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Mark Faber: "I Am Convinced The Whole Derivatives Market Will Cease To Exist And Will Go To Zero"

Tyler Durden's picture


Anyone seeking joyous holiday greetings and cheerful forecasts for the new year is advised to avoid the following most recent Mark Faber interview, in which in addition to his predictions for 2012 (led with "more printing" by the dodecatupling down central planners, and far less prosperity), we get the following: "I am convinced the whole derivatives market will cease to exit. Will become zero. And when it happens I don't know: you can postpone the problems with monetary measures for a long time but you can't solve them... Greece should have defaulted - it would have sent a message that not all derivatives are equal because it depends on the counterparty." And on the long-term future: "I am ultra bearish. I think most people will be lucky if they still have 50% of their money in 5 years time. You have to have diversification - some real estate in the countryside, some gold and some equities because if you think it through, say Germany 1900 to today, we had WWI, we had hyperinflation, WWII, cash holders and bondholders they lost everything 3 times, but if you owned equities you'd be ok. In equities in general you will not lose it all, it may not be a good investment, unless you put it all in one company and it goes bankrupt." As for gold: "I am worried that one day the government will take it away." As for the one thing he hates the most? No surprise here -government bonds.

Full clip:

h/t Scrataliano


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Wed, 12/21/2011 - 17:01 | 2002244 I think I need ...
I think I need to buy a gun's picture

its almost time to panic

Wed, 12/21/2011 - 17:04 | 2002256 Badabing
Badabing's picture

Can’t we just pretend every thing is all right?

Wed, 12/21/2011 - 17:08 | 2002274 CvlDobd
CvlDobd's picture

Cue the Rockaby!

Wed, 12/21/2011 - 17:16 | 2002304 Shocker
Shocker's picture

Just listen to all these people and grab bits and pieces of information/facts. Put it all together and make your own call.

They all have some good, info


Wed, 12/21/2011 - 17:27 | 2002366 DoChenRollingBearing
DoChenRollingBearing's picture

"Pb moving at a high enough velocity is a precious metal."  I read that choice line here at ZH, but I di not remember who wrote it.

Wed, 12/21/2011 - 17:47 | 2002443 SilverIsKing
SilverIsKing's picture

Not only a precious metal but it's some heavy metal too.

Wed, 12/21/2011 - 18:24 | 2002600 tooktheredpill
tooktheredpill's picture

Will cease to exist? So no more forwards for farmers as well?

Wed, 12/21/2011 - 19:04 | 2002753 FEDbuster
FEDbuster's picture

Gold and silver are for optimists.

Wed, 12/21/2011 - 19:49 | 2002873 ratso
ratso's picture

If I need anesthesia for open heart surgery, I can get it easily just by reading a few paragraphs by Mark Farber.

Wed, 12/21/2011 - 19:58 | 2002913 TruthInSunshine
TruthInSunshine's picture

"Deficits don't matter, bitchez."

Free documentary:


*This documentary didn't cost anywhere near the 60 to 200 trillion USD that Americans now owe, thanks to people like The Bernank and his crew of Red Shield crack pushers at The Non-Federal Reserve Fractional Fantasy Non-Bank.

Wed, 12/21/2011 - 20:20 | 2002963 ratso
ratso's picture

Lighten up - Merry Christmas

Wed, 12/21/2011 - 21:24 | 2003102 Hugh G Rection
Hugh G Rection's picture

yea... merry fucking christmas

Wed, 12/21/2011 - 21:53 | 2003147 UP Forester
UP Forester's picture

From the look on her face at the end of the interview, she'll have nightmares trying to explain this away....

Wed, 12/21/2011 - 22:12 | 2003176 eureka
eureka's picture

Think about Faber's often stated preference for stocks.... - it indicates that stocks are the very core of the ponzi - the essential motivational device - ever FED-sponsored to entice individuals and institutions to participate in the socio-financial game called "investing"....

I love Faber - however, I don't share his "love" for equities, which, to me, are nothing but yo-yos or elevators -  at best designed for momentum gaming, i.e. not productivity or real growth.

