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"It's A Tipping Point" Marc Faber Warns "There Are No Safe Assets Anymore"

Tyler Durden's picture




 

Markets have "reached some kind of a tipping point," warns Marc Faber in this brief Bloomberg TV interview. Simply put, he explains, "because of modern central banking and repeated interventions with monetary policy, in other words, with QE, all around the world by central banks - there is no safe asset anymore." The purchasing power of money is going down, and Faber "would rather focus on precious metals because they do not depend on the industrial demand as much as base metals or industrial commodities," as it's now "obvious that the Chinese economy is growing at nowhere near what the Ministry of Truth is publishing."

 

Faber explains more... "I have to laugh when someone like you tries to lecture me what creates prosperity"

 

Some key exceprts...

On what central banks hath wrought...

I think that because of modern central banking and repeated interventions with monetary policy, in other words, with QE, all around the world by central banks there is no safe asset anymore. When I grew up in the '50s it was safe to put your money in the bank on deposit. The yields were low, but it was safe.

 

But nowadays, you don't know what will happen next in terms of purchasing power of money. What we know is that it's going down.

On the idiocy of QE...

in my humble book of economics, wealth is being created through, essentially, a mixture of capital spending, and land and labor. And if these three production factors are used efficiently, it then creates a prosperous society, as America became prosperous from its humble beginnings in 1800, or thereabout, to the 1960s, '70s. But it's ludicrous to believe that you will create prosperity in a system by printing money. That is economic sophism at its best.

On the causes of iunequality...

unfortunately the money that was made in U.S. stocks wasn't distributed evenly. And we have precise statistics, by the way published by the Federal Reserve, who actually benefited from the stock market boom post-2009. This is not even one percent of the population. It's 0.01 percent. They took the bulk.

 

And the majority of Americans, roughly 50 percent, they don't own any shares anyway. And in other countries, 90 percent of the population do not own any shares. So the printing of money has a very limited impact on creating wealth.

On China's lies... and its commodity contagion...

I indicated on this program already a year ago, the Chinese economy was decelerating already then. It's just that the fund managers didn't want to accept it.

 

And now it's obvious that the Chinese economy is growing at nowhere near what the Ministry of Truth is publishing in China, but more likely either no growth at all or maybe around two percent, but no more than that.

 

So that has a huge impact on commodity prices, and in turn it has a huge impact on the economies of all the raw material producers around the world from Latin America, to Australasia, Russia, Middle East, Africa and so forth. And these countries then with falling commodity prices have less money to buy, also less money to buy American goods.

On Asian currency devaluation... and a Chinese economic collapse...

Yes. These countries just followed the example of what Mr. Draghi and Kuroda tried to achieve with lowering the value of their currencies, which is actually to create a depression in real incomes and a contraction of world GDP in dollar terms, and a contraction of world trade in dollar terms, which is of course negative for economic growth around the world.

 

Well, I mean, we have to put the achievements of China and also of President Xi in the context of what China was 20, 30 years ago, and what it is today. And it's a remarkable change. Now will China have a very serious setback? And don't forget, the U.S. after 1800 had numerous financial crises, and depressions, and the Civil War, and went through World War I, and through the depression years, and World War II and so forth. And the country continued to grow.

 

I think China is, from a cyclical point of view now, in a very serious downturn, serious. And from a secular point of view, I think there is still tremendous growth opportunity in China in the long run. But, as I said, cyclically I think they're going to have a tough time

On where to invest...

I would rather focus on precious metals, gold, silver, platinum because they do not depend on the industrial demand as much as base metals, as industrial commodities.

 

If I had to turn anywhere, where, as you say, the opportunity for large capital gains exists, and the downside risk is in my opinion, limited, it would be the mining sector, specifically precious metals, mining companies, in other words, gold shares.

 

I would buy mining stocks. I am not saying they will go up, but I think they will go down less than a lot of other shares. And by the way, if you ask me about relative value, I think emerging markets are not yet cheap, cheap, but I think the return expectation I would have over the next seven to 10 years by investing in emerging markets would be much higher than, say, in U.S. stocks. The U.S. market is overhyped and is expensive in terms of valuations from a historical perspective. Emerging markets are no longer terribly expensive.
 

 

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Wed, 09/02/2015 - 21:48 | 6502640 junction
junction's picture

Oh, Faber, you are such a crybaby!

