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Marc Faber: "Fed Will Destroy The World"
"Everything will collapse" is the consequence Gloom, Boom, & Doom's Marc Faber sees from the Fed's latest 'stimulus' (and the fallacy and misconception of how money-printing can help employment). In a wondrously clarifying interview on Bloomberg TV this morning, Faber explained why he was 'happy', since "the asset values of his holdings will go up" but as a responsible citizen he is worried because "the monetary policies of the US will destroy the world." It truly is class warfare under a veil of 'its good for you' as he notes: "the fallacy of monetary policy in the U.S. is to believe this money will go to the man on the street. It won't. It goes to the Mayfair economy of the well-to-do people and boosts asset prices of Warhols." Congratulations, Mr. Bernanke.
Must-watch (or read the transcript) - it is truly remarkable.
Faber on more Federal Reserve stimulus:
“It is difficult to tell what will happen. I happen to believe that eventually we will have a systemic crisis and everything will collapse. But the question is really between here and then. Will everything collapse with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election the next Fed chairman will also be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down. And I don't like bonds. I don't particularly like equities, but I think equities are a better space to be in than bonds.”
On what he will do with his portfolio in reaction to yesterday’s move:
“I own corporate bonds and I recently, as I wrote, I pulled some bonds from Kazakhstan because Kazakhstan economically is a much sounder country than the United States or any European country. But it is in small doses. I wouldn't put all of my money in corporate bonds. They have an equity character. I also own equities still in Asia and as I pointed out already four months ago for the first time in my life I bought equities in Portugal, Spain, Italy and France because they were unbelievably distressed. I think what people overlook today is they look at markets but they don't look at what happens within the market. In the last 12 to 18 months the U.S. has massively outperformed European markets, Asian markets with a few exceptions and now some markets are relatively depressed. I could argue the Chinese stock market is now relatively depressed. So the asset allocators may move some money in Chinese stocks and then they can rally 10% to 20%.”
“The fallacy of monetary policy in the U.S. is to believe this money will go to the man on the street. It won't. It goes to the Mayfair economy of the well-to-do people and boosts asset prices of Warhols…Very happy. Very good for the Fed. Congratulations, Mr. Bernanke. I’m happy. My asset values go up but as a responsible citizen I have to say the monetary policies of the U.S. will destroy the world.”
On whether there’s any credibility in the Federal Reserve trying to bring down the unemployment rate and improve the housing market:
“I think there is a huge misconception and fallacy that money printing can actually improve the rate of employment because the money flows down into the system. It goes first into the banking system and into financial institutions, into the pockets of well-to-do people. If you drop money into my pockets and you have at the same time increased government involvement in the economy and we have the government growing with its regulation and legislation that stifles economic development. I don't want to build a new business. But what I may do is look around the world, where are the distressed assets. So I will go and buy existing assets, takeovers. But takeovers don't add to employment. They destroy employment. Secondly, I would just like to mention one thing. This money printing business, they have been saying that for the last 15 years that bailing out LTCM were necessary. Then they say the NASDAQ collapsed after March of 2000. We need to create another bubble, print money. They created a gigantic credit bubble and the misery that we have today.”
On where gold prices are headed:
“I think that the trend for gold prices will be steady, but the trend for the dollar and other currencies will be down. In other words, in dollar terms the price of gold will trend higher. How high it will go, you have to call Mr. Bernanke and at the Fed, there are other people actually that make Mr. Bernanke look like a hawk. So they are going to print money. And they have done it for ages already and where has it led? To record high unemployment essentially since the Great Depression and structural unemployment. Unemployment goes among low paying jobs, not high paying jobs. So, you ought to own some gold, but don’t store it in the U.S. because the Fed will take it away from you one day.”
On whether he would buy property in the United States:
“Yes. Property prices in the south of the U.S. are very inexpensive compared to property prices around the world. The tragedy is that the people that were evicted from these homes have no access to credit. They have no money. They can’t buy them. So, with easy money by the Fed well-to-do people can buy these properties and then rent them out to the people that were kicked out of these homes. What a great achievement of the Fed. First they create the property bubble and destroy the wealth of poor people, then the poor people have to rent and the rents have been up over the last 12 months. What a great achievement. Thank you, Mr. Bernanke.”
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She swallows stimulus packages.
The chart that I like best is the one showing the employment rate of the population.
We are in a golden age.
Aprox. 40% of the people are not working. More people with leisure time.
Since 15% of the population is at or below the poverty line somthing will have to be done to make their lives better.
I got an idea ...
Actually, its Benny's idea.
Print money.
Give money to contractors to build NEW houses.
(It will give max impact to the GDP. It will employ the most people.)
Sell those houses to the 15% of the population that are below the poverty line.
Repossess the houses and repeat.
The Bernank's gonna buy up all the subprime generated by the FHA. Next step is for FHA to offer no money down 110% LTA mortgages to any mirror fogger out there. What could go wrong with that?
That U.S. inventory build up is surprising/ NOT!