Anyway, to each his own. I am out of equities for good. I produce goods & services, which depend on nothing or no one but myself. I like it that way. It's what I define as freedom.

Happy Christmas, all.

Wed, 12/21/2011 - 23:14 | 2003301 azusgm
azusgm's picture

This time I have to be a bit uneasy about his advice re equities. He is using the performance of equities during a time before legal naked short selling. You could get a physical stock certificate with a unique number and registered in your name. Options market makers did not have the "Madoff exception" that allowed them to legally counterfeit shares and dilute your holding.

Different rules, different times, different outcomes.

Thu, 12/22/2011 - 00:07 | 2003404 Oh regional Indian
Oh regional Indian's picture

Well, a man can only be right so much of the time. And I don't think there ever was a 'Clean and Clear" system for stock ownership. Even if you had your piece of paper.

Just read up on DTCC, all shall be clear. In fact, Google DTCC and Ming the MEchanic. I'm serious.



Thu, 12/22/2011 - 02:01 | 2003560 AldousHuxley
AldousHuxley's picture

well Hitler did alright in WWII....lived large and made a big name for himself


I guess the lesson here is, quit your job and work on your hate speech. It is your ticket to the top job in a depressed nation overindebted from war debts due to elite's failed ambitions.


Vietnam is America's WWI

Iraq is America's WWII


Afghanistan is lined tombs of ex-Superpowers



Thu, 12/22/2011 - 02:37 | 2003589 FritoPendejo
FritoPendejo's picture

First-time virgin post...


Does this mean Christmas has been cancelled? If not, then why should I care?

Thu, 12/22/2011 - 03:18 | 2003607 AldousHuxley
AldousHuxley's picture

Christmas has been cancelled and has been replaced with mass consumerism of plastic tree with artificial lighting + some plastic shit made in China by suicide kids + gift card by those who didn't care to get to know you enough.


For your real treat, introduce your family to ZH on Christmas and talk about Ron Paul, Gold, Fed, etc.!

Thu, 12/22/2011 - 00:01 | 2003392 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Stock in companies that survive the great shakeout will be good investments when purchased at the bottom. Which ones will survive? My guess is a corporation with low debt levels and actually produces something useful. This eliminates that vast majority on Wall Street. Good luck!

Thu, 12/22/2011 - 02:16 | 2003571 Don Keot
Don Keot's picture

Kind of works for people too!

Thu, 12/22/2011 - 05:23 | 2003640 Michael
Michael's picture
Cenk from TYT cuts off and kicks Peter Schiff off his show!

This is my analysis of what happened. Tell me if I'm off base?

Schiff: "We have a centrally planned socialist economy"

Cenk: "Shut him down!" (Peter Schiff).

I see Cenk's allotted strategy for his role in his line of work, his all telling response to Schiff gives it away. Cenk is told to keep it focused on individual personalities as to whom? is to blame, and distract from the true culprit to blame.

Thu, 12/22/2011 - 05:54 | 2003650 Michael
Michael's picture

This was a response of mine to a comment on youtube;

The USA currently has a Fascist Neo-Federalist crony capitalist government, as does the rest of the world. Socialism is always a 100% failure as per the most recent example, the Eurozone experiment.

I think we'll try the Ron Paul experiment this time.

Thu, 12/22/2011 - 06:55 | 2003667 Michael
Michael's picture

Just another observation;

EXCLUSIVE: EPA Ponders Expanded Regulatory Power In Name of 'Sustainable Development'

Read more:


The 2012 Rio Agenda 21 summit mirrors the 1989 conference when they introduced Agenda 21 to the US and made us choke on it since then.

Throw out the UN and their agenda 21 bullshit from our country! There's no scientific basis for it whatsoever.

Thu, 12/22/2011 - 07:17 | 2003684 Howard_Beale
Howard_Beale's picture

Cenk said it was corporatism, not this socialist nonsense. And he is correct. Schiff is too used to being on CNBS where he always talks over whoever is interviewing him. Cenk is more on point than Peter. We are living in a corporatracy.

