Mark Faber: The Old World Order Is Over

Tyler Durden's picture

Via Callum Denness of Money Morning blog,

In the gilded ballroom of Hyatt’s Savoy ballroom, World War D‘s opening speaker Dr Mark Faber delivered a blunt message: the old world order is over.

The US reached a peak in prosperity and influence in the world in the 1950s or 1960s,’ said Faber. But since the 70s the superpower has been locked into a cycle of bubbles, busts and growing debt.

Debt, and the way it has manipulated the global economy, was the main theme of Faber’s address.

There are some people who claim to be economists who will tell you debts do not matter,’ Faber told the packed ballroom.

But the real story is different….

Faber explained the flaw at the heart of expansionary monetary policy (such as QE). ‘When you drop dollar bills into the economy…it won’t lift all prices and assets equally at the same time,’ he said. In the 60s and 70s, extra money flowing through the economy inflated wages; in the early 2000s, money printing inflated commodities. But, Faber points out, this price and asset growth is never equal.

In other words, money printing creates more bubbles. Some assets go up, they overshoot, collapse and cause significant damage which necessitates, in the view of the US Federal Reserve, more money printing. It is a vicious cycle we’ve seen since the 70s: each time there was an economic problem, the Fed printed money and created more distortions.

Bernanke’s tenure saw this trend continue, and when it came to assessing the former Fed chairman, Faber didn’t mince his words.

 ’He’s been a disaster,‘ Faber said drily. Faber pointed out that not only did Bernanke not notice the subprime disaster, he actually helped create it. ‘Under his tenure at the Federal Reserve and under his intellectual influence when working for Mr Greenspan they created the gigantic housing bubble,‘ he said.

At the heart of this expansion in debt, and cycle of bubbles and busts is the reliance of the US economy on consumption. For the last century, policy makers have encouraged consumption on all levels of society including government, and discouraged savings.

But according to Faber, consumption doesn’t create a strong economy. ‘Wealth doesn’t come from consumerism, it comes from capital spending,‘ he said.

And the problem for the US economy is that while debt has continued to rise, capital investment hasn’t. In fact, it’s been falling sharply for a long time.

If we have growing debts, there’s a difference in quality of those debts, he said.  Japan, South Korea and Taiwan used their debts to invest in factories, plants…investments that generated wealth. According to Faber however, the US has just acquired debt to fuel consumption. ‘Where’s the future income?‘ he asked.

Faber used this as an opportunity to strike a note of caution for Australia, warning the room that one day Australia’s indebted housing sector won’t be able to borrow much more. It will then enter a period of contraction or very slow growth.

That was his warning to Australia: then came the opportunity.

We live in a new word. We live in a world where the balance of power has shifted to emerging countries,’ said Faber.

He was of course, talking about China. While China’s growth story is well known, Faber gave the audience an important geopolitical sub story.

China’s massive growth triggered massive commodity export booms in emerging economies. China’s real success was exporting the products it produced back to emerging economies. This has created a significant shift in the global economy: exports from China to emerging countries are higher than exports to the US or Europe.

‘This is the new world, where the old world is largely bypassed,’ said Faber.  While most of the media debates whether the US will grow, Faber argues it will have no impact on the world, as China has a much greater influence now than the US.

Faber is no bull on China however, and warned he would be very careful about investing there. Faber sees conditions at the present time as much worse than many people realise. There are also geopolitical concerns that are often left unexamined.

Take oil. Oil consumption in China – most of which comes from the Middle East – will rise.The Middle East in my opinion will go up in flames at some point, that will be an unpleasant event, predicted Faber in his typically apocalyptic but still understated way.

For Australia, he sees opportunities in the huge numbers of Chinese tourists travelling abroad, but he believes Australia has made a huge mistake by tolerating US bases on its continent. China will not sit by and let themselves be bossed around by the US,‘ he said.

His final message reiterated the failure of the US Federal Reserve. Corporate profits had been boosted by artificially low interest rates; wealth inequality is on the rise; and to compound it all, he says the Fed won’t raise interest rates anytime soon.

Punctuated by flashes of humour and dire warnings, it was a sober message that the attentive audience lapped up.

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Pooper Popper's picture

“In the beginning of a change the patriot is a scarce man, and brave, and
hated and scorned.
When his cause succeeds, the timid join him, for then it costs nothing to be
a patriot.”

Mark Twain

NoDebt's picture

I feel like I'm LIVING the movie 'Groundhog Day'.

Every day, wake up, deteriorating economic news is reported, some new part of the globe goes up in flames, people freak, the Fed pronounces continued easy money, S&P goes up another 10 handles.  And then I wake up and do it all over again.

