"You Want To Own Gold" Marc Faber Warns "Brexit Is The Excuse For QE4"

Tyler Durden's picture

“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” warned a vociferous Marc Faber said in a Bloomberg TV interview today from Hong Kong. 

"In that situation, you want to own some gold," he explained, carefully noting that central planners will be forced into this move because, despite all their extreme experimentation, "global growth has contracted, in other words, growth rates have been reduced and many countries are in recession already."

This has nothing to do with Brexit, stated the Gloom, Boom & Doom Report editor, "Brexit is actually not about an end of globalization. On the contrary, it’s about people that rebel against the arrogant elite in the financial centers."

Full Interview:

 

Excerpted Transcript...

On supporting "Leave" in the Brexit campaign...

Yes.  Well, first of all, I'm Swiss, so I'm the wrong person to ask, you see.  We have a constitution, and already in 1291, in other words, in the 13th century, we swore that we would not pay taxes to a foreign leader and we would never accept foreign judges, and that's basically what European countries have done.  They transferred their sovereignty to essentially unelected bureaucrats in Brussels. 

 

And I believe that countries function better if they're small countries.  I always believed the U.S. would be a better functioning economy if it would consist of say 50 different states.  There's just one federal government running the place.

On the stock market's rebound post-Brexit...

Basically, we became very oversold the day before yesterday, and now we are rebounding.  I don't think markets, by and large, will make new highs.  But you understand, we have to be very careful when we talk about markets because there's so many different markets.  So this year, for instance in dollar terms, Brazil us up 30 percent.  The S&P is still down.  Thailand is up close to 15 percent this year, Vietnam, 9 percent, Indonesia, the Philippines, 11 percent.  So depending on which market you're talking, the performance is very different.  The bond market over the last twelve months and this year has been very strong.  Gold share market, all the gold shares are up 100 percent or more over the last 6 months, so we have to look at different sectors and we'll have to look at different countries.

On Global growth...

 Well, global growth has contracted -- in other words, the growth rates have been reduced, and many countries are in recession already.  That has nothing at all to do with Brexit. 

 

The global economy has begun to slow down 18 months ago.  The U.S. economy began to slow down at the end of 2014.  That's why bonds have been so strong in 2015, because the bonds market knew the economy was weakening. 

On what happens next?

[A UK recession] is possible -- but it could be possible that it would be in recession without Brexit, in other words, if they had remained in the E.U.  Growth has slowed down everywhere and I'm telling you why.  Basically, the growth that we had post-2009 has been very artificial.  It's been driven by money printing by central bankers that lifted asset prices.  And when asset prices, stocks and bonds and real estate, goes up, there's the so-called trickle down effect.  And Brexit is actually not about an end of globalization.  Quite on the contrary.  It's about people that rebel against the arrogant elite in the financial centers. 

 

Because if you go to England, London is doing well.  The financial sector in London is doing well.  The asset economy is doing well.  But ordinary people aren't doing well.  It's the same in Hong Kong.  Why did we have demonstrations here?  The people that owned the assets, like you and me, were doing well, for people that work at Bloomberg.  But ordinary people, they're not doing well.  The cost of living have gone up.  Look at the rents and the rest.  So there is dissatisfaction with the system, and this is what the vote is about.  And I believe it would be better if the arrogant bureaucracy in Brussels would be contained and reduced in size.

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nibiru's picture

True.

"It is total tabloidization of financial markets. First, we saw it in politics, now we can clearly see it in FED's policy. Janet is here to just create this headline porn and markets are excited enough to carry on with 'new gospel' every time she opens her mouth.

It's ridiculous. She, by far can be the knight in white armour and rather would cut the rates down to NIRP just like Draghi and Kuroda - to bail out cronies than she is really interested in following logic. Anyways her increasing rates would push the economy into recession - it's just matter of time not 'if'.

http://independenttrader.org/was-the-last-euphoria-the-harbinger-of-rate-cut-and-qe-in-the-us.html"

Richard Chesler's picture

Marc faber? really?

Isn't this the clown who moved his family to crap-made-in-china?

Fuck you ahole and anything you have to say.

 

mary mary's picture

Thailand.  He worked for years at a European brokerage office in Hong Kong.  Really, read before you mouth off.

American Psycho's picture

My favorite part of all Faber interviews is when he laughs at the questions ask. 

abyssinian's picture

I thought we want to own stock!  Two days of dead cat bounce, even the cat is alive now! 

mary mary's picture

"A series of lower highs and lower lows".  Wait and see whether SPY and QQQ make new highs.  My guess is they won't.

back to basics's picture

They don't need an excuse to print money. Please stop quoting this man who has gotten just about everything wrong the last 10 years. 

boattrash's picture

...plus plenty of lead and cold blue steel, to protect those hard assets.

lasvegaspersona's picture

Sorry but 'cold blue' is out...matte stainlees or nickle is in...keep up.

boattrash's picture

...for people that are too lazy to take care of their weapons.

SgtShaftoe's picture

Arghhh.  Please people, paint your fucking battle rifles to match your natural terrain colors.  Krylon is cheap, flat browns and greens.  Break that silhouette.  There is very little black in nature unless you're in a burnt out area and it looks stupid, god forbid you have chrome or nickel. Black is like painting carrying a blaze orange weapon, nickel is like putting a blinking target on yourself.  Carb cleaner takes it right off if you ever want to get rid of it. 