Wed, 12/21/2011 - 22:10 | 2003170 lynnybee
lynnybee's picture

*This documentary didn't cost anywhere near  the 60 to 200 trillion USD that Americans now owe   ... i don't owe anything.     this is a fraudulent, odious debt incurred by a corrupt dictatorial government without my consent.    let me repeat, let me be clear ......... I OWE NO ONE ANYTHING.    I OWE NO MONEY, neither in my personal affairs, nor on behalf of a fraudulent & criminal government .     Who will stand up beside me & repeat what I just stated ?   

Thu, 12/22/2011 - 00:53 | 2003475 Cheesy Bastard
Cheesy Bastard's picture

I will.

Thu, 12/22/2011 - 02:10 | 2003563 SillySalesmanQu...
SillySalesmanQuestion's picture

I will too...who else...? Let's burn it down...

Thu, 12/22/2011 - 02:27 | 2003584 merizobeach
merizobeach's picture

You'd better not pay any taxes to the US government/war machine or else you will OWE an apology to thousands of dead folks and their families.

Thu, 12/22/2011 - 06:55 | 2003668 floridasandy
floridasandy's picture

thank you for reminding everyone everywhere that we are being ROBBED by LIARS.

foxes are in the henhouse.

barbarians are at the gate.

i stand with you.

Thu, 12/22/2011 - 06:56 | 2003670 nmewn
nmewn's picture

"Who will stand up beside me & repeat what I just stated ?"

You're in good company here lynnybee. You're correct we do not owe anyone anything. The government does. Now, its only recourse is to devalue our labor through currency debasement. A sort of statist death

I try not to get too worked up about it. Governments come and go...the people always remain.

Maybe next time will be different ;-)

Thu, 12/22/2011 - 06:33 | 2003662 Monedas
Monedas's picture

Hogwash Democrat documentary featuring the people most responsible for the mess as if they were spectators at our side ! Narrator had semi-literate Afro/American dialect....couldn't even read his lines and sound intelligent ! You must be a Democrat operative to post this shit ! And those young Democrats pondering the mess......where's our Anders Braevik ?

Wed, 12/21/2011 - 21:21 | 2003094 Hugh G Rection
Hugh G Rection's picture

Gold and silver are for optimists.

Lead and copper are for realists...

Wed, 12/21/2011 - 22:58 | 2003271 prains
prains's picture

I am convinced that on a long enough get the drift

Thu, 12/22/2011 - 02:24 | 2003581 e_goldstein
e_goldstein's picture

but you still own them, don't you?

Wed, 12/21/2011 - 17:56 | 2002477 bilejones
bilejones's picture

All of mine wear shiny copper jackets, pretty!

Wed, 12/21/2011 - 17:54 | 2002463 Eagle1
Eagle1's picture

Possibly Grasshopper, just possibly. Keep your powder dry and your topnot on, pilgrim as they used to say

Thu, 12/22/2011 - 01:19 | 2003515 Seize Mars
Seize Mars's picture

Keep your powder dry and your topnot on, pilgrim

You can't cheat the mountain pilgrim. Mountain's got its own ways.

Wed, 12/21/2011 - 17:20 | 2002326 SHEEPFUKKER

Phuck it, just spend your savings and go on a bender.  At least you can have fun watching your savings go to zero....seems like a better strategy more and more every day. 

Wed, 12/21/2011 - 17:56 | 2002471 SWRichmond
SWRichmond's picture
Mark Faber: "I Am Convinced The Whole Derivatives Market Will Cease To Exist And Will Go To Zero"

This would be really unfortuneate, since derivatives are in the front of the creditor line, are they not?  If they go to zero, there's nothing left.

Wed, 12/21/2011 - 20:27 | 2002974 seek
seek's picture

It's the final wealth transfer if the counterparty fulfills their obligation, but there is something left, because the derivative holder gets the collateral (e.g. something) though it will be insufficient to cover the value of the derivative.

There is no question, though, the derivative default/collapse is the terminal event. Once it happens, it is the signal that contracts are null and void (pointless because they can't be fulfilled), and that is the point of economic lockup and separation of the paper part of the economy from the tangible good economy. Counterparty risk becomes infinite, so the only viable transactions are those with no counterparties, essentially bartering good for good with immediate delivery. Since the paper part extends to government debt, presumably the currency collapses as well.

