Marc Faber Blasts "American Military Presence In Asia Is Completely Unacceptable"

Tyler Durden's picture

Submitted by Keith Hilden via Squawkonomics,

In our latest Squawkonomics interview with Marc Faber, we were told a story of a petulant and wincing state carrying a heavy burden and unwilling to release its full spectrum dominance view on its administration of the world in light of a recent economic fallback, a declining economic share of the global economy, and the very stewardship of the global reserve currency being in flux. The story did not have a clear ending, nor did the reign of the world come effortlessly into the hands of newly important states. Nor did it portend the future of frontier markets and developing countries that could very well benefit from a US with a declining share of global GDP. Perhaps overlooking a wide expanse of undeveloped frontier markets, a quote from Dune author Frank Herbert would be best. “There is no real ending. It’s just the place where you stop the story.”

Indeed, that however the reserve currency question is answered, and however US economic hegemony looks in 10 or 20 years, there is one inevitable variable that stays constant throughout the geopolitical and economic King of the Hill tug of war between global powers. As two or more tigers duel on a mountain for global financial supremacy, the continued development of the rest of the developing world goes on unabated. That is a guarantee.

Marc told Squawkonomics that the Western imposition of its its administrative view of the world was being met with Nation States with quite different ideas of how the world should be run. From border demarcations and enforcement, to administration of the global reserve currency and global commodity exchange hub shifting, these positions of power and privilege have been thrown up in the air due to hasty decisions and management. In doing so, there are the makings of a multipolar world created from the current schism of US economic hegemony- a process the US is looking to halt- or at least manage- so that the outcome is still favorable to US interests. Faber also calls out the US pivot to Asia as a “China's backyard” geopolitical move headed by the neocons of Washington as a misguided policy. He wonders aloud what they must be thinking to contemplate such a move, knowing the US would be equally feeling threatened if China set up a military base just outside Toronto or Tijuana.

And Faber is quite clear on his stance regarding America's pivot to Asia:

FABER: "I am not God, I am not here to judge who is right and who is wrong, but if I were China, if you look at geopolitics in Asia from a Chinese perspective, its completely unacceptable in the long run to have American military presence in Asia".


FABER: "As a large power like France and Britain and America, you might be able to push around small countries, but you can't push around a country that has twice the population of Europe and the United States, and has become a relatively modern state with military that is very powerful."


We felt the most prescient big picture comment Dr. Faber brought up was regarding declining US economic hegemony in the form of the US economy comprising a lower share of the global economy as a whole. This sparked a bone of contention with us, as we find domestic GDP posts in their current context to be less and less of a reliable indicator of real economic activity. In the meantime, however, we will use this increasingly outdated metric to demonstrate Dr. Faber's idea of ever declining share of US GDP to global markets. This is a trend that has been going on for at least 15 years, shown in the eye-popping decline of US contribution to global GDP over a decade's time.

Traditional economics through standard GDP prints every quarter always presents countries as horses on a never ending racetrack. Sometimes, a country's horse runs a bit slower to the finish line, but they all get there in the end right? Sounds like a nice way to end a fairy tale or a Hollywood movie where the underdog protagonist gets beat up only to rise up again, but that's not how real economies work. A far clearer picture of what is going on is a country's contribution to the world economy, and that's when numbers get potentially ugly and beyond what is considered polite discourse at a dinner party.

No American wants to envision the US economy declining against the world 32% over a 10 year period of 2001-2011 but that's precisely what has been happening. Noticed a bit of dilapidation around suburbs in Chicago, Detroit, and other cities of previously pulsing economic activity? That's what a 32% decline in your economic performance against other countries gets you. That money you were going to earn, or spend? That's gone off to Sao Paolo or Shanghai, where someone has outcompeted you. Perhaps on cost, perhaps on currency manipulation, perhaps on just plain get up and go spirit, but you've been had, and your future income has been extricated from you and given to someone who performs better than you.

This results in American output being about 32% less desirable or productive compared to the rest of the world. Call it the Hunger Games, or call it just a slap across the face.

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Chupacabra-322's picture

Hey Marc,

American Militarized Police in America is unacceptable.

