary camp (implosion of asset prices). There are valid arguments on both sides. I am now leaning toward both happening at the same time - but to different assets. Those million dollar homes - crash. Stawks - crash. PMs, oil, food and other commodities, etc - way up due to the collapsing dollar. Thus the assets fueled by the Fed will crash, while those used by the common man will become more expensive with the weak dollar. It won't be pretty for the upper class, and even less so for the middle and lower classes.
You are probably right over the medium term. However when the crash comes everything will crash as investors will be desperate to liquidate everything on their way out the door. Then when the dust settles, paper prices of everything will remain low, but you will have to pay a premium to get your hands on anything physical, as is the case with physical gold at the moment.
I guess it can just go on like this forever ...
If Soris and Drukenmiller have any say, the U.S. is done. They will do the same of worse to the U.S..
Sorry I am just cathing up to the Drukenmill thread.
Don't you think these people at the FED know there is no escape? I do. I think they're just enabling a smooth transition to the eventual collapse. They figure that the US is the only game in town still and where is China and the rest of the world going to go if they don't keep buying what the US is selling them? Besides, the US is propping up Euro banks through the back door. The game can't end, not yet. I give it 5 to 7 more years.
chinese could simply start working less and enjoy their lives without the need to feed americans
it is more a question of food distribution in their society and figuring out some grand national project to pre-occupy chinese people with
NO, he's in the Mike Maloney camp.
You'll get both but the order is critical.
The plan & the motives dictate the order.
dumb fucjers rule
till they die.
anyway poems *tm
http://www.youtube.com/watch?v=OF6m3pq-Rfw&list=UULwXLS-KHDAABP02xEzplsg
first fiddle
So what you're really saying Marc, is derBanke has a fridge full of condiments?
Hasn't that been the plan all along?
As posted previously, IMHO it is the Chinese and not our Feds that are periodically cluster bombing the paper PM market thereby permitting them to continue to buy the real stuff at a silly price. Of course this also is to the Fed's advantage as it makes the dollar appear to be 'strong' despite the massive dilution of it actually taking place.
Everyone here seems to assume it is one of our TBTF banks (at the Fed's direction) surppressing paper PM prices. That is just too obvious an answer
Who actually issues paper gold contracts and is liable for delivery?
exit? are you mad?
why would anyone
voluntarily exit?
The stock, bond, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss.
The markets continue to rise till all short positions in the market are covered and the majority of traders move to the long side. Once this is done the market falls till all long positions are closed and short positions undertaken. Then rinse and repeat. The price mechanism has little to do with the actual demand, supply, fundamentals or state of the economy.
http://www.marketoracle.co.uk/Article40231.html
Are you seriously trying to pretend any time in history these were NOT gambling dens?
Another gray-haired asshole who made his fortune talking telling us how it is. Fuck you, Faber. We don't need you, we never did. Do you think we don't already know this? 2008 came and and went. Just waiting for it to burn down now and would appreciate it if you would do us all a favor and jump off some tall building or bridge. Asshole.
What is your problem, asshole?
No one's making you listen to Faber.
What he's saying is useful to some & correct.
Faber worked for a company in his younger years that had hired Alan Greenspan to give them analysis. After a while Faber said nobody showed up for the meetings. Apparantly no one could understand what Greenspan was talking about. After Faber had left that company he heard that they let Greenspan go. Greenspan then went on to head the Fed.
Faber is an Austrian economic school follower. They can predict the outcome, but, like Schiff and others, cannot predict the timing. They will be proved correct.......................someday.
The cricket and the ant. Winter comes....Kondratieff says so.
Yup, the fourth turning.
the reason no one can predict the timing is because every time you do a criminal steps in and changes it. you must either predict every counter-move by every criminal (who are all in charge) or you must remove the criminals & predict the outcomes-ranges for what is left (some disaster, all major criminals now blocked from further action).
The attached article was written by Bloomberg and states that OPEC is concerned about downward pressure on oil since the world market is so bad. Perhaps we have topped out.
http://www.moneynews.com/Markets/oil-OPEC-supply-price/2013/10/21/id/532176
I suspect they're more worried about competition due to supply growth coming on line elsewhere, rather than a demand slump, alone (the article even refers to it).
They are gonna come after everyone's money and assets -
you will start paying an ownership tax on everything you own.....
and so it will be defaltionary and a nightmare at that.....
Hussman's commentary is out:
October 21, 2013
Did Monetary Policy Cause the Recovery?
http://hussman.net/wmc/wmc131021.htm
John P. Hussman, Ph.D.