Wed, 09/02/2015 - 21:54 | 6502662 JLO
JLO's picture

He uses $100 bills for powder puffs to wipe his tears I am sure.

Wed, 09/02/2015 - 22:21 | 6502781 TeamDepends
TeamDepends's picture

"I have to laugh when someone like you lectures me on what creates prosperity, when one of my ladyboy friends could pummel you, physically and intellectually."

Wed, 09/02/2015 - 22:31 | 6502837 TeethVillage88s
TeethVillage88s's picture

That is funny. This is a funny place often.

I don't know how serious you are on this...

But I'm sure there are ladyboys that can kick ass... I guess there is a movie that has been out for a while too. I don't think it is titillating, but more like a a drama or Midwest American Story. IMHO.

- We all have to work to keep the intellectual Skills up at some point in our drinking, whoring, partying, and obsessing about money and stocks. (not a quote from Animal House)

Wed, 09/02/2015 - 22:44 | 6502886 NoDebt
NoDebt's picture

But not a damned word about de-dollarization.  Anybody find that odd?  Me neither.

Wed, 09/02/2015 - 23:01 | 6502953 SafelyGraze
SafelyGraze's picture

mister faber knows very well that there are still true assets.

1. treasurys
2. stock indexes
3. etfs
4. corn, soybean, pig belly, and cattle futures
5. rental properties like apartment buildings
6. municipal bonds 
7. condominiums
8. iowa farmland  

opportunities for the retail investor abound.

hugs,
the retail investor clubs of america

Wed, 09/02/2015 - 23:12 | 6502987 TeethVillage88s
TeethVillage88s's picture

I SPIT on ur 1-8.

I guess I don't play at your level.

Here you buy a building, it doesn't sell for 10 years maybe. Maybe not, but the nice buildings are white elephants. Some of the big buildings have sold, but at what profit margin I can't guess... maybe not much.

You got $20-$40 K what have you got to invest in.

You got $500 K, why take it out of assets to invest in bear economy.

Are you saying a normal investor has choices, safe choices, in small cities, in civilized regions??

Thu, 09/03/2015 - 12:07 | 6504675 Down to Earth T...
Down to Earth Thinking's picture

and imagine those that sold some at 1900 only to wait until now and reload ? so both had the same holding but the timing was different ? and your point is ? and yes I was one of those people

 

remember that thing about blood in the streets and people being scared off ? in some ways we are there in metals and that was the entire point by the control freaks ! not much has changed except grander lies and illusions. 

Thu, 09/03/2015 - 06:41 | 6503505 LasVegasDave
LasVegasDave's picture

Hey asshole; you make your own opputunities in life.  If a "normal investor" doesnt have choices, he isnt looking hard enuf

Thu, 09/03/2015 - 06:52 | 6503517 bunnyswanson
bunnyswanson's picture

Scopalamine habit?  Margin Call -

https://www.youtube.com/watch?v=Jsbu7jD2upw (Deadhedge)

Wed, 09/02/2015 - 23:17 | 6503011 847328_3527
847328_3527's picture

Gold is not dependent on any currency. Given the massive printing we've seen and the fialure of many governments to use their land+capital+labor efficiently, PMs are still a good addition esp since they are so low right now....oversold.

Oil is almost a buy if it drops another 20% or so.

RE seems way overpriced. Due for a reversion and catch up to the other assets that have dropped imo. Check out Calagry and Australia; dropping like lead balloons; overbought plus propped up by incomprehensible government subsidies and tax credit freebies.

Thu, 09/03/2015 - 00:40 | 6503178 SilverRhino
SilverRhino's picture

No safe assets?  

I've NEVER seen anyone throw gold or silver coins out the window or into the trash.   

Thu, 09/03/2015 - 08:04 | 6503625 The_Virginian
The_Virginian's picture

Not disagreeing with you, in principle, but gold collapsed in 1988 because that was the only thing people had that hadn't already shit the bed. 

Thu, 09/03/2015 - 01:38 | 6503254 TripsTrading
TripsTrading's picture

Hi all,

My name is Edwin and I started my own website a year ago, specialized in Technical and Cyclical Analysis, see www.TripsTrading.com. 

I started this website mainly out of dissatisfaction with all the talking heads out there, to help the retail investor and hopefully, in time, to make it my dayjob (now, I'm still a teacher, also a great job).