Thought Processor's picture


And in my mind I hear Morgan Freeman saying:

"He's right, you know"

DoChenRollingBearing's picture

Hey, China have at it (IMO)!  It´s your backyard.

But, don´t be surprised if Japan responds with making its own nukes.

Don´t be surprised either if in a few years your new "pals" in Russia start liking you, well, not so much...


But, Marc Faber is right.  We are over-extended.  Bring them home.  Let Asians sort themselves out.

economics9698's picture

China can fuck over the tribe by issuing another currency backed by gold.  The tribe would be gone.  Kryptonite to Superman, Gold to tribe members.

SoberOne's picture

The world has gone insane. Sure hope some random positive turn of events happen soon.

economics9698's picture

How bad does China and Russia want the tribe to go away?  We shall see.

Anusocracy's picture

The world should be "run" without anybody running it.

The cause of most of its problems is the actions of those who wish to run it.

macholatte's picture


Wait a minute.......

The USA didn't start building bases all over the world just last month.

Temporalist's picture

It sounds like this was broadcast from the forest moon of Endor.

newbie vampire's picture

"The world has gone insane."

Primarily due to the politicians, Federal Reserve and the IRS. Instead of rewarding work, thrift and personal responsibility, we have bread and circuses. SNAPs and American Idol is not the answer.

We need a POTUS who understands middle class aspirations.  Jobs for everyone who wants to work.  For those who feel "certain" employment offerings are beneath their dignity, I would suggest they move to another country which rewards laziness.  And rewrite tax laws to penalized corporations who use tax loopholes to avoid paying their fair share of taxes.  Finally reduce national and local tax rates for everyone earning less than $30k. 

lasvegaspersona's picture

I'm positive there are 'jobs for everyone who wants to work'. The prevailing world wage is about $2 to5 per hour. Until the USA can adjust its wages...and it will be very painful...those jobs will be for 'everyone who wants to work' those wages.

For the USA to get back in the making stuff business the dollar must fall.

RafterManFMJ's picture

Sure hope some random positive turn of events happen soon.

Hope isn't a strategy.

Ying-Yang's picture

"you might be able to push around small countries"

You put your right hand in,
You put your right hand out,
You put your right hand in,
And you shake it all about,

You do the hokey pokey
and you turn yourself around
That what it's all about.

Pivot West and East.... Mosul falls to ISIS

Nouri Maliki said "vital areas" of the city had been seized; some 150,000 people are believed to have fled. Troops fled Mosul as hundreds of jihadists from the Islamic State in Iraq and the Levant (ISIS) overran it. The US has said ISIS threatens not just Iraq, but the entire region.

SoberOne's picture

Coordinated by the CIA?

Jack Burton's picture

Funny too! Just across the border inside Syria, the same Al-Qaeda Jihad movement is armed, trained and funded by the USA. Our good Al-Qaeda fights for freedom against the evil Assad, on the other side of the border, the same Al-Qaeda do not enjoy USA funding, arming and training. Bad Al-Qaeda. America does not have an Al-Qaeda problem, it has a problem gaining total control over the CIA created Al-Qaeda that fought so well against the USSR, but went off the reservation in the following decades. Once again the USA has found a firm alliance with Al-Qaeda very important for freedom spreading in Syria, in aid of USA and Israeli foreign policy goals. In Iraq, the sunni were paid money to stop fighting the US occupation, and this worked, now they have spent all that American money on arms and are coming back to reconquer parts of Iraq.

Does anyone really believe that we Americans should continue to support the CIA/NSA/Republican/Democrat foreign policy war mongering and playing with terrorists, and now playing with Ukraine's nazi movement. Our leaders are too stupid to rule the world, that have proved that over and over again, yet they keep using our tax money to try and rule the world.

