• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

Marc Faber Fears "A Vicious Circle To The Downside" Is Just Beginning

Tyler Durden's picture




 

"It's not just tapering that is putting pressure on markets," Marc Faber warns in thie brief clip. "Emerging economies have practically no growth and we have a slowdown in China that is more meaningful than strategists are willing to believe," he adds and this is "causing a vicious circle to the downside" in inflated asset markets as most of the growth in the world over the last five years has come from emerging markets. Faber suggests Treasuries as a safe haven in the short-term; but is nervous of their value in the long-term as "debt is becoming burdensome on the system."

"A lot of economic growth was driven by soaring asset prices"

On Treasuries:

"For the next three to six months probably they are a better place to be than equities,"

 

"I don't like [10-year Treasurys] for the long-term because the maximum you can earn is something like 2.65 percent per annum for the next 10 years, but Treasurys are expected to rally because of economic weakness and a stock market decline. In the last few years at least there was a flight into quality – that is, a flight into Treasurys."

On China and shadow banking defaults:

"China can handle it by printing money but it will again have unintended negative consequences... but the

problem is real... but it's not just in China..."

Faber warned of the risks of the present global credit bubble and said another slowdown could follow on the back of rising consumer debt levels – which had previously helped to create growth.

"Total credit as a percent of the global economy is now 30 percent higher than it was at the start of the economic crisis in 2007, we have had rapidly escalating household debt especially in emerging economies and resource economies like Canada and Australia and we have come to a point where household debt has become burdensome on the system—that is, where an economic slowdown follows."

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Tue, 02/04/2014 - 14:14 | 4400758 Ignatius
Ignatius's picture

No boom in the doom and gloom man.

Tue, 02/04/2014 - 14:16 | 4400765 InjectTheVenom
InjectTheVenom's picture

eventually Marc will be right ....

Tue, 02/04/2014 - 14:21 | 4400789 James_Cole
James_Cole's picture

Marc Faber: buy UST

The truth hurts bitchez

Tue, 02/04/2014 - 14:44 | 4400860 akak
akak's picture

Having to strategically pass through the dining room of the Titanic on one's way to the lifeboats does not thereby imply that one should remain indefinitely in the dining room of the doomed ship.

But we know that we can always count on James Cole(ostemy) to be a stalwart defender of the fiat US dollar, and of the corrupt status-quo more generally.

I'm still all but convinced that you are actually Jon Nadler.

Tue, 02/04/2014 - 15:12 | 4400943 BaBaBouy
BaBaBouy's picture

Fedipulation Continues...

GOLD Back To The Same 1250 Point, AGAIN!!! AND Dow UP...

Same Old Magical Bullshit.

Tue, 02/04/2014 - 16:30 | 4401330 kaiserhoff
kaiserhoff's picture

I usually aree with Faber, but the risk reward on treasuries sucks.

When someone wants to get out of treasuries, everyone will be rushing to the exit.

"Liquidity is always an illusion."

    Michael Milkin

Tue, 02/04/2014 - 17:01 | 4401479 rosiescenario
rosiescenario's picture

"...collecting nickels in front of a bulldozer..." comes to mind... Taleb.

 

Even Faber displays that almost universal inability to correctly measure risk when seeking a reward....those boarding the Titanic believed the ship to be unsinkable.

Tue, 02/04/2014 - 17:32 | 4401625 WarriorClass
Tue, 02/04/2014 - 19:29 | 4401969 new game
new game's picture

there is a parking spot with your name all over it.

you are mr. bond? well than park that bitch!

Tue, 02/04/2014 - 21:09 | 4402257 Crisismode
Crisismode's picture

 

 

Something's happening here,

What it is, ain't exactly clear,

There's a man with a gun over there,

Telling me I've got to beware . . .

 

Well now, ain't that the truth.

Wed, 02/05/2014 - 04:23 | 4403100 Nehweh Gahnin
Nehweh Gahnin's picture

The rhythmic chime of Buffalo Springfield.  Ahhhh...

They succeeded more than they knew.  They became the enemy, but at the same time taught their nemesi.

Thu, 02/06/2014 - 13:34 | 4408166 MeelionDollerBogus
MeelionDollerBogus's picture

LULZ. Americans will try to be illegal immigrants to CANADA & all over the world during the Empire collapse.

