Marc Faber Redux: "I Don't Trust Anyone... Hold Gold Outside The US"

Tyler Durden's picture




 

Sometimes it's worth remembering that while the demise of the status quo may take a while, there are actions one should be taking despite the sound and fury each and every day. As Marc Faber warned, "I don’t trust anyone." Simply put, Faber blasts, "the monetary policies as they are implemented by central banks around the world, are actually preventing the markets from clearing and [not allowing] the economy to truly improve." His recommendation, he'd "prefer investors hold physical gold in a safe deposit box, ideally outside the US," because "Fed policy will destroy the world."

Everyone will print money... (one of Faber's best from 2 years ago!! his reasoning remains impeccable)

And here recently:

  • CNBC: “Uh, so do you thus not trust US banks or US custodians? Do you think they might fail or abscond with the gold?”
  • Faber: “The US is a country that likes to create trouble, but they don’t like to clean up things.”


 

“I prefer if investors hold physical gold in a safe deposit box, ideally outside the US, in various locations... Switzerland, Singapore, Hong Kong, Australia, Canada... I think it’s important in today’s very uncertain world to diversify, not only the various asset classes... but also the custody of your assets should be in different jurisdictions.”

 

“We’ve now been five years into the bull market and the US economy bottomed out in June 2009. We already had a crack-up boom—not in the economy of the typical household, but in the economy of the super-well-to-do people, whose asset prices rose dramatically and as a result created a huge wealth inequality.”

 

“My view would be that we have already printed so much money, and to accelerate it will be bringing about numerous other problems, so my time frame is that the [bubble], maximum, will burst in three years’ time.”

Faber continues,

Once the collapse happens, the power of central banks will be curtailed greatly because people will realize who brought along first the Nasdaq bubble in 1999: The Federal Reserve. Who brought about the housing bubble between 2001 and 2007? The Federal Reserve. And who is bringing now along another great credit bubble and asset bubble? The Federal Reserve.”

Central Banks are preventing The Markets to clear and The Economy to truly improve (via King World News)

The monetary policies as they are implemented by central banks around the world, are actually preventing the markets to clear and the economy to truly improve. ...And there is wealth inequality to the extent that not the 1 percent but the 0.1 percent become immensely well-to-do because money printing helps the financial asset players and the real estate owners, and the majority becomes poorer.

 

The Fed has these statistics. They compile them themselves. In the U.S., since 2007 the majority of Americans in terms of wealth are poorer today by 40% than in 2007. But the 0.1% are far wealthier. That is the problem. When the wealth inequality increases at the expense of the majority, then you get Hollande in France who says, ‘If things go bad for you, if you are suffering, it’s all the fault of these rich people that abuse the system.’

 

The rich did not abuse the system. They behaved in a capitalistic way. The Fed abused the system by printing and printing and printing, and that created this situation where the cost of living of the lower income recipients is going up strongly because of energy costs, transportation costs, healthcare costs and food costs.

 

But the rich do not suffer because for them food is a tiny portion of their expenditures. It’s nothing compared to the expenditure of the private jet, so they don’t care about that. But if you have a household income of $40,000, and you spend say 30% to 40% on food and energy and transportation every year, it matters whether these prices are going up or not. So for the majority of people life has become harder, whereas for the .01 percent life has become a paradise. But that will change one day in my view.

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Wed, 05/07/2014 - 21:21 | 4738186 Slave
Slave's picture

The only place I'll be holding gold is in my gun safe.

Wed, 05/07/2014 - 21:31 | 4738226 zaphod
zaphod's picture

Your gun safe is known through registration lists and likely to be searched in a SHTF moment, that's the last place I'd put it. 

Bury your gold 6 feet underground in a remote spot known only to you and your wife and maybe kids. The location is a brain wallet and that is the safest place for anything.

Wed, 05/07/2014 - 21:36 | 4738234 Grande Tetons
Grande Tetons's picture

My mom hid hers underneath the bible that was next to her bed in plain view. 

Nobody will look there, she said. 

She had a point. 

Wed, 05/07/2014 - 21:46 | 4738257 Say What Again
Say What Again's picture

I love this quote by Faber;

.

"The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part."
Wed, 05/07/2014 - 22:01 | 4738292 lickspitler
lickspitler's picture

The Ultimate Collection of broken records.

