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On QE99, Gold, & Global Growth Concerns - The Chart That Explains Marc Faber's Fears
While The IMF recognizes the gaping chasm between collapsing global growth expectations and market exuberance, they remain confident that US growth will save the world. This, Marc Faber explains to a wise Bloomberg TV panel, is why stocks around the world (and now in the US) are starting to weaken, "the recognition that global growth is not accelerating," as the narrative would like us all to believe, "but is slowing." Central Bank money-printing has enabled deficit-heavy fiscal policy and, Faber simplifies, "the larger the government, the less growth there will be from a less dynamic economy." Policy-makers have only one tool - money-printing, and QE99 is coming.
In true Keynesian hockey-stick style, each time a current year's growth expectations slide, the following year's expectations are ratcheted higher... and if stocks weaken into that 'ratcheting' then the central banks unleash more QE... As the following chart shows, the gap between the 'efficient' market and fundamental reality has never been wider and - as Faber implies - policy makers simply cannot allow that gap to be filled (and all that created wealth to once again evaporate)... with QE4EVA coming to an end, the market is forcing "someone"'s invisible hand to act - demanding moar money-printing or the Keynesians will once again be proved entirely wrong.
With all that hot money having flooded into stocks, art, and real estate; this week's record high inflows into bonds suggest commission-takers' worst nightmare "great rotation" is about to happen... or The Fed, ECB, BoJ, PBOC will re-open the spigots and print (defending their actions on the back of global growth slowing - a new mandate it would appear) - and up goes gold.
Marc Faber discusses global growth, gold, money printing, China, and inflation in this interview...
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I wouldn't be the least bit surprised if Faber wasn't wearing any pants or underwear during interviews like this and has a Thai girl or two waiting in the next room naked as well... I love that guy and his hearty laugh!
There wasn't a camera shot of what was happening UNDER that desk was there!!
He's as refreshing as the comforting country in which he lives. Can you tell that he's happy? Mai pon rai.
100 years of the dollar depreciating and now we're supposed to belive that it will be strong and have faith in it. Created by corrupt banksters, who in their right mind could ever believe this crap?
100 years? WTF have you been smoking?
OK a lot longer then.
The $ USD was after WWII. Reparations with Japan & Germany.
http://www.zerohedge.com/news/historic-demise-ever-shrinking-dollar-info...
So propper history is abated?
The Marshall Plan, after WW2 instituted USD domination. Any Keynesian Krugmanite will verify my comment.
Latitude 28 weeks thinks it knows history? lol
I'm talking to a "24 year old "CIA troll.
So much booze you're going cross eyed now. Yeah I'm CIA. Go look out yuor front window. There's a big black Ford out there watching your house.
CIAduh?
Your such a child. I love messing with you.
Open the pod door HAL.
I like being 24. Thank you.
You like being passive aggressive. You're just an algo.
I like being 12/12
I'm human
Don't you just love dealing with these guys (?) who don't know real money from used dental floss, but they think they do?
Latitude25
These two explanations below should help:
In 1944 came Bretton Woods: Dollar as World’s Reserve Currency. It means: United States would use the convertible financial system to trade at a tremendous profit with developing nations, expanding its industry and acquiring raw materials. It would use this surplus to send dollars to Europe, which would then be used to rebuild their economies, and make the United States the market for their products. This would allow the other industrialized nations to purchase products from the Third World, which reinforced the American role as the guarantor of stability.
http://en.wikipedia.org/wiki/Bretton_Woods_system#Dollar_shortages_and_the_Marshall_Plan
The international market gave the U.S. unprecedented freedom of action in pursuing its foreign affairs goals. A trade surplus made it easier to keep armies abroad and to invest outside the U.S., and because other nations could not sustain foreign deployments, the U.S. had the power to decide why, when and how to intervene in global crises. The dollar continued to function as a compass to guide the health of the world economy, and exporting to the U.S. became the primary economic goal of developing or redeveloping economies. This arrangement came to be referred to as the Pax Americana, in analogy to the Pax Britannica of the late 19th century and the Pax Romana of the first. (See Globalism)
http://en.wikipedia.org/wiki/Bretton_Woods_system#Cold_War
No problem with your info. I still stick with the dollars loss in value since 1913.