Tue, 02/04/2014 - 21:27 | 4402316 New_Meat
New_Meat's picture

BaBaB--

"Fedipulation Continues..."

  • Gravity
  • Taxes
  • Death

Yep, got it ;-)

- Ned

Tue, 02/04/2014 - 15:05 | 4400971 James_Cole
James_Cole's picture

I'm still all but convinced that you are actually Jon Nadler.

Nope, Jon is too busy running Barrick these days to hang out on zh. 

http://www.mining.com/barrick-gold-recalculates-gold-reserves-based-on-1...

Tue, 02/04/2014 - 15:10 | 4400991 akak
akak's picture

Newsflash, James: Jon Nadler (and/or his ilk) HAVE been running The Evil Empire, a.k.a. Barrick Gold (sic), for nigh on three decades now.

By the way, what was that little revelation from Barrick oh, around ten years ago, in the Blanchard case about trying to claim sovereign immunity for suppressing the price of gold on behalf of the US government?

Tue, 02/04/2014 - 15:21 | 4401026 James_Cole
James_Cole's picture

There's an interesting endpoint to your logic which seems to have escaped you. If everyone is suppressing the gold price on belaf of the US .gov - including no less than the worlds biggest gold producer - what does that suggest about gold as investment vs. ust?

Note, I'm not making that argument but you are lol

Tue, 02/04/2014 - 15:27 | 4401049 akak
akak's picture

There's an interesting gap (well, the latest of many) in your 'logic' which seems to have escaped you.

In what way does Barrick constitute "everyone"?

Oh, and there is another interesting gap in your 'logic' which seems to have escaped you: how many market distortions and manipulations have lasted indefinitely, or forever?

Indeed, you are looking more and more like Jon Nadler all the time.

Tue, 02/04/2014 - 15:33 | 4401064 James_Cole
James_Cole's picture

 

In what way does Barrick constitute "everyone"?

Everyone important: all the exchanges, futures, etfs, biggest gold producer (no doubt to your mind many of the other producers), the WGC... the list is exhaustive. Seemingly the only ones you are certain aren't supressing the price are a few internet sites + Schiff and his buddies lol

 

Tue, 02/04/2014 - 15:40 | 4401098 akak
akak's picture

That's quite a netfull of red herrings you've dredged up there, james.

For the record, I have never implicated nor even discussed the exchanges, futures market, or ETFs as part of the official campaign of suppression of the price of gold.  The WGC most certainly has an anti-monetary gold bias, but again, is not part of the price suppression.  For that matter, most if not all 'establishment' organizations and mouthpieces are part of the anti-gold propaganda campaign, but do not and can not take part in the obvious gold price manipulation, which is presumably mostly in the hands of the US Federal Reserve and certain other central banks and their lackeys (i.e., JP Morgan).

Tue, 02/04/2014 - 15:48 | 4401126 James_Cole
James_Cole's picture

For the record, I have never implicated nor even discussed the exchanges, futures market, or ETFs as part of the official campaign of suppression of the price of gold.

My memory isn't good, but it's not that bad. 

Tue, 02/04/2014 - 15:50 | 4401135 akak
akak's picture

And the weasel squirms when confronted by his (latest) lies.

Tue, 02/04/2014 - 16:24 | 4401306 Carpenter1
Carpenter1's picture

I live in Canada and we have coined a term here; "Nillionaires"

Nillioanires are everywhere, they have leased cars, maxed out credit lines, and own million dollar houses with 5% down. They look like millionaires but have NIL in the bank.

 

It's epidemic, Canadians are absolutely clueless as to the reality of this world. Canada will be hit especially hard, since consumer debt is far higher per person than it was in the US in 2007.

 

Canada is doomed.

Tue, 02/04/2014 - 17:49 | 4401681 gmrpeabody
gmrpeabody's picture

Classic...+100

Doomed may be a bit strong..., but in for a rude awakening seems to fit.

(along with the rest of us)

Tue, 02/04/2014 - 20:19 | 4402111 DoChenRollingBearing
DoChenRollingBearing's picture

I would NOT have guessed that Canadians were more in debt than Americans!!  Thanks for that piece of "weird but true" news.

Tue, 02/04/2014 - 21:17 | 4402281 EARLPEARL
EARLPEARL's picture

only because they can borrow easier than americans.