10:00 USD Business Inventories (MoM) 0.8% 0.3% 0.1(Reuters) - Home Depot Inc, the world's largest home improvement chain, will close all seven of its big box stores and cut 850 jobs in China as the retailer changes its focus in the Chinese market to online and specialty stores and becomes the latest retailer to feel the chill from China's slowing economy.
Read more: http://www.businessinsider.com/home-depot-admits-defeat-in-china-2012-9#ixzz26SYb5Saa The PRC is feeling the heat too...not only Ben. Watch them pump another $800 Billion into their system...same for the RBA (Australia) which is feeling that same slowdown: RBA rate cuts on radar after Fed moves
Read more: http://www.smh.com.au/business/rba-rate-cuts-on-radar-after-fed-moves-20120914-25wo0.html#ixzz26SZ9XknV Can you say $200 oil ?Very simple question to the Fed - If you own 100 dollars of stock but need to own 1000 dollars of stock are you happy or sad when stocks go up -and this is the important point - due to money printing as opposed to improving economic growth? I think you are sad.
Since 90% of Americans are severly undersaved, they are actually "short" stocks. I do not think Joe sixpack is celebrating that his 25k 401k is up 2500 dollars. He is more worred that he is short huge vs what he needs to retire. The other 10% or excess savers are happy.
Also, since the 90% that are "short" savings have a very high propensity to spend get hurt vs the 10% that have excess savings have a much higher marginal propensity to spend, the weighted average effect on spending from artifically lifting stocks may be negative.
If I buy $20k of Apple stock at $700 a share and it goes to $1400. I now sit on $40k minus taxes and commissions if I sell. So really when all is said and done I probably have just over $30k. So I increased my "wealth" by $10k.
If I lose my job I'll burn through that $30k in nine months, if I pay all my bills and eat. After that I have no ability to pay for anything, and I won't own any stocks to see my "wealth" grow along with the market. I won't be able to pay for my house, so even if it increases in value, I can't take advantage of it.
Even if I made out big and bought Apple in 2009, I don't have enough money to retire if I lose my job right now.
Losing a job that pays $60k with no hope of landing a new one that can even pay half that, means I burn though all my "wealth" in a very short time.
If I did make $20k in the stock market, it wouldn't last very long when I am unemployed, in fact it could hurt my chances of getting more cash from the government. Better to take the $20k out now and buy a new car with the money. Enjoy my money instead of watching it slowly evaporate going toward living expenses.
THAT IS THE EXACT SCENARIO GOING THROUGH THE MIND OF EVERY MIDDLE CLASS AMERICAN. READ IT YOU CLUELESS MORON KRUGMAN.
Jobs provide a standard of living, NOT THE STOCK MARKET.
Nevermind the employment angle.
By the time AAPL doubles to $1400 and you're able to "cash in", the cost of everything you need to live has doubled as well.
There is NO free lunch and I wish these fucking day trading morons who claim to BENEFIT from a rising stock market would for once let simple MATH dictate over their constant GREED.
$40 billion / month in MBS purchases is NOT creating one single job. That number is as bogus as the claim it's QE3. It is not QE. The Fed is merely setting itself up to be a Bad Bank and taking toxic assets off the bank's balance sheets. The banks get ETF transfers of up to $40 billion per month and can do with the money whatever the fuck they want. They will most likely buy UST and sit on the income from that or buy equities. Nice gig for banks BUT certainly NO stimulus for the economy!
How did Bernanke come up with that number of FORTY BILLION? He's not explaining that part. Also not explained is if he will only buy $40,000,000,000 or $40,000,001,000 ?? What if one month he buys only $35 billion worth? Does he buy $45 billion worth the next month?
DO YOU PEOPLE SEE JUST HOW FUCKED UP AND BOGUS THIS WHOLE CHARADE IS? And we are supposed to trust these people and work our asses off to get paid with money that they have control over????
<<They will most likely buy UST...>>
Correction: "They will most likely buy UST and each other's stocks." Take a look at who owns WFC, BAC, C, and so on...they all own each other.
After that you get a nice unionized gubmint job and become a democrat!
MARC FABER IS THE MAN!!!!
"What a great achievement of the Fed. First they create the property bubble and destroy the wealth of poor people, then the poor people have to rent and the rents have been up over the last 12 months. What a great achievement. Thank you, Mr. Bernanke." – Marc Faber
Now it can be told. There is no such thing as central planning. The fiat money system was designed for one thing, central stealing. The men who came to America to form the Federal Reserve in 1913 were not civic minded public servants. Their idea was to begin to take a commission on the production and labor of others.
Because their control was central, their progeny, the men who came after them, used that concept of central control of the very commodity that Americans used for their work, their recreation, and their lives…namely the currency…to become obscenely wealthy and then to begin the complete control of nations and their political systems, now to include the beloved United States.
To call this endeavor “planning” is to use the word and the concept of these world class criminals.
PROGENY Mandatory Arab teaching. Good post J.R. :-)
The Norman conquest of Sicily was similar initially, total stealing from the Greeks; but they became good administrators and served their people. Something a banker seldom does except the MEdecis who became rulers of Florence.