How did the trillion dollars and thousands of soldiers lives in Iraq pay off, how did the Mission Accomplished come out in the end? Does any veteran of the Iraq war now realize what they put their lifes on the line for? How is that sacrifice working out? Did our masters make proper use of soldiers patriotism? Big questions, BUsh and Obama need to be held to account for their crimes. Even as Obama uses his nazi forces to bomb and shell towns in East Ukraine. It never ends. USA attacks on other peoples never ends.

blackbeardz's picture

" has a problem gaining total control over the CIA."   - is what you should have said.

curbjob's picture

Yup ... it's like the Sorcerers Apprentice, the US has funded violence around the globe and now they can't turn it off. Complexity wasn't in the manual.

shovelhead's picture

Anyone ever consider that the President's Daily Breifing is not an information appraisal but his marching orders from the CIA driven Shadow Govt.?

Just a random thought.

Thought Processor's picture



The above is most likely quite accurate.

Aussie V's picture

Couldn't have worded it better myself Jack.

What I find ironic is Obama met with our POTUS today and commended our Pollies on removing ALL arms from Australians and wished he could impose the same on the US.

The ironic part for me is that the US foreign policy for so long has been murdering innocent people around the world and when crazy or angry citizens start to shoot innocent people inside the US Obama is outraged!

What is that very accurate saying again???? "Those who live by the sword shall die by the sword."

I assume that saying works for countries as well as individuals!?

newbie vampire's picture

"Troops fled Mosul as hundreds of jihadists from the Islamic State in Iraq and the Levant (ISIS) overran it."

Isn't it somewhat coincidental just when the administraion said it would increase aid to the Syrian rebels ?

Wouldn't surprise anyone to know the ISIS is a beneficiary of the increased aid.

TeamDepends's picture

But the Latin children being dropped off at the border for day-care is not a problem.

Panafrican Funktron Robot's picture

Anything to distract from the actual problem.

WSMassiv's picture


Distract, divide, conqueor.

SilverIsKing's picture

The quality of the Mexican national soccer team will decline over time while the American team will improve by the same degree.

economics9698's picture

We need more basketball players from Haiti.

SilverIsKing's picture

But we don't need any more golfers from Kenya.

TeamDepends's picture

Sir, um, Barry has appropriated the Mulligans from the next several generations.

Goldilocks's picture

The Pretty Reckless - Going To Hell (Official Music Video) (4:24)

Kprime's picture

why are they bussing them to Arizona??  bus the little fuckers to DC

WillyGroper's picture

Yea, maybe put them on Thai shrimpers for 20 hr days so the US/UK can have cheap shrimp thru Aldi & Costco. Make'em earn their keep.

I'd be more concerned with this...

Or this...

medium giraffe's picture

OK in the middle east though.  Carry on...


Soul Glow's picture

And Africa, Eastern Europe, South America....

NOTaREALmerican's picture

He's not God?    Now what?

Kprime's picture

guess we will just have to rely on obama.


DaveyJones's picture

Hint: this is what empires do...especially as they start to lose it 

Rainman's picture

I reckon the goobermint's Common Core for Dummies should finish things off nicely.

Chupacabra-322's picture

@ DaveyJones,

They also print to infinity.

DaveyJones's picture

true that is. And it breeds more disrespect than the weapons. Oh wait, it is a weapon.

Canadian Dirtlump's picture

print money incessantly, increase taxes, curtail rights at home, over stretch the military and go the fuck out in a blaze of glory as things crash and blame an imaginary enemy in a transparent lie that is so naked that they are only lying to themselves.

crazytechnician's picture

For people who cannot create actual value , it is all they have.

goldhedge's picture

Fags from MPNET in 1..2..3..


Dr. Destructo's picture

So a militaristic foreign policy isn't working, so we need more military to make it work.

I guess I need to be an 'expert' with a degree from an Ivy League school to understand.

NoWayJose's picture

Please China - conquer the United States so you can take over our current and future unfunded debts, and re-install a free market economy and financial system...

NOTaREALmerican's picture

Re:  and re-install a free market economy and financial system

You mean like they have over there, without a central bank?

NoWayJose's picture

China is a last bastion of capitalism left on the planet.  Everywhere else is socialism or dictatorships (or a combination of those two)...

NOTaREALmerican's picture

Re:  China is a last bastion of capitalism left on the planet.

With or without the infinite Chinese fiat?