Tue, 02/04/2014 - 22:43 | 4402524 pain_and_soros
pain_and_soros's picture

There is not an insignificant number of (socialist) Canadians who view themselves as being smarter than the "typical" American (redneck)....

After all, Canada avoided the worst of the "financial crisis" in 2008 since their banks were much more conservative (i.e. risk averse) than their US counterparts...our health care system is "superior" to the US system that serves only the rich, blah, blah, blah

There is a certain (completley unjustified) snobbiness to a large element of Canadian society (the socialists) who will be in for the shock of their lives when their treasured social programs are completely gutted by economic reality coming soon to indebted governments the world over...

Instead of learning from the mistakes the US (banks & consumers) made, Canadians are determined to prove they are "smarter" & in so doing, will prove they are just as dumb, if not dumber.

Tue, 02/04/2014 - 22:48 | 4402532 akak
akak's picture

You know, I have liked almost every Canadian that I have ever met, but you are exactly right, there IS a certain snobbishness among many Canadians, along with their well-known nationalistic insecurity that is continually manifesting itself by Canadians constantly trying to convince themselves that they are SO different from the USA, when 99% of the time they (or their products) are just Americans with a red maple leaf slapped on somewhere.

Wed, 02/05/2014 - 00:32 | 4402839 Rock On Roger
Rock On Roger's picture

 You damn right.

Canadians are just about like americans except we lack the greedy liar gene. You know, the gene that makes americans invade, pillage, and murder in foreign lands so they can steal the natural resources of those lands.

So ya, Canadians are different from americans.

Stay the fuck off my lawn.

 

Stack On

 

 

Wed, 02/05/2014 - 01:03 | 4402913 Professorlocknload
Professorlocknload's picture

My favorite thing about Canada has a gold maple leaf stamped on it.

Wed, 02/05/2014 - 02:43 | 4403042 Rukeysers Ghost
Rukeysers Ghost's picture

My favorite thing about Canada has a gold maple leaf stamped on it.

 

Gordon Lightfoots ass?

Wed, 02/05/2014 - 03:27 | 4403065 401K of Dooom
401K of Dooom's picture

Ya don't mind sucking up to Fidel?  Why brag about how wonderful you are now?

Thu, 02/06/2014 - 13:33 | 4408163 MeelionDollerBogus
MeelionDollerBogus's picture

Fidel Castro was a fine man compared to almost any American leader, except JFK. Kennedy was a decent President.

Thu, 02/06/2014 - 13:34 | 4408161 MeelionDollerBogus
MeelionDollerBogus's picture

It's not the products, it's the culture. We have a culture which is NOT built on corruption upon each other, though, if you ask any First Nations people, especially those stuck on reserves, they will have a deserved differing opinion.
We also have more land to work with than the USA so our future looks bright so long as we can keep the illegal American immigrants down to a decent input-stream. Useful: come on in. Racist, nazi, right-wing bible-thumper: don't bother crossing our border.

Wed, 02/05/2014 - 01:55 | 4402988 holgerdanske
holgerdanske's picture

careful with double negatives 

Wed, 02/05/2014 - 03:25 | 4403063 401K of Dooom
401K of Dooom's picture

Ya wanna see Canuck pride at work?  Listen to the Howie Carr show at AM 680 WRKO, from Boston MA.  There is a guy named Steve, who iwll call in from Montreal everyonce in a while.  He is always giving the leftie line and bragging about Canada's health care system.  He is the perfect example of Canadian arrogance and makes ya want to vomit!

Thu, 02/06/2014 - 13:32 | 4408158 MeelionDollerBogus
MeelionDollerBogus's picture

You're an idiot. Our healthcare system delivers more & costs less. Period. Americans always pretend wait-times are  years but they aren't. Wait times are manageable & the only situation I've ever seen go really wrong was a friend of mine who needed a heart transplant. He wouldn't stop smoking & he can't get a transplant until someone's ready WITH a compatible heart & no amount of money in the world will get you that faster unless you're willing to find a donor & kill him/her early. We don't do that & far as I know, Americans don't either.

Thu, 02/06/2014 - 13:32 | 4408152 MeelionDollerBogus
MeelionDollerBogus's picture

Gutted? So far we have the tax dollars to pay for it. Show me the job losses & I'll agree with you. Those jobs pay revenue into healthcare & while transfer payments happen between Federal & Provincial, each province runs its own firewalled healthcare budget. That means if one province can do better it will do better even if another falters for a healthcare budget.