Faber, Sprott, Turd Ferg,Sinclair, Eric King,Celente,Pento,Turk,Fleckenstien,

Featuring such hits as: Resets-a-comin,   Don't touch my Gold ,  We been fucked by the fed,  The DOW is a lie. and the NSA is in my ureathra.

 

Good luck with that. 

Wed, 05/07/2014 - 22:27 | 4738382 Wahooo
Wahooo's picture

Nailed it. They're like old cars or trucks you hardly ever use - you start them every so often just to,keep them running.

Wed, 05/07/2014 - 23:56 | 4738632 Big Slick
Big Slick's picture

Macro-economists like Faber have correctly predicted 8 out of the past 3 economic crises.

Thu, 05/08/2014 - 00:07 | 4738656 old naughty
old naughty's picture

Okkkk, one for the road !

Thu, 05/08/2014 - 00:22 | 4738665 Soul Glow
Soul Glow's picture

Safe deposit boxes?  I'll stick with a coffee can under the sink.

Thu, 05/08/2014 - 08:23 | 4739199 N2OJoe
N2OJoe's picture

I'll stick with a false PVC pipe in an attic or basement

Or a false metal HVAC duct

Or a false electric outlet granting access to the space between wall studs

Or a false septic pipe

Or a rusted out old car

Or an old unused heating oil tank

Or in/buried under a rusted out old car

Or inside the bead of a junk wheel with a tire

Or buried under a compost pile

So many possibilities if you use your imagination for anything invonvinient, innocuous, or disgusting to check, move or sift through. Also greater distance from a structure or manmade landmark makes for a less detectable undergrounde cache.

Wed, 05/07/2014 - 22:56 | 4738482 FreedomCostsaBu...
FreedomCostsaBuck-o-Five's picture

you forgot Graham Summers...

Thu, 05/08/2014 - 00:05 | 4738653 bunnyswanson
bunnyswanson's picture

Here is the new reality...working 60 hours a week at a job you've been doing for 30 years and making half of the income you made 10 years ago, with no benefits, no overtime, no retirement...in fact, independent contractor status with 14% off the top fo social security taxes.

Mortgage due on 1....late on 16th...on 7th (payday), I make my payment and 30 minutes later, Chase bank is calling my up asking for my payment....never in 15 years has this happened.

Just imagine:  The bank no longer accepts US dollars for payment of bills...JUST IMAGINE WHT THE FUCK THAT WOULD MEAN.L

 

Thu, 05/08/2014 - 00:33 | 4738696 BeanusCountus
BeanusCountus's picture

You are wrong. My bet is you have never studied history. Or economics. Or psychology. Or anything. Perhaps you believe in the new modern thinking that debt doesn't matter, people will react in a rational way and the control of the dissemination of information can prevent chaos forever. I beg to differ. The masses are a mob. And a dumb one at that. Plain and simple. The mob will move when their "stuff" is taken away. And there is no way the western world can ever pay for that "stuff" that the mob has become accustomed to. If you would ever listen to the message of those you dismiss so quickly, you would understand that its hard to predict the "when", but the "if" is not even a question.

Thu, 05/08/2014 - 01:08 | 4738736 WTF_247
WTF_247's picture

Do you actually think the status-quo is sustainable?  Meaning the US can borrow 5-10%% of GDP indefineately (and increasing each year to pay former debt owed)?

If so then why the fuck does anyone pay taxes if the govt can just borrow the money with no consequence?  Why should anyone work - just print and give it to me already.  Why even bother with all the crap the IRS gives people - eliminate it.

You already know the answer - handing out free money to anyone who wants it makes money worthless for trade.  The US and other countries are going about the same mission at a snails pace.  They have all colluded together to devalue at the same rate.

If England, France, Italy, Canada, US, Germany and other major FX currencies ALL devalue by printing at about the same rate, the FX cross rates stay the same.  That makes stupid people (and the media) think that everything is fine.  Its a race toward 0 but the cross rate remains the same.  Until it does not.

The media (and even broker/dealers to the public) are conditioned to report spikes up or down in FX.  Govts are way, way ahead of this.  Devalue equally and nothing appears to be happening.  It takes a long time before the results actually manefest.