I have spend the last ten years developing my strategy and I can tell you, it works (YTD 159%, Q1 44%, Q2 42% return, Q3 26% so far). 

If you would like to try it out, you can now do it for free, the 1st month. After that, I only ask $15 a month. I don’t want to place adds on the site so I would like to be compensated for my time and information. 

Take a look at my site and let me know if you have questions. And please don't react negative to this post, there's enough trouble out there that adds no value. 

 

Enjoy the day! 

Thu, 09/03/2015 - 02:32 | 6503300 UncleChopChop
UncleChopChop's picture

hey edwin, in the chance you are in earnest.. some advice. if your trading system *really* works, dont tell anyone but the barest minimum of people who will fund you. charge them a helluba lot more than $15 a month.

 

works or not, dont waste your breath trying to sell it here on zh. people will assume it's junk if you aren't following plan A as per above.

 

Thu, 09/03/2015 - 06:56 | 6503520 overmedicatedun...
overmedicatedundersexed's picture

this am the sun on the east coast of n america was blood red and large on the horizon..red sky in the morning investor take warning, or sumthin like that.

Thu, 09/03/2015 - 04:41 | 6503415 Nostradumbass
Nostradumbass's picture

 

This webpage is not available

 

ERR_NAME_NOT_RESOLVED
Thu, 09/03/2015 - 05:45 | 6503456 redd_green
redd_green's picture

Year do date: 159%.  Nice.  You should charge 16.00 a month. 

Thu, 09/03/2015 - 07:17 | 6503544 newbie vampire
newbie vampire's picture

Why don't you run a dating website for lady boys ?    You'll make more money there.

Wed, 09/02/2015 - 21:49 | 6502642 reader2010
reader2010's picture

The True Asset Is Slavery.

Wed, 09/02/2015 - 21:49 | 6502646 WTFRLY
WTFRLY's picture

A "people zoo" if you will.

Wed, 09/02/2015 - 21:49 | 6502643 WTFRLY
WTFRLY's picture

Finally, someone said it, but they won't believe him. He's already dismissed as a gold kook. You can't speak to these ponzi propagandists in logical patterns.

Wed, 09/02/2015 - 21:51 | 6502651 junction
junction's picture

Is it safe? clip from "Marathon Man"

https://www.youtube.com/watch?v=kzw1_2b-I7A

Wed, 09/02/2015 - 21:59 | 6502677 Yen Cross
Yen Cross's picture

 I agree with Mr. Faber.

 It's a great time to hold onto assets if you own them free and clear.( art is not going to continue to appreciate in these markets)

If you want to liquidate assets for their cash value, the reinvest in harder assets, then it's also a good time to do so.

Wed, 09/02/2015 - 23:20 | 6503027 European American
European American's picture

Tangible, sustainable assets, e.g. seeds, tools, water filters, guns, ammo, food, knives, chickens, garden, solar panels, gold, well, real estate, silver, wind turbine, more food, deep cell batteries, silver, more gold,  etc., etc.,

Thu, 09/03/2015 - 05:46 | 6503458 redd_green
redd_green's picture

No fertilizer?  Can't grow seeds to plants without turds.

Thu, 09/03/2015 - 09:37 | 6503972 BarbaricRelic
BarbaricRelic's picture

See: "Chickens". They produce chicken litter. Chicken litter = fertilizer. 

Thu, 09/03/2015 - 12:14 | 6504720 Down to Earth T...
Down to Earth Thinking's picture

organic fertilizer is easy to make yourself and yes chicken help !

Wed, 09/02/2015 - 21:59 | 6502678 papa_lazarou
papa_lazarou's picture

Oh, who cares about this crap?!

DEAN JONES is dead!!

Wed, 09/02/2015 - 22:12 | 6502748 gwar5
gwar5's picture

RIP Dean Jones. Good family memories going to drive-in movies. 

Wed, 09/02/2015 - 22:18 | 6502777 ebworthen
ebworthen's picture

Ditto, RIP Dean.  Many years and films of clean family entertainment. My Dad had a '67 Beetle when I was a kid and we watched those movies, it was of course nick-named "Herbie".

Wed, 09/02/2015 - 23:13 | 6502991 tarabel
tarabel's picture

 

 

They're not all Dean Jones-ed yet. I'm going to the Mesa 3-screener in Pueblo this week.

