Marc Faber Is Back: "It Will End Badly... We're In A Worse Position Than 2008"

Tyler Durden's picture

"It will end badly," Marc Faber explains in this brief CNBC clip, "the question is whether we will have a minor economic crisis and then huge money printing or get into an inflationary spiral first." If you thought that "we had a credit crisis in 2008 because we had too much credit in the economy," then Faber notes "there is that much more credit as a percent of the economy now." Of course, as Bill Fleckenstein recently noted, as long as stocks are rising, investors remain blinded by the exuberance, but as Faber concludes, "we are in a worse position than we were back then," and inflation is already here...



On China's explosive credit growth:

"Look at China, its credit as a percent of the economy has increased by 50 percent in the last 4-1/2 years. This is the fastest credit growth you can imagine in the whole of Asia,"

On the inevitable endgame:

"It will end badly and the question is whether we will have a minor economic crisis and then huge money printing or get into an inflationary spiral first,"

On the hidden inflation impacts around the world:

"Why are so many product prices in Singapore and Hong Kong more expensive than in the U.S.? It's because when you have asset inflation and high property prices, shops have to pay higher rents, so they charge more for their products. So asset inflation can flow into consumer inflation,"

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Conman's picture

Has Marc bought his tank yet?

Trimmed Hedge's picture

Those are pricey..

Does selling fear really pay that well?

zaphod's picture

"Marc Faber Is Back"

Marc Faber left? He is on ZH every day, I swear sometimes I think Tyler is Marc Faber and he created ZH just to drive links to himself...

falak pema's picture

its the club of doomers n gloomers and they all want to be rich in gold; Mckenna's gold.

L'or de Mackenna (1969) - IMDb

How does that end? 

akak's picture

Hey Falak, aren't you an Indian?  I though Indians were supposed to traditionally like gold?  Or are you one of the 'educated" elite Indians who of course are 'above' such backward 'barbarism'?

Running On Bingo Fuel's picture

You know my plans for my Indian friends....

Would you prefer fossil diesel or Indian diesel?


falak pema's picture

there's an old apache saying : you want gold so badly you prefer its touch to that of your mother.

Its true mothers die and return to hunting grounds like old bones; gold just lies there unspoken right from the beginning. 

SRSrocco's picture

Nothing like a little money printing to keep things going for a little while longer:

U.S. TREASURY: Ramps Up the Zimbabwe Style Printing Press


yogibear's picture

Bernanke/Yellen and the other fed members took notes on how high the Zimbabwe stock market climbed.

This  Fed's wet dream.

Truthseeker2's picture

It will all end with the BIGGEST Sucker's Rally of all time!

"As the market approaches 16,000, everything points to one

last hurrah for the smart money to con the stupid out of their

dumb money."

All Four Wheels Come Off The Anglo-American Juggernaut


rum_runner's picture

That's what I don't get.  Yeah we all know what's happening is a bunch of bullshit but it's happening all the same.  So long as the Fed squirts $40 billion a month basically directly into the equities market why should the markets ever crash?  Why shouldn't we end up with gradually rising P/Es for as long as the game is on?

In other words, who is putting money where their mouth is and is shorting this shit?

venturen's picture

don't you have some real estate or some fraud stock to sell people?

tempo's picture

The golden rule...He who has the money and the weapons rule. But It will end badly for the 3 billion in the undeveloped countries. For the 3 billion of us in developed countries we will continue to live well, not w/o complaining and bitching but always w a full stomach, cable/football/entertainment , cell phones, cars, a/c health care, (sex, sex and more sexx, education, etc. All developed countries engaging in competitive devaluation of currencies which supports entitlements which are necessary due to automation which makes most labor virtuously worthless. So the developed nations are strategically aligned against the undeveloped unarmed poor masses who earn $2/day while the .01% in the developed world will eventually own everything including weapons of mass destruction. The .01% have the money, the government and weapons. I am glad I live in America.

therevolutionwas's picture

Gold and silver are money,  and they are leaving developed countries big time.  Heading east.  I'm glad I can continue to buy a little money with my fiat paper.