This is why they've worked so hard to not declare the haircuts, etc at default events, to prevent the unwind. In reality, when this hits, I seriously doubt they'll let it unwind even then -- the more "stable" (ha!) way to handle it is probably a devaluation event, though I would imagine it's going to have to be coordinated between the major currencies. This probably explains why it hasn't happened yet: I suspect somewhere there are meetings taking place with each country negotiating the gang rape of the citizens, and they're getting hung up on details of who gets screwed the most and how.

Just to wrap up the thought experiment here, it plays out:

- Risk of imminent derivative default presents itself, probably triggered by a sovereign default/haircut that can't be kicked down the road. Immediately prior to this there are asset (including gold) sell-offs as derivative contracts try to deliver. This accelerates.

- It becomes obvious to the TPTB that this is indeed the big unwind event. Given what happened in 2008, this realization takes place in 48-72 hours. Like 2008, the tip off will be accelerating sell-offs and secret government meetings at the same time we're hearing everything is fine from the talking heads.

- Unlike 2008 the markets can't be calmed down with the unlimited guarantees, because the outflows have virtually nothing to do with retail investors anymore, and the banks that are responsible already have been operating on the assumption of government backstop and using that to gamble even more. The pure printing solution just accelerates the problem (hyperinflation/currency collapse) so this won't happen. The only option is a "market holiday" that will happen as a result of the secret meetings in that 72 hour window. This is the very last public event before the crisis is "solved." Best guess is the holiday runs 1-2 weeks at most.

- During this holiday obviously markets are closed. I don't think the banks will be however, but capital/withdrawl controls will be in place. There needs to be enough money available for people to buy food, etc, otherwise due to being a cashless society riots start really fast, and TPTB want the people docile so they don't realize how fucked they're about to be.

- After this 1-2 week holiday, joint announcement of most major currencies to simultaneously devalue, maybe with the announcement of a new global regulatory authority and a sovereignty grab.

Now I think some of the banking interests will know this is the "solution" ahead of the market holiday by a decent margin, so I suspect they might make some sort of move in commodities a week or two before this goes down, and also buying up favorably priced (e.g. distressed) debt knowing it'd be paid back in devalued dollars. All of this also need to be not-too-obvious, so my guess is you'd see a puzzling jump in volume and pricing in some of the most traded commodities that have a high percentage of actual deliveries (not sure what this would be, maybe foodstuffs or oil, but it won't be gold, since it's too small and too obvious., though little doubt retail investors and slow money will drive gold up during the 72 hour crisis window.) So this would be a leading indicator, subtle wierd changes in commodities with deliverables right before or during a big sell-off.

Given 2008, though, all the important things will happen in a 5-day window that happens after maybe a week of obviously high market stress.

Just wild hypothecating, but my guess is we don't have much longer. Definitely under 2 years, maybe less than a month.

Wed, 12/21/2011 - 21:21 | 2003093 VisualCSharp
VisualCSharp's picture

Awesome prediction, and right in line with what I've been thinking for quite some time. Thanks for stating it so eloquently. :)

Thu, 12/22/2011 - 02:55 | 2003595 UP Forester
UP Forester's picture

Steve Keen on Keiser:

The British banking system will last about five minutes after the run starts.

Oh, yeah, and MF trustee is putting everything in a basket, gold & silver contracts as well, and paying out 78%.

Wed, 12/21/2011 - 23:57 | 2003385 SoCalBusted
SoCalBusted's picture

Let me sum this up.  Recent history has shown counterparties can't be trusted.  We've built a system based on counterparty trust.  Ergo, we are screwed.

Thu, 12/22/2011 - 01:16 | 2003511 eureka
eureka's picture

SEEK - I believe you have found the near exact scenario playbook.

Since July I have stated that US collapse will be clear to everyone within nine months - that is to say I agree with your hypothesis and nearest term time frame for the greatest societal execution ever observed.

Q1 2012.

Thu, 12/22/2011 - 07:47 | 2003700 Snidley Whipsnae
Snidley Whipsnae's picture

The (mostly) floating fiat currencies, to be devalued, must be devalued against something.