Even Faber's stuff sounds like I've heard it hundreds of times already (OK, that part is actually true).




Headbanger's picture

I feel like I'm living in the show "Continuum" with all this shit

This fucking global insanity caused by the elites has to be stopped !

We The People of the world just want to do our work, get paid, go home and get laid!

Well...  a stop by the pub is in there too!

Future Jim's picture

relax ...

US Federal Debt – Problem Solved

The American government has been spending trillions of dollars on programs it had no Constitutional authority to create, and such unconstitutional expenditures exceed the amount of the federal debt. Therefore,

The federal debt is unconstitutional.

Not only are most government programs themselves unconstitutional, but the debt used to pay for these unconstitutional programs, which were created by previous taxpayers, is paid for by future taxpayers. Therefore,

The federal debt is Taxation without Representation.

Taxation without representation is also unconstitutional. In fact, it is the reason America seceded from the British empire.

Given that the US Constitution is pretty simple, then anyone who loaned money to the US government should have known that they were loaning money to a fraudulent and illegitimate enterprise and thus should not expect repayment.

Of course, there would be a huge consequence – no one would be willing to loan money to the US government again until it started obeying the Constitution, which would be ...


BLOTTO's picture

The latest gadget, is just a gimmick
Another sucker, born every minute

Well I'm sick of this town, bringing me down
A first world epidemic all around
I'm sick of this town, bringing me down
A lost generation trying to act profound

All you upper class daughters, and working class sons
It's hard to save a dollar the way the world runs
We got a counterculture you can buy off a shelf
If you're losing your identity, try somebody else!

~Billy Talent, 'Surprise, Surprise'


I give a shout out to the living dead
Who stood and watched as the feds cold centralized
So serene on the screen
You were mesmerised
Cellular phones soundin' a death tone
Corporations cold
Turn ya to stone before ya realise
They load the clip in omnicolour
Said they pack the 9, they fire it at prime time
Sleeping gas, every home was like Alcatraz
And mutha fuckas lost their minds

Just victims of the in-house drive-by
They say jump, you say how high
Just victims of the in-house drive-by
They say jump, you say how high

-Rage Against the Machine, 'Bullet in the Head'


'As the headline says you're free to choose
There's egg on your face and mud on your shoes
One of these days they're gonna call it the blues

Have you no idea how the majority feels ?
So without love and a promise land
Were fools to the rules of a goverment plan
Kick out the style ! bring back the jam !

-Tears for Fears, 'Sowing the Seeds of Love'


I'm waking up, I feel it in my bones
Enough to make my systems blow
Welcome to the new age, to the new age
Welcome to the new age, to the new age
Whoa, oh, oh, oh, oh, whoa, oh, oh, oh, I'm radioactive, radioactive
Whoa, oh, oh, oh, oh, whoa, oh, oh, oh, I'm radioactive, radioactive

~Imagine Dragons, 'Radioactive'

SamAdams's picture

1913 = $1; 2014 = 4 or 5 cents...  yeah, I'd say it's just about over...

BuddyEffed's picture

I am gross and perverted
I'm obsessed 'n deranged
I have existed for years
But very little has changed
I'm the tool of the Government
And industry too
For I am destined to rule
And regulate you

I may be vile and pernicious
But you can't look away
I make you think I'm delicious
With the stuff that I say
I'm the best you can get
Have you guessed me yet?
I'm the slime oozin' out
From your TV set

You will obey me while I lead you
And eat the garbage that I feed you
Until the day that we don't need you
Don't go for help . . . no one will heed you
Your mind is totally controlled
It has been stuffed into my mold
And you will do as you are told
Until the rights to you are sold

Chupacabra-322's picture

I'm quoting Dr. PCR from a different article.

"How is it possible that the representative of the war criminal US government can stand before an European audience and speak of “rule of law,” “individual rights,” “human dignity,” “self-determination,” “freedom,” without the audience breaking out in laughter?"
-Dr. Paul Craig Roberts.

How? I will explain to you "how" Dr. Roberts as I'm sure you're aware of.

What we have is a Criminal UNITED STATES, CORP. INC. "posing" as a functional Government of the people, by the people & for the people. It's IS the absolute, unequivocal reason why the Criminal UNTIED STATES, CORP. INC. functioning under the Criminal Corp. version of THE UNITED STATES CONSTITUTION continues to rape, murder, pillage, wage illegal wars of Aggresion & TORTURE.

That IS the reason Dr. Roberts.

Polonius's picture

You left out the gold and silver smash at 3am and 8:30am every day.