Hey Mr. Loony Toons.
The usd was used for currency during WW2 reparations. The Hague and "World Court" were formed.
The United Nastions was off-loaded the world court jurisdiction in the 60-70's.
Tell your mealy mouthed " History Professors" to give me a call.
Latitude25,
So, you will appreciate this quote:
“If you have asked an American in 1910 ‘what money is’ he would have shown you a gold coin. If you had shown him a dollar bill he would tell you, ‘this is not money; dollar is a bank-note. It can become worthless overnight’. Now, try to explain this concept to an American today as their source of information is misinformation and obscurity… and therein lies the problem of our monetary collapse”-- Keith Weiner, at “Monetary Metals”
100 years dollar propaganda has certainly worked.
ALGO
Latitude25 is an algo.
Looks like Wikipedia skipped past a couple of details in their quest to define the U.S's actions in the world economy. Little stuff like the U.S. actually cheating on the Bretton Woods agreement so they could fight wars in Korea and Vietnam until the French had enough and asked for conversion into gold which prompted Nixon to close the gold window. The U.S. essentially defaulted at that point but then continued to exponentially run trade deficits for the next 43 years or so as they forced the world to accept dollar through their petrodollars for protection scam with the Saudis. You know, little facts like that.
The U.S. had the power to decide when, why and how to intervene in global crisises because they outspent all the other countries combined to build the biggest war machine in the world, thanks to deficit spending and the MIC buying/threatening our elected officials. Of course the US started most of those wars but what the heck, why quibble over details like that?
"the dollar continued to function as a compass to guide the health of the world economy"? Who writes this shit, he's obviously a comic. You may want to consider a better source than Wikipedia in the future.
chubbar
I found your comment to be very dishonest.
First: I would expect that you are NOT like the other 318 million Americans that are largely race and class prejudiced, many of whom are jobless, under-educated enough to deny and do nothing about American war-mongering, who think sick and poor people “don’t deserve” help from public funds and everything is a hoax, are you?
Second: Wikipedia is a giant in information and sources. How can you tell?
In an effort to prop up the value of the dollar Nixon negotiated a deal with Saudi Arabia that in exchange for arms and protection they would denominate all future oil sales in U.S. dollars. Subsequently, the other OPEC countries agreed to similar deals thus ensuring a global demand for U.S. dollars and allowing the U.S. to export some of its inflation.
http://en.wikipedia.org/wiki/Petrodollar#Origin
Nixon's actions did not formally abolish the existing Bretton Woods system of international financial exchange, the suspension of one of its key components effectively rendered the Bretton Woods system inoperable.
http://en.wikipedia.org/wiki/Nixon_Shock
And here is a list, by Wikipedia, of US overthrow of foreign governments during the Eisenhower administration:
1953 Iranian coup d'état
1954 Guatemalan coup d'état
1958 Lebanon Crisis
1959 Tibetan uprising
1959/1961 Cuba, Bay of Pigs Invasion
And I could go on……
I like seeing the chart but is something missing? I see the 'Estimated GDP' lines. Where are the 'actual GDP' lines? Does the "Est." in some way express assumed? How accurate have the estimated numbers been?
You're joking? You know, just as well as I do, that Q-3 earnings are going to be FLAT at best.
The candy has been consumed.
Excuse me while I "fire up" my BB-Q.
Are you old enough to talk to?
"Marc, may I interrupt you and say something retarded in an annoying tone?"
We are completely screwed.
A psychopathic federal reserve inflating the currency because they actually *think* that it creates growth and smugly patting themselves on the back when the government manipulated data backs there expectant delusion.
Meanwhile the poor are reduced to socialist welfare rolls, the 'growth' in stocks is strictly from rampant buyback programs.
It means the system has created a brainwashed feedback loop like a snake eating it's own tail..
Then when mechanical and market forces are too much to bear and the whole house of derivative cards comes crashing down in January we can enjoy a banking freeze because well to default would be just *too* much to contemplate as it resets the elites contols.
Just can't have that can we.