Impress the people that matter.  Look like a professional even if you don't yet have the training and paint that damn ugly ass rifle. 

O C Sure's picture

 

 

Tyrants need no excuses for the supreme authority justly makes it so!

FreeShitter's picture

Marc, the tribe hasnt stopped and will never stop doing QE......It will be QE till WWIII.

Arthur Schopenhauer's picture

Doctor Victor Von Doom, better known as Doctor Doom...

JusticeTBuford's picture

Would 4 get us through to 01/20/17?

willwork4food's picture

Because right now the economy sucks!  Bring some more QE!

Aussie Battler's picture

CBs will keep looting the financial system till there are riots on the streets - closer than you think imo

Son of Captain Nemo's picture

Mark

QE4 to OO was inevitable with or without "BREXIT"!...

TheMayor's picture

I'll take my guns and ammo over your gold anyday.

Bang!  Now you gold is mine.

Get with reality, only the strong and prepared will survive.

Farmers are going to be shooting a lot of trespassers.

Erek's picture

Hey Fuckstick! You aren't a survivor and you aren't prepared very well either. Only those who can kill/have killed and are prepared to kill or be killed do not brag about it. You, with your big mouth will most likely be the first to go. Chickenshit!

 

TheMayor's picture

I'll take my guns and ammo over your gold anyday.

Bang!  Now you gold is mine.

Get with reality, only the strong and prepared will survive.

Farmers are going to be shooting a lot of trespassers.

But, gold is more tradeable in the current system.

Collectivism Killz's picture

Based on your statements and assumed value system, you would be a great nominee for Hillary's cabinet, fuck the world, I take what is mine! Just remember, bullets go both ways, and some of us have pretty deep body counts going into this mess. Fucktard.

Collectivism Killz's picture

Based on your statements and assumed value system, you would be a great nominee for Hillary's cabinet, fuck the world, I take what is mine! Just remember, bullets go both ways, and some of us have pretty deep body counts going into this mess. Fucktard.

ClowardPiven2016's picture

I didn't know it was one or the other? Perhaps that's because I'm not a dipshit.

I'll take both

mary mary's picture

How are you going to lure people with gold onto your farm so that you can shoot them?

brushhog's picture

Assuming a complete collapse of government, sure.  But what about the more pressing scenario of an even larger, more oppressive government? What happens when they get desperate and the taxes on your farm go up 300%? You'll wish you had some gold.

PS

Also noteworthy...Even during a collapse do not think you will just walk away from murder. The old west was full of guys who thought, without a government, they could just gun people down. Eventually we catch up to guys like that and they end up at the end of a rope.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Jun 29, 2016 9:20 PM

I own some GLD...

Felix da Kat's picture

The tyrannical elites are planning to use Brexit as the scapegoat for the failures that they themselves have brought about through corrupt leadership that puts forth corrupt policies. If the entire world financial system should begin collapsing, they can play the Brexit card (Don't blame me, blame the English commoners, it was they). The EU would have worked had they not been such inept dumbkopfs. Apparently they do not yet understand the irreconcilability of Islam with western culture. It is not racist to not want people who prefer sharia values to govern society as opposed to the current rule of law. People who refuse to acknowledge that fact are either naive and irresponsible or corrupt and serving ulterior motives. Either way, such leadership must be terminated. Let the process of worldwide de-globalization begin.

TheRideNeverEnds's picture

Reminds me of this.

https://youtu.be/ozdQm7-zD4M

Fabre is good at gathering assets and he's gotten lucky a few times with his calls but has been dead wrong on the vast majority of what he has ever 'predicted'.

He has not made his money trading, he's made it convincing other people to trade.

mary mary's picture

I have subscribed to many newsletters over the years.  I subscribe to Mark Faber.  I find Dr. Faber helpful.  Whatever he talks about, I watch.  When I trade, though, I trade using trend-following.  That seems to work best for me.  I haven't found anyone or anything that could help me "time the markets".  Elliott Waves don't help me.  Sentiment Indeces don't help me.  Newsletters don't help me.  So I just use keep-it-simple-stupid trend-following.  To each his own.

Spungo's picture

Marc is probably right. Now is a good time to start printing money. Just blame it on the UK.

Kefeer's picture

A little late; they already printed more Pounds and Euros in anticipation of a possible BREXIT and the Fed and other Central bankers will continue print money.  

 

Eventually the world will be cashless and the Banking Cabal/Police-state will usher in the last prophetic era according to The Word Of God Almighty..amen!!

 

Who on earth can really stop them?  Russia? China?  People?

mary mary's picture

They will print more.

I don't believe the world will become cashless.  Youl will ALWAYS be able to purchase things with silver and gold.

Yes.  Russia.  China.  People.

onmail1's picture

<-- Brexit is the excuse for :

A. Moar QE

B. Moar buybacks

C. for Chinese paper confiscation ; I mean cancellation of its US treasuries

http://www.zerohedge.com/news/2016-06-08/mervyn-kings-alarmist-warning-a...

RobM's picture

Lots of reasons to own gold. This is just the latest.

But also lots of ways to invest in gold, and not not all are equal!

This explains the best ways to go about it: https://www.ofwealth.com/important-special-gold-investment-report/#.V3UG...