Redneck Hippy's picture

America and Europe are dead, merging markets are taking over, only not the Chinese, not the Middle East either, certainly not Japan.  O.K. Probably not Brazil or Argentina either.  So who is the new boss?  Faber makes about as much sense as usual.

thestarl's picture

I don't mind the guy but his line of thought seems to contradict itself at times.

francis_sawyer666's picture

Faber is a lot like Charles Smith yesterday, the elephant is in the living room, but Faber never will and never can talk about elephant, so Faber only talks about the shit and piss on the floor that is dropped by the elephant.

WHY? Some may ask? Because like JIMMY ROGERS, FABER is addicted to the TV biz and is a meglomaniac for media attention, and the MEDIA would kill him in a nano-second if he talked TRIBE or Elephant.

Of course from the TRIBE perspective so true in the 1970's the USA was destroyed and since then its been on TRIAGE and carefully bled to the bone.

But the fact that FABER fails to shine light on the elephant or Tribe is why FABER must always be considered a part of the ZIO-MSM.

BadKiTTy's picture

@NoDebt "I feel like I'm LIVING the movie 'Groundhog Day"


Could not have said it better! 


I keep thinking I am going to wake up - but the bloody nightmare goes on..... and on..... and on........

puckles's picture

If you read the WSJ's Review section this weekend, its frontpage article on "Advice for a Happy Life" by Charles Murray, a gentleman I am proud to call a friend, advised, among other things, watching Groundhog Day until you got the message (and method).  Clearly you didn't get either...

CaptainSpaulding's picture

in the end, i hope to meet Keith moon in paradise. The man was a god.

Jumbotron's picture

Whether you believe in Satan or not....he is described in the Bible as the ultimate in selfishness.  It was all about him.  He wanted to be like the Most High.  All about I will do this.....I will bet that.

It's all about's all about I.  That's the world we live in.  A world for of Satanists.


I  by Black Sabbath.....the Dio Years.

UselessEater's picture

So be yourself.

I'll try to be my-self.

When we fall short, we can try again, each and every day - I fail all the time BUT it doesn't equate to the freaks winning.

Chuck Knoblauch's picture

"In the beginning there was light."



Headbanger's picture

No.. And God said... Let ther be Hv...

And it was good...

ZerOhead's picture

Nope... just heaven and earth...

The Beginning
1In the beginning God created the heavens and the earth. 2The earth was formless and void, and darkness was over the surface of the deep, and the Spirit of God was moving over the surface of the waters.…

Harbanger's picture

In the beginning was the Word, and the Word was with God, and the Word was God.

ZerOhead's picture

No no... not the Word but the World.

John was known to be a bit of a prankster and a heavy drinker you know...

Harbanger's picture

I'm glad you're taking the time to read.  Three lines later John says "And the light shines in the darkness, and the darkness did not comprehend it."

Keyser's picture

Perhaps both of you should read some Zecharia Sitchin. Every aspect of the book of Genesis is defined in Sumarian tablets dating 8,000 years before Jesus was born. 


UselessEater's picture

A nice vibe, best ever, if read quietly for a moment. All faiths/contemplations point to the same clarity. Then they diverge or become corrupted and become vehicles for some socipathic person....we each just need to create de-tox time from the day-to-day.... 5 min from the BS.

Stinko da Munk's picture

Well, OK, peak prosperity ended 40 years ago but nowadays we have Miley Cyrus so on balance it all evens out.

fooshorter's picture

"In the End it Doesn't Even Matter."



0b1knob's picture

Just to get your ration of crazy for the day, a passenger on the missing flight has allegedly posted photo from the US base at Diego Garcia where he is being held prisoner.

Fake or what?

NoDebt's picture

What missing flight?  I've been watching the news intently for weeks now and I haven't heard anything about a missing flight.

Grande Tetons's picture

Apparently Elian Gonzalez hijacked the plane after clubbing Nancy Kerrigan to death....that and there was some white Ford Bronco. 

RafterManFMJ's picture

I KNEW we should have thrown that rabble-rousing SOB out of the country when he was around 7 years old.

SilverIsKing's picture

In my opinion, hoax.

- They left the guys hands free?

- Separated him from everyone else?

- He was able to send to a web address using speech recognition?  The picture I get but the 'send to' address I don't.

- If you were planning a hoax, you would use coordinates that were a bit off from google maps so nothing there.

- I don't think he'd be able to hide a cell phone in his ass for 10 days but I do think it would take that long for someone to come up with a hoax such as this.

- What would be the point of keeping these people alive, unless he was the only one, since they can never let them go (unless they just drop them someplace with them never knowing who grabbed them in the first place)?