They'll hold onto their little illusion of control even if they have to nuke the whole planet.
Faber is a total geezer, but well known as a super stud in the Bangkok red light district.
I doubt it. And Faber has survived and prospered for a long time.
Must be boring as fuck not having a sense of humor.
This shit, is laughable at best. These clowns are going to run back to their cubicles on Monday and close out their books before Q-3 earnings.
Downvote me all you want. I've NOTHING to gain. I'm just being honest, and telling you what my next move is.
Isn't that all you would ask from anyone?
I don't need "Jack all" from anyone. I know who my friends are.
You people are being naive. I'm making money because I'm honest.
FFS grow some NUTS people. It's so obvoius you're being taken advantage of.
I agree, the writing is on the wall that Q3 was not pretty. Lots of hints that sales were not what was hoped for, and given the current indicators, economies across the world are getting worse, not better, and that's without considering what ebola/ISIS/sell-off impacts there might be in Q4.
The entire American economy is being sacrificed for the banks and the people who own them.
It amazes me, how people live in such denial. Over and over people put off making decisions. Latitude25
Every day I think about how I can help people. I think about how I can build ideas.
These Latitude25 ALGOS really make me laugh.
This
Latitude25 doesn't exist.
I dare it to tell me where I bank!
You see? I tell the truth.
I am praying that men like Faber and Ron Paul will be around long enough to see this fraudulent system fail and for the fraudsters to be punished.
you wrote: "the larger the government, the less growth there will be from a less dynamic economy."
Not quite. First off, the phrase "Dynamic economy" really means, for all practical matters, that the nation and its workers are being dominated by the corporations, and they have no leverage.
However, the larger the government, the less democracy there is. As nation size increases, governmental size increases. Larger nations have more factions among the populace, meaning the populace is less united. A less united populace means that the people cannot unite to control their own government. That means the corporations have more control.
Small, western nations have more ability to fight back against the corporations and the "dynamic economy" they try to impose on all nations. Small western nations have this ability because they have a more unified culture. That unity allows them more control over their own government.
Germany has a STRONG economy because it has a unified culture and a parliamentarian governmental structure. Those two things increase democracy. With more democracy, the people are better able to stop the corporations from imposing a "dynamic economy" on the nation. The USA is a good example of such a "dynamic economy".
You may now return to your regularly scheduled pseudo-political thread.
40% of my earnings are being confiscated by the federal govt and they spend 50% of that on entitlement programs to buy the votes of the disgustingly overpopulated lazy incompetent proletariat parasite hordes with entitlement programs - I don't see
1. any deductions from my earnings/paychecks for "corporations"
2. any expenditures in the federal budget that give my confiscated earnings to "corporations" - only to socialist parasite entitlement tit sucking scum
Turn the page, the instructions are on the back, the small print indicates that we still give Castro $2 mill each year in aid.
It wouldn't surprise me if they didn't make him spend it on Monsanto's GMO sugar cane, or some such shit.
"$2 mill each year in aid"
Sheeeit, das lunch money. Disclosed and undisclosed, the tribal thorn gets waaaay more than any other furriners.
When govt loads the EBT cards, the money goes to Wal -Mart. When government does to war, the Banks loan the money to the government to pay General Dynamics, Boeing, Lockheed- Martin to make weapons
It just which part of the government subsidy pyramid you are talking about.
Your tax dollars always go directly to Uncle's interest payments to make those MOFO bankers obsecenly rich beyond words can describe. In other words, your beloved Uncle is nothing more than a debt serf, and you and your great grand kids' tax dollars are simply used as collaterals for Uncle's every fucking dollar expenditure. Do you get it? You are worse than a debt serf in reality.
I think the world of Jim Rickards, Jim Rogers, Peter Schiff, Marc Faber , Max Keiser, is~ fantastic~
I'm not putting these guys down. I Just trade their ideas every day, so I'm not surprised.
These little punk algo's irritate me. Latitude25
I'm looking for it's IP.
I own a few toys, and keep my mouth shut.
Too much sake for Yen Cross-dresser.
Long live Quince and the midsummer nigh'ts dream.
