This page has been archived and commenting is disabled.
Marc Faber: On Operation Twist, The Dollar, Gold, And The Greeks
In his inimitable manner, Marc Faber describes to ThomsonReuters why it is time for Greece to leave the common currency, claim bankruptcy, and allow its citizens to live decently even if European leaders (and bankers) have to suffer. Furthermore, he reflects on how the stock market sell-off indicates real concerns about the global economy and in an unusual moment for the author of the Gloom, Boom, and Doom report, believes the Fed was right (but only in so much as they limited the scope of Operation Twist).
Part 1. Choice Quotes include:
You don't need the Fed to tell you that something is wrong.
...at least this time around, Mr. Bernanke did the right thing [...and...] what they said yesterday is better than what they've said for the last 12 years.
...if the S&P drops to around 900-950, we'll get QE3 for sure...
I'm not selling my gold because I think in the long run, they will print money.
Click Image for Video (no embed available)
Part 2. Outstanding perspectives include:
I don't know anyone who owns Greek bonds. But who owns them? The ECB and European banks.
The banks, the problem is that they're not run as banks where they have a fiduciary duty...They take the capital and go and gamble left, right and center.
They should default.
The Greek people in Greece, the only way for them to survive economically, half way decently is to leave the EU.
...countries like Greece and probably Portugal will leave the EU, or the strong countries like Germany will leave the EU and then there'll be dual currencies,
Click Image for Video (no embed available)
»
- 38443 reads
- Printer-friendly version
- Send to friend
- advertisements -
...a medal to pin on Dr Fabers chest ...meanwhile Krugman got a Nobel, i think for the Nobel Peace of Shit Prize
It seems that the CME's constant raising of margin requirments for Gold / Silver etc. must have a purpose.
The purpose it would seem to me, would be to drive speculators out of the metal, while also helping the banksters to cover their naked shorts (I'm theorizing here and am looking for some help).
Isn't it true that everytime that margins are raised, that we come to a more realistic/fair value for the price of the physical? Eventually if there were 1:1 (zero leverage) in gold, then wouldn't that be the point that it goes parabolic - once the FED embarks on their next money printing scheme ? The CME could do nothing else at that point, once they've squeezed all the leverage out.
I'd love to hear some more on what CME margin hikes mean for the long term for the metal.
I believe that the margins hikes will lose their efficacy at some point. This would leave TPBT with less ability to control the market and fewer opportunities to profit from "planned" volatility. Therefore I would expect other "tools" (I wish I knew what was in the toolbox) to be employed by TPTB.
On the other hand TPTB might just be on the gold train at that point, and we get to tag along. This is my end-scenario prediction. All we have to do is hang on to our stacks until that day arrives.
It's really simple... If we go to zero leverage then we have a gold standard. Gold/Silver then becomes a store of value. Right now we have an oil standard, that is not really working out for the world.
+1 oil standard
There is a huge difference between the "EU" (European Union) and the eurozone (countries using the euro as a common currency). Greece will not "leave the EU", even if they leave the eurozone. The UK, Denmark and other countries have kept their currencies, are members of the EU, and Greece, if it returns to the drachma, would remain a member of the EU too.
The margin increases for PMs makes me laugh.
When the tech bubble was in full swing all Greenspan had to do was raise margin requirements on stocks. But, no, he wouldn't. "Wasn't necessary".
When the housing bubble was raging, changes to the size of downpayments or mortgage rates or % of gross income to housing costs would have stopped the bubble. But 'no one' saw the bubble. Besides the USA was going to be an "ownership society".
No problem seeing a PM "bubble". No problem finding the tools to keep this "bubble" deflated. Can't have an "honest money society".
This "bubble" is different than all the others. That's a fact. Why is that?
"This "bubble" is different than all the others. That's a fact. Why is that?"
Cue GATA...
http://www.gata.org/node/7997
I like Faber. A lot! He has a rounded view of markets and economies. Well educated and he knows the score.To all you jerks who pick on his accent I would just say this: Go to a foreign country and talk about economic matters in their language just once and see how you do. Assholes.
Haha! I do it regularly; perhaps that's why the accent never registered for me. The US is huge, maybe too big, because its vastness seems to prevent so many from leaving it and realizing that the world is so much bigger. I had a similar impression traveling across China a couple months ago.
Let's twist again, like we did last year ?
Ah I love boozing Mark, he is, as always, spot on, on both booze and the world economy!
Monday, Tuesday, Wednesday......BOOOOOM!!!!!!