The world has become so real that this reality is only bearable at the expense of perpetual denial. “This is not a world,” after “this is not a pipe,” Magritte’s surrealist denial of evidence itself – this double movement of, on one hand, the absolute and definite evidence of the world and, on the other hand, the radical denial of this evidence – dominates the trajectory of modern art, not only of art but also of all our deeper perceptions, of all our apprehensions of the world…The world is the way it is. Once transcendence is gone, things are nothing but what they are and, as they are, they are unbearable. They have lost every illusion and have become immediately and entirely real, shadowless, without commentary. At the same time this unsurpassable reality does not exist anymore. It has no reason to exist for it cannot be exchanged for anything. It has no exchange value.
—?Jean Baudrillard, Violence of the Virtual and Integral Reality, 2005
Convicted financial professionals should be able to choose between prison or a good beating.
We can attach additional beatings to the sentence based on level of criminality, and the MSM can run promotional programming leading up to their televised beatings...Yes, televised.
Or perhaps just prison, as we'd all delightfullyl share in their prospects of pretty regular beatings there also..... of all kinds, bitchez
We can further raise revenue by charging money for the viewings, based on resolution (not present) or proximity (on the scene) and camera angles, seating height, etc.
Remember Queen? ( sing to we are the Champions)
WE ARE THE BUBBLE..... THAT BURST!
WE ARE THE VICTIMS OF THE FED.....
WE ARE THE BUBBLE
WE ARE THE BUBBLE
YOU ARE AND YOU TOO CAUSE WE ARE THE BUBBLES................
THAT HAVE BURST...
No deflationary collapse is possible at all (except for those assets that are claims on debt e.g. bonds, mortages etc).
For deflationary collapse to happen borrowers must repay their debts.
This aint gonna happen - they rather will die than repay their debts, they simply got no money and no skills to earn the money
Instead expect more printing to cover those lazy arses
no. what marc is referring to is the most awful of all economic calamities. inflation as a function of money supply goes hyper. inflation wipes everyone out. there is no money to buy anything. real value of everything, including perishables, collapses until capacity finds equilibrium.
the only thing he never addresses is the kyle bass scenario where capacity destruction occurs as a result of war(which resulted from the economic distortion caused by the effort to save the status quo) and equilibrium is found in the ashes, the phoenix theory.
both come to the same conclusion.
ah you mean inflation in terms of USD and deflation in terms of gold ?
WRONG.
You're reading from the fraudulent text book THEY WROTE.
You're suckered.
For real deflationary collapse to happen those holding resources need only PUSH contracts into futures that send them all to 90% drops - even if resources are NEVER sold for that price (copper, gold, silver, cattle, etc.), and forcing DERIVATIVES to all crash to zero while FORCING them into YOUR ACCOUNT by laws you haven't even dreamed of yet.
Remember, you're playing against CHEATERS and BANK ROBBERS.
I'm liking life in the bubble.
Keep blowing.
Little River band.
"What's it like inside a bubble ?.........
Does you head ever give you trouble ?......
It's no sin.......trade it in.....
Hang on.....help is on its way.
I am just hoping this shit can keep going through December January because we are heading to Europe on a wine guzzling tour of the French and Italian alps in our ongoing programme to spend any extra fiat currency we have (after having already bought a shit load of gold and two farms in two countries)
Wine vs toilet paper? Choose wine.
Fuck you Bernanke - you lose
It's a mistake to think the FED have 'boxed themselves in' or 'have painted themselves in a corner'.
THEY have no problem. They print their own money and own more and more assets. To think the FED has a problem and the ones whos assets are being bought with their money have not, YOU are mistaken en have painted yourself into a corner.
"They print their own money and own more and more assets."
And what if the 'assets', if marked to market, e.g. sub-prime mortgage packages, are actually worthless?
The Fed and any corporation can cook the books to make things look better than they really are, such as by including such 'assets' as "good will". But it is all froth and bubble if, in fact, such notional 'assets' evaporate.
The Fed relies on faith/confidence/trust that the toxic 'assets' bought via QE can be eventually sold into the real economy, but that is NOT going to happen. The industrial/productive base of the US economy has been gutted.
All that's left is a shell, despite that the military/corporate complex goes marching on towards ever-more disasters, with the tail of Israel/Zionism wagging the Washington dog.
"And what if the 'assets', if marked to market, e.g. sub-prime mortgage packages, are actually worthless?"
then YOU will buy them by force, by law, like it or not.
You don't get to make the rules unless you leave the game.
The real assets being acquired using printed money are farm lands, weapons, mines, clean water sources, gold, etc. Watch out. The rest is all a distraction, the magician waving his hand (now hers) while the assistants are setting up the rig, pick-pockets are running through the audience, and so on.
indeed. Fed incompetence is to throw people off looking for real tells for real action to come in this poker game.
None of this is a mistake. It's planned.
This is all very true but I suspect that as long as catastrophic consequences are predicted by widely read experts (and I believe there will be catastrophic consequences) central banks will be even more reluctant to take right decision. It is probably time to change strategy