Wed, 09/02/2015 - 22:02 | 6502689 theFNG
theFNG's picture

"I would buy mining stocks.  I am not saying they will go up, but I think they will go down less than a lot of other shares."

P.S. Please consentrate your stock buying to the mining companies that I own.


Wed, 09/02/2015 - 22:03 | 6502698 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

All oil, mining, and resource sector investing is going to get much effin' worse, and fuckface Faber is starting to piss me off.

Thu, 09/03/2015 - 04:08 | 6503382 Ajax_USB_Port_R...
Ajax_USB_Port_Repair_Service_'s picture

Master of Universe you are not wrong!

Investing in mining stocks will take research work. Many of the mining stocks are cash poor and ready to go broke. Others are in politically unstable areas and could be nationalized overnight. Then, if you do find one that looks promising, the company might be cooking the books and still go broke. If you get in the right gold stocks, the returns could be much better than physical gold. Of course, the financial system has to be up and running to cash out your paper investment. LoL! Maybe you could show up at the mine and demand gold for paper like a futures contract.

A good place to start researching: http://www.miningfeeds.com/gold-mining-report-all-countries

 

Here's my very favorite cash poor gold stock in an unstable area. This is a loto play. Not an investment. You have been warned.

Banro Corporation Symbol:  BAA           http://www.marketwatch.com/investing/stock/BAA/charts?symb=BAA&countryco...                               

Thu, 09/03/2015 - 11:34 | 6504511 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

I really appreciate your response here, Ajax. You are adept at analytics and if I had money I would invest with you given your obvious skills. Please post more often around here, eh. Posts like yours advance my knowledge greatly. I came to Z/H to learn something every day. Thank you for helping me learn. I trust your judgement. cheers!!!

Wed, 09/02/2015 - 22:03 | 6502699 gwar5
gwar5's picture

Good to see Faber. He's 69 yo but looks about 80 there.

Wed, 09/02/2015 - 22:03 | 6502701 gwar5
gwar5's picture

Good to see Faber. He's 69 yo but looks about 80 there.

Wed, 09/02/2015 - 22:05 | 6502710 DirkDiggler11
DirkDiggler11's picture

Faber is forgetting about other physical assets, Lead in the form of ammunition, Firearms, Food, and Whiskey.

Throw in smokes and toilet paper If you are the bartering type...

Wed, 09/02/2015 - 22:27 | 6502823 Buster Cherry
Buster Cherry's picture

Smokes go bad quick.

I hate smoking, but my wife smokes after work. I told her I would not go to the store for her to buy the damn things, but one time I did and I bought a few extra packs so I wouldn't have to do it again and stashed them in a cabinet.

The day finally came a few months later and she asked me to get her some, so I pulled out a pack from the stash. She lit one and totally gagged. Asked where the fuck I got them from and I told her the story.

I guess you have to keep them frozen?

Wed, 09/02/2015 - 23:07 | 6502975 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

As a graduate of the George Burn's School of Smoking I would advise you to wrap the cigarette packs in a sealed plastic bag, and put them in the deep freezer for long term storage. Moreover, always tell your wife that you bought them 'last week' so she does not experience a placbo effect of staleness. There is power in suggestion.

Thu, 09/03/2015 - 07:20 | 6503548 GubbermintWorker
GubbermintWorker's picture

Works well for pot too :)

Wed, 09/02/2015 - 23:48 | 6503084 Fukushima Fricassee
Fukushima Fricassee's picture

Freeze them shits

Thu, 09/03/2015 - 03:02 | 6503328 August
August's picture

Humidor.

But it's still got a shelf life.  Drop in and ask a tobacconist what he thinks (if a tobacconist still exists in your town).

Thu, 09/03/2015 - 12:20 | 6504756 Down to Earth T...
Down to Earth Thinking's picture

or get a new woman ?

Fri, 09/04/2015 - 00:05 | 6507783 roddy6667
roddy6667's picture

I grew up on a tobacco farm in CT. Tobacco is easy to grow. If you can grow tomatoes, you can provide your own smokes. There are many books and materials on growing and curing tobacco. Start with Google.

Wed, 09/02/2015 - 22:57 | 6502935 Farqued Up
Farqued Up's picture

Beer and toilet paper, too.