Fab er is the best and has been the most accuaret so far of anyone
He called the march 2009 bo0lttom almost to the day
he then said stocks are better than cash and hae was correct
he then called this correction a little early but he still called it
He thought they would print straight away butg he was wromg there but I AM SURE they will print m ore at some point
as soon as we get wind of that , that will be the time to buy more PMS
Bob Chapman is the most accurate
an abbreviated issue:
http://theinternationalforecaster.com/International_Forecaster_Weekly/Hi...
that's because he's been known to use the cut and paste method of journalism though he appears to have lost his copy of the Chicago Manual of Style
http://www.zerohedge.com/article/ron-paul-goes-after-secs-foia-exclusivi...
http://theinternationalforecaster.com/International_Forecaster_Weekly/Go...
compare and contrast the excerpt that begins as follows (and make note of the date of publication):
Basia, "Bob Chapman is the most accurate" ..forcaster?
(ahem!)
on 10th Sept Mr Chapmans weekly missive was titled, "The Fed has plenty of Tricks Up its Sleeve". Like most crony journalists in this utterly corrupt and long past its sell-by-date Western World Chapman billed Benny as a magician about to pull rabbits out of hats, telepathically guess cards and coloured flowers out of his arse. Instead the reality was Benny was wheeled out onto stage in the most drab gray suit almost comatose and dribbled something inanely down his chin about "rolling over old debt". I'd hardly call Chapman an "accurate forecaster" based on that week. Would you?
Next week on 14th Sept Mr Chapman spent much time saying Gold was going to $2,000 and Silver easily to $50. He jibbered on (and on) it was the only sane investment on the planet. As you now know Bennys' drab pitifully weak performance and a major volume sell-off (by who we can only imagine?!) combined to kick both PM investments in the balls and Silver collapsed 30% in 2 days.
I'd hardly call either weeks Newsletters "accurate" or even remotely good forecasters of what lied ahead. Would you??
This from probably Australia's worse financial commentators.. The Age where you will find perenial economic moron Pascoe sprouting ignorance, among others.
But it is a clear demonstration these main stream 'financial' commentators know very little more than the man on the street. And when it comes to commodities and precious metals they know and understand next to nothing. They are left reguritating other peoples words or with Pascoe just sprouting pretty ignorant nonsense.
The article itself scarcely addresses the headline they give it.
Gold bubble burstshttp://www.theage.com.au/business/markets/gold-bubble-bursts-20110924-1k...
...
.
.
http://english.aljazeera.net/programmes/meltdown/2011/09/201191410551861...
.
The men who crashed the world
The first of a four-part investigation into a world of greed and recklessness that led to financial collapse.
Meltdown Last Modified: 21 Sep 2011 09:26
Gonzalo Lira thinks QE-infinity will come, because Bernanke is a deflation-phobe.
http://gonzalolira.blogspot.com/2011/09/forget-goldwhat-matters-is-copper.html
Marc Faber and Jim Rogers have more credibility than all of the ivy leaguers who are steadfastly pushing the US economy off a cliff. There has never been a 'bail-out' of the people because they are redundant. Everything the gov't economists have done in the last five years has been to keep the banks solvent, or should I say appear to be solvent, and its all failing at our feet. So what is the answer? Yeah, print more money. No matter the eventual cost to every person who has worked hard and is trying to save as a means of protection against the tide.
"What is the answer?"
For "the eventual cost to every person who has worked hard and is trying to save.."
Well the Fed who prints and the politicians who spend and those ivy leaguers driving the economy off a cliff have one source of income, and one only. It's those same people trying to save. It's called taxation.
Taxing the people and small businesses of America is the only real source of Govt income for all the parasties, bankrupt banking bailout drama Queens and crony businesses across the USA. Govt is also the only source of monopoly power on money The Fed has. Maybe when the people wake up they'll realise their voting system, like everything else, is rigged and hopeless. And the only way to save is to cut their expenditure to the Govt which is afterall the most expensive, corrupt, criminal, dumb and murderous institution ever devised in history.
So stop playing the innocent 'victim' while you're not brave enough to stand up and endorse with your taxes the continuance of this thug called the State.
Stop Paying Your Taxes and this entire shitbang collapses in bankruptcy... every last brick of that toilet in DC, Westminster and Brussels... and every shithed ivy league parasite and welfare spounger that lives off it your taxes.
When YOU wake up and stop paying your taxes that's the day we start the clean up of parasites from society. Stop playing victim, and start taking responsibility for what's going on
Zero Tax = Zero Govt
And when the sheeple of the USuckAss stop paying their war-and-bank-taxes, then they can start washing the blood of a million Iraqis and Afghanis off their hands.. er, hooves. Good principle, and I stopped paying a dozen or more years ago; but for the bloated masses, I'll bet on 'Ain't gonna happen'. And also a few shares of 'We'll see Alex Jones' FEMA prisons before the sheeple stop paying their taxes and continuing their material support for the wars'.
The government is manipulating the price of gold down in order for those holding paper to get rid of their shorts (eg. JPM, hedge funds and others). When gold reaches its lowest level to achieve the goverment's end, then the price will be capped. This will be the new "spot."