JamesBond's picture

correct use as much of this fiat as you can now to purchase gold and silver; while you are still able...



Global Observer's picture

The developed countries are the worst places to be in today unless you are part of the elite. Global food prices will rise, but the availability will not drop. Food importers may have to subsidize food imports to keep the local prices under check, but entirely doable and preferable to food riots. Countries with subsistence level food production may have to curb food exports to keep local prices in check.

However, in the developed world, food bill will become the lergest component of their monthly expenses, pretty much like for those living on $2 a day in the developing countries. In absolute terms those in the developed world will be better off than their counterparts in the developing world, but that will hardly be a consolation when each passing day is worse off than the previous one.

dcohen's picture

As long as Mr Faber talks, markets will not correct, he needs to start going on air saying that he is convinced this will end good, then the shadowy men will start selling, because they know all the bears or realists listen to Faber, did at least.

Hedgetard55's picture

As long as Ben/Janet are printing, the markets will not implode.

yogibear's picture

Don't knock Zimbabwe, their stock market skyrocketed when they hyperinflated.

zebrasquid's picture

Take a large emerald, smash it into 1000 pieces. you now have 1000 emeralds. you feel richer? You're poorer, actually, since your rare large emerald is now pulverized. I guess that's how the Zimbabwe citizens felt, and where we all are headed.

The Big Ching-aso's picture

All this is just the tip of the ponytail.   The real hairy stuff is yet to come.

carlin401's picture

Marc say's,

In the long term gold will go up, and USD will go down.

Marc Say's

In the short-term USD will go up, and Gold will go down

Marc 'never' defines short or long,

Marc is the talking head of 'chomskys' manufacturing consent where TPTB controls both sides of the debate.

Will it end badly for whom? Certainly not for Marc,

So it will it end badly for? That is the fucking question?

ReactionToClosedMinds's picture

Sir:  I have no interest in any form in Faber's success.  Faber and Felix Zualuf were among a clear-eyed group that saw what Fall 2008 produced.  No one can predict the future .... but if you smoke, eat candy all day and drink 2 6 packs of beer every day, well, something unhealthy will result to you.  That is all they are doing .... pointing out what is increasingly obvious.   Laugh & mock Faber all you want.  Do not expect someone to change your diaper for you ... you are a free-thinking independent agent.  Do what you will ...... now is the best time to go into equities ... or maybe next week ... or early next year ........

The point ..... you want the odds on your side when you commit your capital.    To many, the odds now are not in your favor. 

chump666's picture

Marc Faber is great.  He studies history and we are repeating history.  All inflationary money print up ends in deflationary chaos.  It just this time its synchronized with the central banks throughout the world.  When it blows, we all going to feel it at the same time

dcohen's picture

Maybe "money" doesn't represent what it traditionally used to represent, and if so, how can we draw conclusions about the future just by looking at history?

Gumbum's picture


This is why most mainstream economists fail miserably at predicting growth at the moment. Their models say there should be growth but they don't understand "the real" underlying economy, energy, resources...exponential growth inevitable ends up in scarcity and depletion. To them growth is a constant, but we humans are about to learn that nothing grows forever and that money and the economy is NOT seperated from the real world.

They can print a gazilion credit units...that won't magically materialize resources.

therevolutionwas's picture

According to history, in the future money will represent toilet paper, me thinks.

ebworthen's picture

"Money" is always tied to labor, sooner or later.

The labor of the soldier, the teacher, the mason, and anyone else.

Representations of money and what it can buy are what changes.  Fiat, Precious Metals, Land, and ultimately Labor.

As the modern world devalues labor and the sweat of one's brow it becomes more and more valuable to revolt and end the status quo.