Wed, 09/02/2015 - 22:13 | 6502731 ebworthen
ebworthen's picture

Classic, love his laugh.

His laugh says: 

"Yes, this is all an insane crap shoot, monkeys are flying out of people's butts, can't you dopes see it?  Are you blind, deaf, and dumb!?!?  You ask me, I tell you, then you lecture me!?"

The pretty guy is such a douchebag.

Wed, 09/02/2015 - 22:14 | 6502762 buttmint
buttmint's picture

Faber is doing quite well for himself being situated in Chiang Mai. Many "preppers" would do well to book a flight to Muang Tai (Kingdom of Thailand) and suss the place out.

The entire country does not use much in the way of money...baht...dinero. One can "live like kon Tai" for under $200USD per month. Yes---that is rent, food, transpo. Bring a good motorbike helmet and know how to operate a motorbike---with ease.

No whiners.

Faber at least practices what he preaches. One needs to relocate to Thailand---not an easy task by any means. Language and custom learning curve.

Grasp this: no road rage and Thailand is the most fecund place on earth for growing things. Steer clear of BKK and head to Mukdahan or Udon Thani and enjoy the fact that all your food comes to you within 10kms.

Kon Tai love it when you buy tong / gold. Silver is an American thing.

I wish I had a gold problem....

Thu, 09/03/2015 - 03:54 | 6503373 conscious being
conscious being's picture

Thanks buttmint. Now everyone will know.

Wed, 09/02/2015 - 22:19 | 6502782 lucky and good
lucky and good's picture

The words illusion and mirage are both very interesting and can conjure up strong images. Often when we look behind the curtain we find the products of sophisticated traders are highly leveraged and stack layers of risk upon the huge amount of risk that already exist. When we mix in the impact of derivatives and its sister "shadow-banking" the water gets really murky. 

The carry trade exploits small differences generally in a highly leveraged environment in the hope of banging out a profit. We sometimes have to wonder just how much the central banks consider this in their overall scheme of economic control. In the end when the dominoes known as "world currencies" come under pressure and begin to fall, the direction or how they fall will make a great deal of difference in the financial landscape we are left to face. The article below explores this important part of the economy.

 http://brucewilds.blogspot.com/2015/09/cross-border-money-flows-and-carry-trade.html

Wed, 09/02/2015 - 22:27 | 6502821 The Shape
The Shape's picture

This guy's had more tipping points than this site.

Wed, 09/02/2015 - 22:44 | 6502835 aaaaaa aaaaaa
aaaaaa aaaaaa's picture

trump did invest in the immovable asset israel.

Wed, 09/02/2015 - 22:33 | 6502843 MaxThrust
MaxThrust's picture

There are all types of assets as there is all types of currencies.

Presently the currencies if the world are pieces of fiat paper

After the meltdown, it will be barter currencies like gasoline, smokes, booze, food and women.

When the wars start, the currency will be the lives of young men. Only once they run out of young men will the wars stop, a barter economy will emerge and eventually a Gold standard, that will styfle further conflict.

 

Max

Wed, 09/02/2015 - 23:04 | 6502961 Farqued Up
Farqued Up's picture

Women? Shit, they are bartering us men, they have 90% of the wampum and 100% of the vaginas.

Max Thrust you are almost there, the thrust is good but go buy yourself a good gyroscope. :-)

Wed, 09/02/2015 - 22:35 | 6502857 drivenZ
drivenZ's picture

perma bear faber says the world is ending? I'm shocked. 

Wed, 09/02/2015 - 22:42 | 6502873 lasvegaspersona
lasvegaspersona's picture

I have to wonder what Marc sees in gold miners. Gold is great but in our current 'markets' the miners must hi-grade to survive. Those that do survive will need an even higher price as they then must deal with lower grade ores. If gold is part of a dramatic reset every country on the planet will invoke some kind of windfall profit law/tax and the sudden benefit will flow to them not to foreign devils who own shares of their future bank reserves. Only the government will be allowed to print money then.

Wed, 09/02/2015 - 22:42 | 6502876 TeethVillage88s
TeethVillage88s's picture

"Markets have "reached some kind of a tipping point," warns Marc Faber in this brief Bloomberg TV interview. Simply put, he explains, "because of modern central banking and repeated interventions with monetary policy, in other words, with QE, all around the world by central banks - there is no safe asset anymore."