The government will then make it illegal for the public to hold gold, and will line all us dudes up to buy it back at the new spot. Or, they will confiscate it (probably its preference and certainly more fun for the guys in blue)
Once the government holds the gold, a fractional gold standard will go into effect and join a basket of currencies for a new reserve.
Trust me!!!
at that point watch out for uncivil unrest.
The government doesn't need to confiscate gold. Much easier to 50% tax gold sales.
uh huh. Sounds like some 'under the table' transactions will be taking place to me.
I do not trust you!! You don't understand the free market. Suppose they do issue a confiscation edict.....what do you think will happen? There are many of us who know why we've bought gold in the first place. Do you really think we're gonna just meekly turn the stuff in because some asshole comes on TV and tells us to? Only the stupidest 1-10% will turn it in. The gold market will simply be thrust 'underground'......like illegal drugs are now. Why are pot, hash, coke, smack, etc so expensive? Most of the expense is due to the illegality of the substance. If they make gold 'illegal', those of us who own it will become the 'drug dealers' of the money world.......and the substance [gold] price will be jacked up accordingly.....like WAY up. Put that in your hash pipe and smoke it.....then think about it.......
Jim Rickards has said that he thinks the path to salvation for the USD will be a return to a fractional gold standard (40% as per historical implementation); upon the premise that there is nearly 16K tons of gold held by, or in trust by, the US gov (military possession), 'owned' by the Treasury, other countries, and the IMF, in order for that gold to account for 40% of the dollars in circulation, the value of gold would have to rise to US$3000/oz--as of last December and without the issuance of any more fiat. Rickards acknowledged that the reality of more debt and monetization is imminent, and so gold may need to rise to $7000+ in order to ressurrect the fractional standard. He says that Bernanke seems to feel that he has, more or less, an effective 'dial' tool for inflation, and that BB unofficially plans to erode the US debt through inflation; Rickards claimed that while BB publicly espouses a 2% inflation target, he privately seeks 4%. Rickards then warns that inflation doesn't actually work as a mechanical dial, and while 2% may be managable, it's entirely possible that aiming for 4% may bring 12%. http://vimeo.com/18160394
ShadowStats has this year's US inflation at 7%. http://www.shadowstats.com/
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/24_G...
.
Gerald Celente:Saturday, September 24, 2011
Despite all the media reporting that QE3 is DOA, IT LIVES!!!!.......Ben wants it as do his handlers....how better to accomplish it than crash the market to create a panic and crash the PM's so there is an appearance that there is no inflation but rather deflation?
QE3 is very close at hand.
http://www.youtube.com/watch?NR=1&v=WCyJRXvPNRo
Kung Fu - grasshopper dialog
The only reason that America Owes Debt off shore is so that Banks on shore can collect fees..
So that the Share Holders of the Federl Reserve Bank can collect 6% on every dollar printed into circulation.
If America owed the Federal Reserve Bank $14 trillion in printed monies America would simply Not! pay the $14 Trillion.. so the debt has to belong to someone else other that ourselves.
The Fact that America has a 120% +++ amount of leverage on every U.S. dollar verse say the Chinese 1,200%+++ Leverage.. means that "We the People" are Transfering over 1,000% of our Wealth to China with every dollar they are allowed to invest into a U.S. Treasury (or other).
This is the biggest scam going and because the Value of the Yaun? is under valued.. says Cable News in Heavy Rotation / 4 times an hour.. makes it so?
China services its debt or leverage on its Yaun / Renminbi thru production.
7 to 12 Cities a year are built that NO ON LIVES IN! and this is how China services its debt.
and the dumb ass people of America buy the story becuase it is repeated and repeated over and over again making China's Dollar "Strong like Bull!"
China's dollart is SHIT! and all of these Government Plants and / or STUPID Parrots should be rounded up and shot for Treason.
Stupid is as Stupid does. (Sino) Forrest Gump
what is this?
.
2,250,000 Contracts Betting Against October S&P 500
http://www.moneyteachers.org/Put+Options+S&P500.htm
.
October 2011 Stock Market Mega Crash !!!
http://geraldcelentechannel.blogspot.com/
Reuters Vids arn’t working at the moment so here they are from Tube:
Marc Faber to Reuters- You dont need the fed to tell you something is wrong http://www.youtube.com/watch?v=JQOAQzaESZo
Time for Greece to leave euro zone, says Marc Faber http://www.youtube.com/watch?v=2vct_EZ4jdc
Stocks suggest an “awfully wrong” global economy: Marc Faber http://www.youtube.com/watch?v=t4FiVAXRdQs
MARC FABER: My advice to you is to go and buy a farm and a shotgun, because things will get very bad in the world.