As with any bubble (aka .com, and many others) - calling the top is pointless.  Irrationality can last longer than you can remain solvent.  However - it can and will revert.  Faber is right on his analysis just wrong on the timing.  It is very possible that some uknown event (massive technological change) will change/spark the economies of the globe in the right direction - only time will tell.

Wed, 05/07/2014 - 22:41 | 4738429 naughtius maximus
naughtius maximus's picture

 If we spend it on gasoline it goes to the Arabs. 

 

You mean the mexicans and Canadians

Wed, 05/07/2014 - 23:01 | 4738493 TruthTalker
TruthTalker's picture

Thank you I needed a good laugh!

Thu, 05/08/2014 - 00:16 | 4738667 BeanusCountus
BeanusCountus's picture

Classic. Nothing else to say.

Thu, 05/08/2014 - 00:28 | 4738687 intric8
intric8's picture

Faber's a riot. Try getting your physical gold back into the u.s. If such a scary crisis hit. America would declare gold contraband. It would be confiscated at customs. Some peeps dont realize it was once actually illegal to personally own gold in america.

Stock up on ammo. At some future time it might be worth its weight in gold

Thu, 05/08/2014 - 01:51 | 4738785 HardAssets
HardAssets's picture

Who knows what's gonna happen in the future ?  I sure don't.

Maybe its good to spread your bets around as much as possible; I can see that.  But there are problems with the 'store your gold overseas' meme also.  What if they grab your gold as you try to bring it back into the country. What if they grab you if you try to leave the country to get it. What if they declare gold a 'strategic asset of critical national security importance and seize those nice big fat vaults overseas (but leave a nice 'I.O.U.' of course).

There are no 100% guarantees on anything in this world.

Thu, 05/08/2014 - 08:34 | 4739163 free_lunch
free_lunch's picture

"There are no 100% guarantees on anything in this world."

 

- You will pay taxes

- You will die

- Politicians will be corrupt

- Money devalues

- Bubbles will implode

- Most people are easy to fool

- Free thinkers with real analytical insight will always be scarce (and be ignored)

- People NEED to be ruled (the alternative is chaos)

- The population numbers have to be reduced or at least contained at present level(pray it will be through birth control)

- Real democracy sounds well but is no solution (talk with average people on the street and imagine they got to decide policy(most can't even point out Germany on a map, or have no knowledge of concepts like exponential growth) Real democracy with voting rights linked to IQ- and personality- test could be worth a thought?

- Things will get much worse before there is any hope for improvement

- If money is all you care about, your life is worthless

- ..

 

Joe Rogan - Devolution Of Stupid People: http://www.youtube.com/watch?v=Sf8R5ZlDiJg

 

Idiocracy: http://www.youtube.com/watch?v=icmRCixQrx8

 

The Most IMPORTANT Video You'll Ever See (exponential growth): http://www.youtube.com/watch?v=u5iFESMAU58

 

 

World population growth:  http://www.susps.org/overview/numbers.html

 

Thu, 05/08/2014 - 06:45 | 4738975 stocktivity
stocktivity's picture

...but the prostitutes will spend it at Walmart.

Wed, 05/07/2014 - 22:15 | 4738335 Robinhood
Robinhood's picture

I suggest buying guns and ammo to defend your property. Stand and fight for your freedom. Molon Labe muther fuckers. Is this fight club or pussy out, run and hide cunt club? 

Thu, 05/08/2014 - 02:27 | 4738810 bunnyswanson
bunnyswanson's picture

Cities, small and large, will see the police departments collapse under lawsuits from the too numerous to count police brutality lawsuits (last one is a teen who died after having his throat sliced open by a cop searching for "swallowed" drugs.

 

then, it's off to eh FEMA camps..or more precisely Find and Eliminate Malcontent Americans

 

http://www.secretsofthefed.com/teen-dead-alabama-police-cut-throat-open-...

 

 

"In an effort to retrieve the alleged bag, the lawsuit says police had to shove a sharp object into the teenagers throat. Lawyers for the Smiths say drugs were never found in his throat or stomach.

The autopsy report confirms this, stating that there was no indication of anything unusual found in the teens body."