The situation today... when one fiat rises another must fall or no devaluation happens.

When countries had currencies backed by gold an individual currency could be devalued against gold.

Since that system no longer exists we have a 'POGO' arrangement, where one currency is devalued by excessive printing and that currency falls against all others. That is what floating currencies do.

Point is, as the printing continues all currencies must fall against commodities in general. For a 40% devaluation to occur in all fiats, all commodities will rise by a similar amount.

How will the worlds economies fair when food, oil, base metals, PMs, etc, rise by 40% in all currencies? ... and this happens while jobs/pay remain stagnant or are falling? Not a pretty picture.

Thu, 12/22/2011 - 11:03 | 2003986 Ranger4564
Ranger4564's picture


Thu, 12/22/2011 - 12:22 | 2004202 Socratic Dog
Socratic Dog's picture

Probably a dumb question, but if all the major currencies are devaluating, what exactly are they devaluating against?  Does that not require a return to some absolute standard.?  Gold for example?  Or oil? Or buckets of soylent green?

Thu, 12/22/2011 - 17:02 | 2005292 ViewfromUnderth...
ViewfromUndertheBridge's picture

under 2 years...Alisdair McLeod in GoldMoney recently quoted some research on the parabolic rise of USD creation...already parabolic, goes vertical FEBRUARY 2014. Make a diary note.

Thu, 12/22/2011 - 07:00 | 2003674 floridasandy
floridasandy's picture

sounds like a totally idiotic strategy in a meltdown.

Wed, 12/21/2011 - 17:20 | 2002329 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

On a long enough timeline the survival rate for derivativs drops to zero

Wed, 12/21/2011 - 17:18 | 2002315 chunga
chunga's picture

Carl Orff's ~ O Fortuna sounds great in the background.

Drowns out the war-drums a little. There still there ya just can't hear 'em.


Wed, 12/21/2011 - 18:12 | 2002536 blu
blu's picture

Nice choice. That might be the theme music for the age, I'm afraid.

Wed, 12/21/2011 - 17:20 | 2002327 bank guy in Brussels
bank guy in Brussels's picture

Here is the YouTube version of the above Mark Faber video, here in Europe it plays better than the version at the above link:

Marc Faber Predictions for 2012. 'They're gonna print money'

Wed, 12/21/2011 - 17:35 | 2002387 Manthong
Manthong's picture

+1 ..  First thing I did when the clip started buffering excessively was seek out the original.

Wed, 12/21/2011 - 17:09 | 2002278 Turd Ferguson
Turd Ferguson's picture

I'd like to see Faber vs Roubini in a full-on, MMA-style cage match.
Preferably, to the death.

Wed, 12/21/2011 - 17:12 | 2002288 WhiteNight123129
WhiteNight123129's picture

of Roubini.


Wed, 12/21/2011 - 17:15 | 2002299 Turd Ferguson
Turd Ferguson's picture

Yes. I'm assuming that Faber would beat the living daylights out of him.

Wed, 12/21/2011 - 17:21 | 2002333 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1, + 1, + 1

Visualizing Roubini getting his butt kicked by Faber...

Wed, 12/21/2011 - 17:51 | 2002453 Cyrano de Bivouac
Cyrano de Bivouac's picture

How about a Battle Royale with- Roubini, Faber, Celente, AEP, Reggie Middleton, Bruce Krasting, and Mohamed El-Erian.

Wed, 12/21/2011 - 17:56 | 2002473 brew
brew's picture

el-erian would fight like a girl...

Wed, 12/21/2011 - 18:43 | 2002685 billhilly
billhilly's picture

If Celente is in the cage then we MUST have Jon Corzine in there too. Wheeee !

Wed, 12/21/2011 - 22:56 | 2003264 eatthebanksters
eatthebanksters's picture

Corzine would just turn around, bend over and grab his ankles...

Thu, 12/22/2011 - 01:42 | 2003541 ForTheWorld
ForTheWorld's picture

Middleton clearly has a reach advantage.