That is what history teaches.  Technology and new whiz-bang methods of valuation matter not; sooner or later it is reduced to individual labor and what individuals are willing to do, or not do.

Running On Bingo Fuel's picture

I won't feel it. I work at Walmart and get an employee discount.


therevolutionwas's picture

Yeah, but do you get a discount on the booze?

Lewshine's picture

"So asset inflation can flow into consumer inflation," That's Bullsh**!! Not as long as every bogger eating asset manager moron who recites the fed's monthly fraud data, that continually equates to 1 to 2%, since 1960 <clearing my throat> "Inflation target is well below consensus at 1.5%"  DIE!!!!!!!!!!!!!!!!!

Goldilocks's picture

END GAME: Official Movie Eugenics pt1 (9:38)

END GAME: Official Movie Eugenics pt2 (10:00)

END GAME: Official Movie Eugenics pt3 (10:00)

END GAME: Official Movie Eugenics pt4 (9:57)

END GAME: Official Movie Eugenics pt5 (9:55)

END GAME: Official Movie Eugenics pt6 (3:58)


EndGame Alex Jones full length version HD (2:19:30)

Running On Bingo Fuel's picture

2:19:30 of Alex Jones? Bro, really?


Goldilocks's picture

Wayne Madsen Reports CIA Control of Afghanistan's Opium Fields on Alex Jones Tv 1/2 (10:49)

Wayne Madsen Reports CIA Control of Afghanistan's Opium Fields on Alex Jones Tv 2/ (7:44)

Keyser's picture

Just why do you think the US military is in Afghanistan? Opium production was well down under the Taliban. Once the US came on the scene, production numbers went back to normal. The CIA has to make $$$ to pay for all those toys supplied by the MIC and what better way than to sell heroin on the world market. 


carlin401's picture

Like +40 year old News "CIA controlling Opium in Afghan", ... news to whom?

Why does the zero-head leadership, always report 50+ year old news in the context that it is 'new'.

The CIA's job since 1947 is to protect the black-market worldwide and make sure that oil, drugs, human blood, tissue, whores, all all traded in US dollars.

So long as you trade in US dollars your gig is protected in the mob sense, if you were to say trade your cocaine for euros your family would get droned in a nano-second in columbia,

This shit again has been going on +60 years, ...

Save_America1st's picture

Nice!  Thanks for posting.  His documentaries are spot on.

DOGGONE's picture

Define "Leadershit".
Include in your definition the absence of this from the public eye:
The Public Be Suckered

kensdad's picture

Of course, Faber is right.  Of course, the markets will crash again.  Of course, Central Bankers, Politicians, and Wall Street will claim that "no one could see it coming"...  again...

Einstein is rolling over in his grave as we keep doing the same thing and expecting a different result.

carlin401's picture

If you cannot fight them join them, ...

Only a fool rocks a boat in a sea of sharks.

Those in the boat ( goldman sacks ) are doing just fine, probably best place to be today would be

1.) GS

All else will eat arse-peas

Keyser's picture

After everybody and his brother has been calling for a collapse for the last several years, it gets a bit tiresome. Give us a date already or someone just pull the plug for Pete's sake.  


zebrasquid's picture

The date will be on tha date that the 1000th post like yours is posted. so, anyday day now..

Peter Pan's picture

The plan is to let the situation get progressively worse without collapsing the banks and without starting a riot. Eventually the baby boomers will die and there will be almost no one left who will remember what the better days were like.

The Ministry for Happiness will then tell the next generation that they are part of the new Nirvana.

akak's picture

"MiniPlenty has just officially announced that the monthly ObamaChocolate (aside: is that a redundancy?) ration has just been increased from 25 grams to 20 grams."

ebworthen's picture

My ice cream went from 1/2 Gallon to 3/8 of a gallon but at the same price.

That's a good thing, right?

akak's picture

It simply proves that there is no inflation in food prices.  None whatsoever.


Remember: "Ignorance is Strength"