Anyway, my money is on hoax.

francis.sawyer001's picture

Go to the ORIGINAL post on BeforeitsNews, and download the black photo, then use office-photo manager to auto-color, then fool around, its quite and interesting picture.

It looks like HRC's ass if you were to put her on a copy machine and scan her fanny.

ZerOhead's picture

The airplane disappeared March 8th right? The picture was allegedly sent on March 18th.


Having a charge left on your phone after it being stuffed up your ass for 10 days is a bit much I think.

Then all of the problems of taking a dump and fishing it out of the crapper with a hood on and then reinserting it undetected time and time again without getting your hands and everything very messy... well...

If it weren't for my belief that the Neocons want a war with Iran NOW and their history of false flag attacks etc. I would have to say the Diego story is simply ridiculous. That said if they don't find any evidence of a crash soon the Diego MH370 story moves up a notch.

Future Jim's picture

I went to the supposed captive's LinkedIn page, but I couldn't send him a message unless I upgraded.

ZerOhead's picture

Now THAT would be a great marketing idea.

Anyway... planes just don't disappear and for the 'disappearance' to occur during the 2 minute airspace switch-over is a major coincidence.

And since I don't believe in coincidences (unless provided with indisputable evidence to the contrary) this plane was highjacked. Now we just have to figure out by whom and find out where the plane is now.

SilverIsKing's picture

I believe it was hijacked too.  I just don't believe one of the passengers sent an MMS message from Diego Garcia while held captive with a sack over his head after keeping his iPhone in his ass for 10 days.

Forgive me if I am naive about this.

UselessEater's picture

Up his sweaty ass; unless they have spent 10 days in air conditioned comfort - its hot and humid in this region.

francis_sawyer666's picture

Answer these questions and you will find your truth, we told you ZH would take you places, we never said  they would be good places.

1) Was the plane ordered to turn back, if so who gave the order?

2) Was the plane turned back manually or by remote control?

3) If the latter, which country or countries have the technologies to execute such an operation?

4) Was MH 370 weaponised before its flight to Beijing?

5) If so, what are the likely methods for such a mission – Biological weapons, dirty bombs?

6) Was Beijing / China the target and if so why?

7) Qui Bono?

8) The time sequence of countries identifying the alleged MH 370 debris in the Indian ocean was first made by Australia followed by France, Thailand, Japan, and Britain via Immarsat. Why did US not offer any satellite intelligence till today?

9) Prior to the switch of focus to the Indian ocean, was the SAR mission in the South China seas, used as a cover for the deployment of undersea equipment to track and monitor naval capabilities of all the nations’ navies competing for ownership of disputed territorial waters? Reuters as quoted above seems to have suggested such an outcome.

10) Why was there been no focus, especially by foreign mass media, on the intelligence and surveillance capabilities of Diego Garcia, the strategic naval and air base of the US?

11) Why no questions were asked whether the flight path of MH 370 (if as alleged it crashed in the Indian Ocean), was within the geographical parameters of the Intelligence capabilities of Diego Garcia? Why were no planes deployed from Diego Garcia to intercept the “Unidentified” plane which obviously would pose a threat to the Diego Gracia military base?

12) The outdated capabilities of the Hexagon satellite system deployed by the US in the 1970s has a ground resolution of 0.6 meters; what’s more, the present and latest technologies boast the ability to identify objects much smaller in size. Why have such satellites not provided any images of the alleged debris in the Indian Ocean? Were they deliberately withheld?

Keyser's picture

I believe you know the answer to all your questions. The whole affair stinks of the US alphabet soup agencies. 

And then there was this article.

disabledvet's picture

what order is that exactly?

"he who has all the gold rules"?
sounds familiar...

Headbanger's picture

Same old shit all the way back to the Pharaohs  and Caesars and Popes and Kings and dictators and presidents alike.

Tis high time again the common man and woman pick up their plow shares and turn them into swords to stop this madness again.

Abitdodgie's picture

Did you know you cannot be pres of the UNITED STATES if you are not of royal blood line as UNITED STATES is a corperation sole.

SelfGov's picture

Yes yes all was great until US oil production peaked and began its decline.

youngman's picture

Japan, South Korea and Taiwan used their debts to invest in factories, plants…investments that generated wealth. According to Faber however, the US has just acquired debt to fuel consumption. ‘Where’s the future income?‘ he asked.


He nails it with this statement....I agree..we make mind altering drugs...not much else...shovels are made in China....

Chuck Knoblauch's picture

US exports war and imports revenge.

Revenge that belongs to Israel.

Winston of Oceania's picture

My pitchfork was made in Austria much to my suprise but I'm making my own torch just to give the lynchings a more homey feel...