- Well okay he goes further in his explanation, but really... "Some Kind of Tipping Point"???

WTF

He is a Technical Guy with lots of Feelings, Strong Feelings, which he might not want to explain, but which are very strong.

S/

As a home viewer on the computer... fuck what the hell can I do with a Marc Faber Statement... NOTHING.

Marc Faber maybe Correct and zero'd in on something, but I hav been fucked before, often, and by authority figures.

Zero Points for any Network that Interviews Marc Faber or any Internet Site that shows or prints Marc Faber.

I like the guy, but he is not an analyst. No one would call him an Analyst!!

Thu, 09/03/2015 - 04:04 | 6503377 conscious being
conscious being's picture

Ok, let's see how he's doing a year from now. Sept 3rd 2016. I like Mark. He's pretty much on the ball. He has made recomendations you could have profitted from, but you have to get out of the US-centric system. So, yeah it takes some work. A week, 10 days ago, he not only explained why the math for emerging market stock markets looked good, but specific markets to take a look at.

Wed, 09/02/2015 - 22:44 | 6502883 Goldilocks
Goldilocks's picture

USD = inverse economic prosperity exchange-traded fund

Wed, 09/02/2015 - 22:44 | 6502888 StagStopa
StagStopa's picture

Ladyboy  at your service,,,.

 

kik Cdroxi

 

Wed, 09/02/2015 - 22:46 | 6502892 .National Suici...
.National Suicide 1980's picture

No mention whatsoever of resource depletion. A cornucopian who thinks this can be fixed.

Wed, 09/02/2015 - 23:27 | 6503049 atomicwasted
atomicwasted's picture

So we need some population depletion or something to fix that?  You first!

Thu, 09/03/2015 - 01:52 | 6503266 jmcoombs
jmcoombs's picture

The UN's Agenda 21will fix resource depletion by eliminating all but 500 million people on earth. Go read it.

I only wonder who gets to be one of the surviving 500 million...........it doesn't tell you that....

Wed, 09/02/2015 - 22:47 | 6502898 TeethVillage88s
TeethVillage88s's picture

"...in my humble book of economics, wealth is being created through, essentially, a mixture of capital spending, and land and labor. And if these three production factors are used efficiently, it then creates a prosperous society, as America became prosperous from its humble beginnings in 1800, or thereabout, to the 1960s, '70s. But it's ludicrous to believe that you will create prosperity in a system by printing money. That is economic sophism at its best."

Yes, Agree.

Wed, 09/02/2015 - 22:50 | 6502906 TeethVillage88s
TeethVillage88s's picture

"...unfortunately the money that was made in U.S. stocks wasn't distributed evenly. And we have precise statistics, by the way published by the Federal Reserve, who actually benefited from the stock market boom post-2009. This is not even one percent of the population. It's 0.01 percent. They took the bulk."

- Good Statement

Wed, 09/02/2015 - 23:15 | 6503000 Element
Element's picture

 

 

"It's A Tipping Point" Marc Faber Warns "There Are No Safe Assets Anymore"

Not true Marc, you are over-stating the case enormously. (I'm surprised at you, I never took you for a doomer!  :D )

All commodities and all real assets, as opposed to paper, always retain some proportion of their market value and demand level, at all times, and never have to be sold unless the owner is an idiot, or got too far in debt to carry them.

The only thing at risk of total wipe out is paper, and contrary to popular belief, and deliberate bankster and trader mis-use of the word, the papers are liabilites, not assets.

As people will re-discover.

Wed, 09/02/2015 - 23:19 | 6503018 Guru1294
Guru1294's picture

... Here I am thinking what am I going to do with my mining portfolio down about 50-60%, and here he is recommending mining stocks... Though i have a large speculative position in these mining stocks, I also have a "safe amount" stored in the hard metals (aka silver) I'm tired of seeing gold struggling to do anything while the Vix is starting a new upward trend. For other metals investors in the same boat Im sure you share the same feeling... This manipulation will end soon, all it will take is for the fed and wallstreet to be overwhelmed with the dumping of bonds, and the sea of trillions of USD preparing to return back to american shores. China, Russia and all em are soon going to step up their game and oust the US dollar. We shall see what September 10 - 31st have in store for us. maybe this upcoming financial crisis is the final blow to the petrodollar, Im all set if it is. If it isnt then all i can hope for is my miners dont go bankrupt should gold go lower... its been a paitent waiting game... 