The autopsy goes on to say:

“Because of the circumstances of this event, it is difficult to discern if the decedent died from a drug overdose or an asphyxia event exacerbated by either the occlusion of the airway by the foreign object, a possible vascular occlusion associated with the neck restraint, or from a combination of all the events that transpired during this incident.

Thu, 05/08/2014 - 02:41 | 4738826 ebear
ebear's picture

Buried deep in the New Mexico desert, with the GPS coordinates on a lottery ticket pinned to your fridge.

Wed, 05/07/2014 - 21:37 | 4738237 Long-John-Silver
Long-John-Silver's picture

I keep my gold and silver safe in boating accident sites.

Wed, 05/07/2014 - 21:44 | 4738252 OC Sure
OC Sure's picture

LOL!

Wed, 05/07/2014 - 22:00 | 4738288 Anusocracy
Anusocracy's picture

I keep my gold in my teef.

Thu, 05/08/2014 - 00:11 | 4738661 TheAnswerIs42
TheAnswerIs42's picture

We have ways of recovering that...

Wed, 05/07/2014 - 21:49 | 4738261 james.connolly
james.connolly's picture

This is good advice, my only caveat is that when you have to run away from the USA, you have no idea how many years before you can return safely to get your gold back.

>>>

I advocate burying a small percentage remote from your home,

But you need to keep the majority of your GOLD in a safe BANK, there are many 'registered gold' places in ASIA, where family's have kept GOLD safely for century's.

Go travel and find these places and then you never have to worry about your gold.

In ASIA its always been the case that GOLD is privacy, and nobody tells the GUBMINT about your GOLD.

In the USA they have conditioned you that you have no secrets, but in ASIA it really is this way, your GOLD is nobody's fucking business.

Once you have your wealth secure, you can roam the world as a poor person and enjoy life, without fear of theft.

Sit in the USA, and your just waiting for a knock&talk, they will beat your children until you tell them where the gold is, and you EVER bought GOLD in the USA they know, just like if your EVER BOUGHT a GUN, they know.

 

Wed, 05/07/2014 - 23:32 | 4738587 spine001
spine001's picture

Just consider that if TSHTF the airline industry will be one of the first ones to go.

Thu, 05/08/2014 - 01:34 | 4738765 agent default
agent default's picture

With FATCA in place any gold held with a bank or any other financial institution is reported to the US government.  You have to be completely out of the banking system.

Thu, 05/08/2014 - 04:46 | 4738908 Fred C Dobbs
Fred C Dobbs's picture

Gold at this time held outside the USA does not have to be declared under FATCA.  The following is from Arthur Bell CPA website.

quote

For instance, gold held in a safety deposit box should not be considered an SFFA since safety deposit boxes typically are not financial accounts for FATCA purposes. However, gold held in a custodial account maintained by an FFI would be considered an SFFA. 

unquote

Thu, 05/08/2014 - 05:45 | 4738942 james.connolly
james.connolly's picture

Google "Black listed banks"

These are banks that told FATCA/IRS/USA to FUCK-OFF,

There are many,

The IRS doesn't control the world, except in your own mind.

 

Thu, 05/08/2014 - 10:52 | 4739746 agent default
agent default's picture

Can you mention some?  My search came up with nothing

 

Wed, 05/07/2014 - 23:34 | 4738589 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

zaphod

The risk is real that you may literally lose it if you bury your gold (trust me on that, at least my loss was small...).  Divide your Au up into two or more lots, bury some if you like, hide the rest, give some to any kids or grandkids when they are ready.   Overseas if you can, although that was much easier a few years ago.

:)

Another alternative re overseas is to loan money to someone you trust and/or have other quiet assets "over there".

And of course, Bitcoin!  There is nothing wrong with having 1% in BTC.

Thu, 05/08/2014 - 05:00 | 4738917 Bernoulli
Bernoulli's picture

100% agree, but I would reduce the people who know it to maximum +1 (maybe not kids, never know how "long term" they think) and also divide the gold up and bury it in two remote underground spots.

Wed, 05/07/2014 - 21:23 | 4738196 fonzannoon
fonzannoon's picture

"best of" tonight? Tyler must have a hot date! Go get em Tyler!