Marry our play is 'The most lamentable comedy and most cruel death of Pyramus and Thisbe'.
Didn't ZH used to have a "Saturday Night just come on down and fight with the Fight Club" thread?
Funny to see Faber getting pissed off when they keep interupting him
Still must try this one day!
Marc Faber Cocktail recipe:-
Chew fresh Peruvian cocoa leaves, after 10 minutes take two ecstasy pills, after one hour smoke some Laotian hillside marrijuana, finish off with a bottle of Petrus.
What I don't get.... I can buya kilo bar of Silver on ebay for AUD$770 - $790 (excluding postage)
But from Perth Mint I can buy it for AUD$685
Why the fuck would I buy silve/gold on ebay at a premium. Are people nuts??
http://www.perthmint.com.au/metalPrices.aspx0
http://www.ebay.com.au/sch/Silver-/39487/i.html?_nkw=1kg+silver
You are better off waiting for old people to die and go to their garrage sales....
I love Marc.
But he is really starting to look his age.
Yet he remains polite and constructive with all the children who persistently disallow him from completing his point. I think they need a spanking.
I think they only invite Marc on the show because he trash talks the global economy. He'll say all of the data showing China and Japan having major problems, and people enthusiastically listen. When Peter Schiff makes the same comments about the US economy and has numbers to back up his claims, they call him a conspiracy theorist. Nobody ever wants to admit the US is fucked. It's always some other country that is fucked. China is heading into recession, Japan is going into recession, Europe is still fucked, but that couldn't possibly happen in America.
<--- Noticed the Bloomberg reporters interupting Marc everytime he began to criticize the Government or the Federal Reserve.
QE can never work if all the money created goes into works of art etc. not because it is wrong but because the money is now locked into an item and no longer rotating around the economy.
So they print a trillion, pointless a trillion that equates to debt is thrn locked into items including stocks and shares that are static investment items and the money rotating slows once more.
The real problem is the trillion they create that now equates to debt grows relative to the size of the trading economy suffocating it as more is needed to be taken from this to support the increased level of debt.
THAT'S THE STAGNATION, PERSIST AND WATCH LIKE JAPAN THE DEBT ESCALATE AWAY THAT YOU HAVE NO HOPE IN HELL OF EVER BRINING IT UNDER CONTROL.
watched for like a few minutes and I just can't listen to these morons. Marc knows the inside scoop, but he's pragmatic not to reveal it on fascist TV, otherwise they'll not invite him back. All those Bloomberg morons drive me nuts!
Notice how they interrupt him before he can finish a single point.
Marc Faber - leader of Retard Banking Cartel
STOCK PRICES = PHANTOM ECONOMY
like getting paid without working
sothe "poor" and "wealthy" are coverd
the MIDDLE can eat shit and die.... and they are
Most big gold miners down now 80% in the 12 year gold bull market while gold quintupled. Don't even get me started on the juniors.
Ok...So it's only quadrupled now but if these miners are hemhorraging cash at $1225 while oil drops to $85 then it has to cost a fuck ton more than $1225 to get it out of the ground. Amazon sees it's profit margins crushed during the same period but does the opposite. What a joke. I'm glad I don't participate...but the real insult is a $100 bill costs 2 cents to make. Fuck me. This is not real and everything is going to find it's intrinsic value sooner or later.
Well, it does follow that printing money, inflation, QE,
whatever else the politcos come up with FAVORS THE POLITICOS!
I mean, really(!) who else do you think it would favor??? YOU??? LMAO
So you do enough of the above, and obviously it simply takes the wealth
( not I didn't say "money" LOL ) right out of the system. Simply
extrapolate the line and you get an end point for even this game...
The Bloomberg people should just shutup and let Fabor talk.
The same Gold and Silver mantra... always the same BS... and that's coming from a cowboy that has more than 50% in it.
And for the pessimists and doomers out there, what humanity needs is to stop fucking around with each other’s junk and concentrate in colonize other planets, back in time Europe was in a dead end until Columbus found another way to expand, humans are a pest that needs to expand, to grow, that is our freaking nature, and we have a whole universe to explore, what the fuck are we waiting for?
PIMCO no longer has any Gross.