Thu, 09/03/2015 - 04:17 | 6503384 conscious being
conscious being's picture

The USA needed last weeks dead cat bounce and with this 4-day victory holiday, so did the Chinese. By tuesday, it could be back to the meltdown.

Wed, 09/02/2015 - 23:26 | 6503048 JD59
JD59's picture

Buy physical metals. Steel, brass, lead, copper, gold & silver. And take full delivery!

Thu, 09/03/2015 - 03:16 | 6503338 Lookout Mountain
Lookout Mountain's picture

Cardboard for recycling. Got my garage full of some that I picked up last year for $140 a ton. Easily can go to $200 per ton in a year. Shoot, I've proably got 4 or 5 tons. You do the math but it's a sure winner. Can't park my car anymore, but when you're making this kind of money, who cares?

Wed, 09/02/2015 - 23:39 | 6503064 Ms No
Ms No's picture

One can see all kinds of opportunities down the road, assuming we survive, when excess supply is used up and all kinds of producers of all kinds of real things have gone under.  Until then I see nothing but Shemitah, last of the blood moon tetrad (Sept 28 Jewish feast day and all blood moons were on similar holidays), overpriced assets, market collapse and war.  Good luck with that.

Thu, 09/03/2015 - 06:17 | 6503485 Wahooo
Wahooo's picture

Jewish blood moons, eh? Which century are you living in again?

Wed, 09/02/2015 - 23:39 | 6503070 jcdenton
jcdenton's picture

I love Faber to death. But, every time he speaks, he reminds me of that German officer Eastwood gets drunk in Kelly's Heroes ..

"The banc!"

 

Thu, 09/03/2015 - 07:46 | 6503595 Slowdrip
Slowdrip's picture

That's good.....

Wed, 09/02/2015 - 23:57 | 6503104 I am a Man I am...
I am a Man I am Forty's picture

why the hell would you buy anything that you didn't think would go up, mining shares are for suckers, by gold or by silver, but mining companis suck and they cap the upside by locking in prices

Thu, 09/03/2015 - 00:19 | 6503145 fowlerja
fowlerja's picture

Marc...you need to spruce your picture up..you look old and weather beaten down...pink tie does help either...

Thu, 09/03/2015 - 01:47 | 6503264 Bunga Bunga
Bunga Bunga's picture

There is a safe asset, Faber is just old school.

Thu, 09/03/2015 - 01:57 | 6503273 Aussiekiwi
Aussiekiwi's picture

He is correct about Gold mining shares, in Politically safe countries, in companies with no debt, cash in the bank and low AISC.

Thu, 09/03/2015 - 02:05 | 6503277 Magooo
Magooo's picture

I wonder how many little Thai hooker girls Mark has on the payroll up there in Chiangmai.

Thu, 09/03/2015 - 02:39 | 6503308 MrNoItAll
MrNoItAll's picture

Nothing here that I didn't already know.  Preaching to the choir?  What he doesn't mention is that behind it all is severe resource depletion and a price for oil that is too stiff to handle for too long, and a planet that has been severely abused to the point of turning it into a cesspool for human waste and toxins.  In the meantime, human population just keeps adding hundreds of millions of new "consumers" on a regular basis.  Something's gotta give.

Thu, 09/03/2015 - 04:19 | 6503395 Element
Element's picture

"severe resource depletion"

Utter rubbish, if you think that, you have no clue at all. This planet is lousy with resources, many are totally untouched still, and some are entirely and perpetually renewable.

Fri, 09/04/2015 - 02:23 | 6507928 MrNoItAll
MrNoItAll's picture

You're a moron if you believe that.

Thu, 09/03/2015 - 02:46 | 6503313 carneades_jazz_hands
carneades_jazz_hands's picture

There really are two types of "currency" in the US, the dollar and equities.  The well connected and well to do, transact in and with equities.  That's the currency of the realm, of the elite; and that's why the Fed has done all it has for Equities at the expense of the "Real Economy" and the Dollar.  Alas, even the Fed's power has some limit.

And I think Mr. Faber points out the conundrum 99% of the people outside of this venue don't realize they are facing, but we all are.  With all the new risk built up and added over the past seven years, market participants really now have only two choices.  They can either get in those "investments" they are willing to hunker down in, to ride the coming storm out.  Those are the physical things. 