Plus there's prevention: I've been smart enough that I haven't needed to have a doctor at all since age 8.
I don't depend on the healthcare system but if a broken leg happens it's nice, though rare, to have an affordable fix-up.

Thu, 02/06/2014 - 13:29 | 4408148 MeelionDollerBogus
MeelionDollerBogus's picture

Perhaps it's consumers trying to keep up with the latest iCrap & xBaux.
Or maybe cars? Dunno. Housing isn't in a bubble in every city, Toronto & Vancouver, Winnipeg don't represent the entire country.
On the other hand, we also don't have giant medical debt to deal with. Our healthcare system is very cost efficient per person, even per taxpayer, so the typical American model of 3 mortgages to pay for medical care isn't how we do things here.
I carry no debt. I don't know about everyone else but around me it looks like cars & houses are what does it. Student loans may be the case too but education costs far, far less in Canada than the USA.

Tue, 02/04/2014 - 20:49 | 4402194 The Gooch
The Gooch's picture

I think you mean the "North American Union".

 

Tue, 02/04/2014 - 21:00 | 4402224 PhilofOz
PhilofOz's picture

Hmmm, a good term to use as far as the majority of Australians are right now. We can get so far into debt we can buy a house full of shit and not even commence payments for three years, by which time that shit you brought is already falling to pieces.

Tue, 02/04/2014 - 21:17 | 4402285 kaiserhoff
kaiserhoff's picture

I've been meaning to ask.

How can I get my ass deported to Australia?

Wed, 02/05/2014 - 01:09 | 4402924 mt paul
mt paul's picture

dress up like a big kangaroo

ask for asylum 

Wed, 02/05/2014 - 02:37 | 4403034 Squid-puppets a...
Squid-puppets a-go-go's picture

the easy part is to steal a loaf of bread.

The hard part is to get a time machine to take you back to Ireland 200 years ago

 

Wed, 02/05/2014 - 05:15 | 4403139 spdrdr
spdrdr's picture

You will find that your donkey is ineligible for transit to (and agistment within) Australia or New Zealand, if it emanates from a Rabies-prone jurisdiction.

Sorry.

 

 

Wed, 02/05/2014 - 00:57 | 4402902 Rock On Roger
Rock On Roger's picture

I live in Canada and I've never heard of a nillionaire. Must be a eastern canada thing. Where I live the millionaires drive old pick up trucks and wear rubber boots. There is no keeping up with the jones. My debt is very low, my stack is growing higher and I woke up quite a while ago.

Eastern Canada is doomed.

 

Stack On

Wed, 02/05/2014 - 19:43 | 4406057 MeelionDollerBogus
MeelionDollerBogus's picture

Agreed: I've never heard of it & see little of the Jones'town syndrome.
With the high incomes though I'd hope people would know better than to go so deep into debt. I guess not.
Let the good times roll & imagine it can never end. I didn't know Alberta & Manitoba had so many unicorns & leprechaun hunters.

Wed, 02/05/2014 - 19:43 | 4406050 MeelionDollerBogus
MeelionDollerBogus's picture

Not this Canadian: stocked food, gold, silver, no debt, no excessive bills, reliable job & ability to just move on if needed.

Tue, 02/04/2014 - 19:25 | 4401956 Meremortal
Meremortal's picture

Hey bud, this is just business as usual. One of my favorites is when they analyze charts. Charts of the 'manipulated/controlled' market, be it gold, stocks or whatever.

It never occurs to them that charts derived from manipulated markets are meaningless.

But this is the place where you can have it both ways! Important charts from false and manipulated markets.

 

 

 

Wed, 02/05/2014 - 19:43 | 4406048 MeelionDollerBogus
MeelionDollerBogus's picture

Charts derived from a manipulated market show the timing & degree of manipulation.
That's not meaningless, that's critical. Same as how NANEX charts fraud in quotes. Hunsader is not telling you how the market ought to move, he's showing forensic evidence of a crime scene.

Wed, 02/05/2014 - 19:40 | 4406045 MeelionDollerBogus
MeelionDollerBogus's picture

No, the biggest gold producers will be China, a country, not a company.
The etf's don't even matter at all & Barrick certainly is NOT in charge of those.

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