Wed, 12/21/2011 - 17:23 | 2002350 TruthInSunshine
TruthInSunshine's picture

Roubini would lose, and go home crying, weeping and cuddling up next to his vagina-shaped indentations on his apartment wall -

Nouriel Roubini's Wall Vaginas Revealed


Soooooomeone has mommy issues --- Nouriel!

Wed, 12/21/2011 - 18:04 | 2002511 Conax
Conax's picture


Awesome link, you guys got to see this. Some are missionary and some are doggy-style.

That dude is weird.

Wed, 12/21/2011 - 19:22 | 2002805 gmrpeabody
gmrpeabody's picture

Did somebody say dog...

Wed, 12/21/2011 - 23:14 | 2003302 SilverDOG
SilverDOG's picture

Woof, I think so.  - scooby doo voice.


Wed, 12/21/2011 - 20:05 | 2002933 delacroix
delacroix's picture

douchebags, and vaginas go together

Thu, 12/22/2011 - 01:31 | 2003528 natty light
natty light's picture

V shaped recovery?

Wed, 12/21/2011 - 19:07 | 2002762 pine_marten
pine_marten's picture

"sewed together dope bag sculpture"  Wonder what he paid for that?  More interesting than the tacos.........

Wed, 12/21/2011 - 19:14 | 2002793 FranSix
FranSix's picture

Talking about vulvas, Dr. Faber is a little cowed by the smokin blonde, and she's really grossed out about him.

Wed, 12/21/2011 - 19:50 | 2002879 Jay Gould Esq.
Jay Gould Esq.'s picture

Plaster poons...Roubini is a stone cold freak. This guy is starting to call to mind one of Dr. Lecter's patients, replete with ceiling sling and poppers.

Wed, 12/21/2011 - 21:07 | 2003059 nmewn
nmewn's picture


Vulvas of Doom!!!...oh man I

Wed, 12/21/2011 - 22:58 | 2003269 eatthebanksters
eatthebanksters's picture

Wasn't than a 'Conan the Destroyer' character?

Tue, 12/27/2011 - 16:31 | 2014528 Thulsa Doom
Thulsa Doom's picture

No, that's me. Snake-cult-orgies are my thing.

Wed, 12/21/2011 - 17:14 | 2002294 NotApplicable
NotApplicable's picture

Double-billed with Celente vs. Corzine.

Problem is, how do you go about keeping Roubini and Corzine from cheating?

Wed, 12/21/2011 - 17:18 | 2002317 brew
brew's picture

celente is so mad he'd rip off his head and shit down his neck...

Wed, 12/21/2011 - 17:25 | 2002356 Triple A
Triple A's picture

I heard Celente knows some form of martial arts too, I think he has the advantage

Wed, 12/21/2011 - 17:37 | 2002401 TruthInSunshine
TruthInSunshine's picture

Marc Faber made Chuck Norris shave.

Wed, 12/21/2011 - 23:52 | 2003369 GMadScientist
GMadScientist's picture

...little chuck.

Wed, 12/21/2011 - 17:56 | 2002475 Papasmurf
Papasmurf's picture

Loser takes all battle.

Wed, 12/21/2011 - 17:20 | 2002328 scratch_en_sniff
scratch_en_sniff's picture

Faber used to do German porn flicks...not a lot of people know that. He was definitely in one i watched the other night, its either him or his brother, that ponytail was flailing around the screen like a mad stote.

Wed, 12/21/2011 - 17:22 | 2002343 the not so migh...
the not so mighty maximiza's picture


Wed, 12/21/2011 - 18:52 | 2002714 JoBob
JoBob's picture

No, it is "you're insane".

Wed, 12/21/2011 - 21:03 | 2003050 Banksters
Banksters's picture

Not necessarily.  


Oh yeah, why do I drive in a parkway but I park in a driveway?  This grammar shit is fucking my head up.



Wed, 12/21/2011 - 17:23 | 2002349 Let them eat iPads
Let them eat iPads's picture

Holy schiesse.