These guys never built anything except a paper windmill that makes beggars out of people.
Central power comes in many sizes and shapes and serves different purposes.
on the bright side, we'll all be millionaires.
Ah come on people, AAPL , ORACLE, MSFT, GOOG have a 1.6 % of GDP in net cash combined, they will spend it quickly in wasteful project which will create employment... All the CFOs of the world are frantically approving corporate projects since yesteday night because Bernanke said he will destroy they don t, so they better spend on capex, any capex .....
Corporate Keynesianism forced by the Fed.
They will spend on CapEx as long as it can be written off 100% on the books.
* Bernanke said he will destroy their cash if they do not spend it. CHeck their cash balance in the next few quarters.
Well said Mr. Faber
But that is exactly the plan. Keep in mind... The Bernank, like Barry Soetoro, is a Useful Idiot, Empty Suit following orders from the real rulers of Amerika... the Fascist Oligarchs of Finance Capital...
When the criminal King Dimon sits on the board of the FRBNY and says the Banksters need more counterfeit fiat... print Ben Shalom, you bitch... Ben Shalom prints...
Jamie & Lloyd et al need more counterfeit fiat as cash flow to continue to kite $1.5 quadrillion in phoney derivatives that have no use in the real economy...
No Surplus Value Goes Unstolen
Faber means that since the days of the "philanthropist" Milken (euphemism for convicted felon, securities fraudster and root of the 1980s Savings & Loan crime wave)...
M&A are the finance capital looting system of Banksters counterfeiting phoney fiat to "buy," a euphemism for steal, and strip assets from the real, productive economy...
Jamie & Lloyd: Amerika's Shoe Shine Boys
Jamie & Lloyd et al, the crime wave of fraudsters inhabiting Wall Street and the City of London like so many cock roaches...
Produce nothing of value to the real economy except corruption and fraud...
If not for The Bernank and counterfeit fiat... Jamie & Lloyd would have had to get real jobs decades ago...
Gimmie a SHINE Jamie...
The rich will get richer, the people in the Free Shit Army will continue to get their free shit, and the people stuck in the middle (like me) will pay for it all!!
Fuck Bernake, fuck the welfare, food stamp getting Free Shit Army, and anyone else that benefits from the fruits of someone else's labor.
So stop fucking playing THEIR game!!!
You can already see where the new hot money is going.
FB up >5%
Zynga up > 5%
Grpn up >6%
There's your stimulous folks. There's your new Fed sponsored economy. How's that working out for YOU so far?
Fed just checked to congress RE: Fiscal Cliff.
The fed will do full out unsetrilized QE by purchasing distressed assets from private banks, and will perform sterilized QE via continuation of twist.
In a nutshell: "Fuck you Bernanke!"
He says thank you for himself and other well-to-do, but notes that it is punishing the poor and the middle class, which long term will destroy the world.
Yup.
I second the motion: Fuck you Ben Bernanke, Washington, and Wall Street!
MARC FABER FOR KING!!!
While the Feds actions may destroy the financial system it is unlikely they will destroy the world. The big issue now is what comes next. A return to a gold standard, which will keep the bankster parasites in control or a return to money issued by the government and the demise of the banksters.....(which has resulted in key economies such as America and Germany moving from bankruptcy to boom within 4 years in the past)...the time is coming for us to choose to remain serfs to the banksters or to get rid of them and create a prosperous stable future for us al.l
Destroying the currency is indeed destroying the world. People who cannot afford to live take to the streets. Civil unrest results in inability to run a business. Factions within every country will turn on each other and govt will resort to riot police and martial law to clear the people from the streets.
This destabilization globally (except for Iceland) is exactly what the Federal Reserve et al want. They are more than a central bank. If you do not believe in the NWO, the handful of very rich powerful men behind the banking industry, they you are not paying attention.
There is reason to conclude that lives will be lost in the hundreds of millions due to the policies which have led us here. Policies that have brought us here have been analyzed to death and predicted to do exactly that.
Once a country is destabilized, it is wide open for conquer from within, in key areas where people will have no choice but to turn to if they hope to feed their families and have shelter.
Marc Faber , are you ever right about anything ???
Earnings season starts in 4 weeks. Happy times.
Trying to find my baghdad bob gif.....
As if Faber is actually going to change anything? Look people, we're screwed in the long run. But if you dont get yours while you can, it's your own fault.
she's hot
i'm glad he mentioned that confiscation of gold WILL HAPPEN
So think twice before converting you life savings to gold
Listening to Bernanke talk up QE3's ability to boost the housing market and thus the US economy, I thought I'd lost my mind. Has he forgotten the housing bubble?
But not everyone at the Fed is a crazed amnesiac. Jeff Lacker, Richmond Fed Pres and lone dissenter of QE3, takes the Bernank down on camera right here:
https://vimeo.com/49466778
It boggles the mind that people haven't started killing the rich in big numbers!
America going Weimar
BURN DOWN THE HOUSE
Fed? You mean Wall Street.
Organ grinder meets his chimp