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.