Wed, 12/21/2011 - 17:26 | 2002360 LFMayor
LFMayor's picture

no... that's an entirely different video

Wed, 12/21/2011 - 22:59 | 2003276 eatthebanksters
eatthebanksters's picture


Wed, 12/21/2011 - 18:01 | 2002489 fuu
fuu's picture


Wed, 12/21/2011 - 18:15 | 2002506 Normalcy Bias
Normalcy Bias's picture

Long Sperma-Spritz-Spektakel Bitchez!

Wed, 12/21/2011 - 18:17 | 2002564 fuu
fuu's picture

I think Corzine should be the new Betty.

Wed, 12/21/2011 - 18:20 | 2002583 Normalcy Bias
Normalcy Bias's picture

Yes, if there is any justice left in this world...

Wed, 12/21/2011 - 21:16 | 2003080 nmewn
nmewn's picture

From vulvas to pony tails in the blink of an eye...taint nuthin to it.

Only on

Wed, 12/21/2011 - 23:21 | 2003320 TheFourthStooge-ing
TheFourthStooge-ing's picture

scratch_en_sniff geschriebt:

Faber used to do German porn flicks...not a lot of people know that.

Faber was the original Master Costello.


Thu, 12/22/2011 - 03:22 | 2003609 TruthInSunshine
TruthInSunshine's picture

Faber is known around Europe as Ze Swiss Hedgehog.

Wed, 12/21/2011 - 17:22 | 2002338 Toxicosis
Toxicosis's picture

Yep, I'd pay a one ounce silver maple to watch Faber destroy Roubini.  But Faber's fear that governments of the world will be able to call on everybody to give up their gold is quite a stretch as far as I see it.  With everything happening in the world, what with resource wars and rampant corruption, I fail to see that centralized government will be able to maintain itself as the chaos ensues and becomes widespread.  I mean it's not as if the cops or the military are going to be paid or anything of that nature, and their just as liable to say fuck it and fend for themselves.  With the number of narcissists, sociopaths, and psychopaths running around out there, I sincerely doubt that central control is going to run the show anymore.  When this goes to where I'm thinking it's going to go, it'll become a free for all, cause nobody at the top or bottom recognizes any sort of civil authority, and few people will be left to maintain order in their own damn lives.  As far as the future is concerned you're either a contributor or fodder.  Gold and silver will act again as a form of barter or monetary exchange, cause I can't see the stomach of the people out there giving a shit about some bureaucrat running the show again.  Just my two cents that's all.

Wed, 12/21/2011 - 18:01 | 2002490 MrBoompi
MrBoompi's picture

The US successfully confiscated gold before.  Maybe they didn't get all of it, but they DIDN'T NEED TO GET ALL OF IT.

And they know they can just as easily do the same thing today.  The price of gold can't be suppressed forever, regardless of what Jamie Dimon thinks.  But if the price needs to go up to, say, $20,000/oz for "whatever reason", you don't think they would let peons like us see those gains do you?



Wed, 12/21/2011 - 18:59 | 2002735 Anton LaVey
Anton LaVey's picture

And why not?

Here is a thought experiment for ya: one (1) US$ 20 gold coin is almost... one troy ounce in weight.

By your calculation, that would mean that one (1) US$ 20 coin would be worth US$ 20,000.

Now, here is my question: how hard is it to hide one freaking gold coin. Let me rephrase that: ONE FREAKING GOLD COIN!! Have you even seen a US$20 Gold Eagle. Very pretty coin. Surprisingly small. According to your calculations, 50 of those coins would be worth a tidy US$ 1 million - and they would still be very easy to hide.

Can you see the problem now? ''They'' (for different values of ''They'') can't seize all the freaking coins in the US of A. When all it takes is a garden, a shovel and a plastic box to safeguard enough coins to make a killing, you can bet a lot and a lot of people are going to start digging, pronto, if they haven't done so already. Confiscation of every Gold coin is simply impossible - which is why they are AFRAID of gold!

Now, on the other hand, they could forbid the buying and selling of Gold coins. OK, I'll buy that. But then again, all it takes is a car, and a trip to Canada, and I am sure you'll find plenty of people up north who are ready to give you (a lot of) pretty little bits of paper for your one single coin.