Or, they can get active, much more active, in their risk management activity, effectively becoming traders.  For the vast majority of passive investors, that would be a bad decision.  They don't know what they're doing.  But for the more informed minority, they might have a chance, if they have a strategy and a plan of execution.  

With the Banks being forced from many of their former market-making and dealing roles, it has opened up a lot more risk-taking opportunities for all the rest at a most propitious time.    It has been somewhat surprising, many of the HF's have been loathe to pick up that 'risk-taking' slack.  But, they can't seem to function without their old Broker-Dealer/Banker networks.

It's a shame the regulators are looking the other way at the HFT front runners and spoofers. Their liquidity taking role will only serve to exacerbate the already brittle current conditions.  

 

Thu, 09/03/2015 - 03:12 | 6503337 Batman11
Batman11's picture

Remember the days before 2008, before Central Banks had to try and get the world economy going again.

The "wealth creators" were the ones responsible for the boom times.

Where are the “wealth creators” now?

1) Did they all die?

2) When the going got tough did they retire to their luxury yachts waiting for someone else to sort out the mess?

3) Were they abducted by aliens?

Answers on a postcard to:

Our policymakers, BIS, Switzerland

 

Thu, 09/03/2015 - 05:10 | 6503435 buzzsaw99
buzzsaw99's picture

The maggot doth protest too much, methinks.

Thu, 09/03/2015 - 08:09 | 6503632 brushhog
brushhog's picture

I am now completely out of the stock market I don't think I will ever go back. There are better investments I have found. The best investments available are goods that allow me to be self reliant and less dependant on money altogether. Good land with cheap property taxes tops the list. "Good land" means good soil from a farmers perspective though the things that make land "good" from this perspective often have no bearing on it's being "good" from a modern, bubble economy, real estate perspective so this good land can still be had cheap. Equipment and tools to work the land, good livestock, PERSONAL KNOWLEDGE, storage for goods and equipment are all solid second tier inestments and finally, large quantity fuel storage, solar panels, gold, and dry goods make up my tertiary investments.

Invest in your personal ability to produce real goods that people need. Sitting on your ass at some bs job and looking at your " virtual portfolio"  on a screen is an artifiial investment strategy...in fact it is no investment strategy at all. It is complete surrender.

Thu, 09/03/2015 - 09:04 | 6503821 0cool
0cool's picture

In 2009, Faber predicted with full confidence that the Federal Reserve's policy of keeping interest rates near zero would lead to hyperinflation approaching levels seen in Zimbabwe.
-----------------

Hard to take this man seriously anymore.

Thu, 09/03/2015 - 11:57 | 6504268 A is A
A is A's picture

Why do people like you say dumb shit like this all the time? People attacking others for their prediction of the end of the show when no one has seen the end of the show yet. Utter stupidity...

It's like making fun of someone for how wrong they were about saying a plane they are on is going to crash when they haven't even landed yet. 

Thu, 09/03/2015 - 10:07 | 6504109 jazz571027
jazz571027's picture

Bloomberg talking heads: "being the agent of our viewers"

Geezus - does this male model looking ass really beleive this nonsense?

Are 'the people' writing the text on his telepromter - what an arogant, foolish tool...

Thu, 09/03/2015 - 15:35 | 6505758 Md4
Md4's picture

The U.S. market is overhyped and is expensive in terms of valuations from a historical perspective. Emerging markets are no longer terribly expensive."

No...but they are extraordinarily risky.

The U.S. "market" is for loons, racketeers, and reckless risk takers. As long as it's THEIR carcasses in the sling (no pass-through losses to taxpayers or bailouts this time), I couldn't give a damn about it.

What Faber, and the rest are NOT seeing is the risk of powerful, and difficult-to-direct social change coming. We're also talking about consequences dealt to those 0.01% and others that brought us here as well. A great many of the world's masses are ALWAYS left out, and my sense is, this time, they've had it.

Neither Faber, nor many other pundits are touching on this...yet.

Still, anyone who thinks this is just going to be another crash 'n recover the same shit cycle, I think, is going to be in for one helluva surprise.

And if not, then the world's "ordinary Joes" need not ever bitch about unfair
play again; they had their chance...

m

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