Wed, 05/07/2014 - 21:30 | 4738220 Bear
Bear's picture

There is no place to hide on the globe, gold will be under attack (and confiscation) by every central bank on the planet. It's an easy call for gov to make ... give up your gold at a 'fair' price to save the nation, it's your patriotic duty.

I think it will be part of the Gold Wars as a means to strip the last vestige of wealth from the people before they declare mission accomplished with a Global Fiat Currency.

Think about it. Who would stop them?

Wed, 05/07/2014 - 21:31 | 4738227 Tinky
Tinky's picture

Gold will be under attack by the PBOC? Really?

Thu, 05/08/2014 - 08:43 | 4739251 free_lunch
free_lunch's picture

What about coffee, diamonds, copper, platinum, cigarettes, liquor and other alternatives that are not in risk of confiscation..?

Wed, 05/07/2014 - 21:30 | 4738223 peter4805
peter4805's picture

Bad advice from Faber. If you can't touch your gold you don't own it.

Wed, 05/07/2014 - 21:43 | 4738250 james.connolly
james.connolly's picture

Good advice I just wrote this a few minutes ago in response to Fred, I think only the BITCOIN fuckheads think this way,

>>>

If you have GOLD in your posession, then they can take your gold,

Malaysia, Singapore, and Hong Kong,; all can buy 'registered' GOLD, and keep it safe, keep it secret, and all you have to do is get off your lazy ass and go travel and take care of business.

The problem is that UNICORN's don't have any fucking money,.. so its a lame topic on this forum.

Thu, 05/08/2014 - 01:17 | 4738744 WTF_247
WTF_247's picture

Bullshit.  Until the Fedocrats in that country declare an "emergency" and then confiscate.  I can assure you, almost 100%, that it will be far more palitable for confiscation of "foreign" assets first rather than national.  The people of that country will support it almost 10:1.  Foreigners will be blamed for the ilks that plague the nation.  You do not think if the "borrow and spend" model of global prosperity hits the fan that the US will not be blamed for all of it??

You are  making a BIG asumption about future politics and that the US and its citizens will always be viewed in a favorable status abroad.  Based on history and the shifts of power over time this will not always be the case.  Tomorrow you are fine.  10 years from now, who knows.

 It always starts that way. I would NOT keep anything in a foreign bank that I would not mind losing.

Thu, 05/08/2014 - 05:25 | 4738931 Winston Churchill
Winston Churchill's picture

As a Switzer, fine for him.
Americans generally will be held accountable for the ravages
of Uncle Scam in a SHTF situation.
Fair or not, that gold will be taken for reparations, count
on it.

Thu, 05/08/2014 - 05:41 | 4738936 james.connolly
james.connolly's picture

Not many people understand this, that this time the USA ain't going to come out on top, and that the world KNOWS about MH-370, they know about the 100 millions corpses left aside by the USD 'reserve currency' adventure.

I completely agree, they will come to the USA like post-civil war and carpet bag everything, and they will take all USA gold that wasn't already stolen.

Then they will take every surviving USA citizen and rub his/her nose IN the shit of their making ( death ), not unlike how germans were forced to go see the death-camps.

It's coming, like it or not.

Nobody cares about the 1% whining, or how your not part of the PTB, your an 'american' you voted for the bitches and you consumed 'cheap gas' and enjoyed the rape&pillage of the world for 100 years.

If your still in the USA when they come, you will KNOW their PAIN.

Thu, 05/08/2014 - 10:00 | 4739528 dizzzave
dizzzave's picture

When it really comes down to it, if shit's fucked, you're fucked. No amount of gold or lead or non-hybrid seeds is going to change that.

Wed, 05/07/2014 - 21:43 | 4738251 eatthebanksters
eatthebanksters's picture

Even if you can touch it you may not own it....I can touch my balls, but I don't own them...

Wed, 05/07/2014 - 21:52 | 4738271 Global Hunter
Global Hunter's picture

so who owns your balls then? 

Debated whether I wanted to really post this question or find out the answer but thought to myself, what the fuck I am sure I am never going to ask that question ever again so what the hell.

Wed, 05/07/2014 - 21:53 | 4738275 Grande Tetons
Grande Tetons's picture

I think nutsack confiscation is way off in the distance. You should be OK. 

Wed, 05/07/2014 - 22:49 | 4738460 delacroix
delacroix's picture

they already got my foreskin

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