And if Gold gets anywhere near the price you mention, you can bet your northern neighbors will line up around the block for a chance to buy your single gold coin. Again, how hard is it to hide a single - heck, a dozen - gold coin(s) in a whole FREAKING car made of metal? What are they going to, use X-Ray machines on your car? Good luck with that. Send sniffing dogs to pick out the smell of ... Gold? Yeah, right. Now, you see where this is going: forbid sales of Gold coins for the price you mention and a lot of people are going to ''travel'' up north once in a while. Quebec City is sooooooo nice this time of year, you know, eh?

Forbidden in Canada? What about Mexico? Slightly more dangerous, what with all the drug cartels and all that, but still possible. And let me tell you something: if they forbid buying and selling one single coin, you can bet the black market will price the coins accordingly... US$ 200,000 per one-ounce coin? Bah, humbug, 2 million bucks a coin would be more like it.

Now, can you finally understand why (a) they are afraid of Gold and (b) why it is still the best wealth insurance money can buy?

And, by the way, in the 1930s, the G-Men opened bank safes to seize the gold coins inside. With the current (zombie) state of most banks and slight problems like MF Global, what is your Gold doing in a safe anyway?

Wed, 12/21/2011 - 19:08 | 2002769 Sun Tsu
Sun Tsu's picture

Counterfeit gold rounds will certainly be more abundant.  

Wed, 12/21/2011 - 21:14 | 2003074 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

There is an idiot born every second

Thu, 12/22/2011 - 01:41 | 2003538 natty light
natty light's picture

The authorities have not been able to prevent the widespread possession of contraband [drugs], I don't see how PM's would be much different [great value in a small size].

Many Americans have connections with their home country i.e. Philippines, Mexico, India: PM flight. How hard would it be to smuggle gold in a larger amount of other metals or tech waste in a container?

Wed, 12/21/2011 - 19:54 | 2002894 Marco
Marco's picture

They wouldn't do the same thing today. FDR did what he did because he didn't want to back out of the gold standard, just change the peg to devalue the dollar (and increase government assets).

Nowadays without a peg they can confiscate it the easy way, taxes ... just hit people with taxes on export and transfer of ownership.

Wed, 12/21/2011 - 17:29 | 2002358 chdwlch1
chdwlch1's picture

Now you're talkin Turd...Dana White has to set this up! The winner to be crowned as the real "Dr. Doom"! I hate to say this, but with Roubini being an institutional, MSM shill trained by Harvard's "finest" (Sachs and Summers), he'd probably win by submission...Rear Naked Short.

Wed, 12/21/2011 - 18:27 | 2002624 NotApplicable
NotApplicable's picture

You know, that's some imagery I just didn't need. Especially contrasted with his Wall of Vagina's.

Thu, 12/22/2011 - 02:44 | 2003591 FritoPendejo
FritoPendejo's picture

I like Vaginas. I can't believe you like Vaginas too...

Thu, 12/22/2011 - 02:28 | 2003585 e_goldstein
e_goldstein's picture

With tomahawks?

Wed, 12/21/2011 - 17:09 | 2002279 JPM Hater001
JPM Hater001's picture

Sure.  Status quo everyone...Pass it on...

Wed, 12/21/2011 - 17:19 | 2002323 Badabing
Badabing's picture

Thanks, I feel so much better now!

Wed, 12/21/2011 - 18:07 | 2002517 masterinchancery
masterinchancery's picture

Just keep saying kumbaya over and over again, and it will be all right.

Wed, 12/21/2011 - 20:07 | 2002944 Zero Govt
Zero Govt's picture

we've been doing that for 4 years hasn't worked

Wed, 12/21/2011 - 23:54 | 2003374 Eally Ucked
Eally Ucked's picture

What do you mean, of course we have to!

This thing delivers probably 20% of US GDP!

Thu, 12/22/2011 - 01:19 | 2003514 San Diego Gold Bug
San Diego Gold Bug's picture

Silver Bells Christmas Video Gives Zerohedge some Xmas Love!!!

Watch and laugh here.

Wed, 12/21/2011 - 17:06 | 2002266 Future Tense
Future Tense's picture

It is not time to panic yet.  John Talbott who wrote the first book about the housing market collapse back in 2003, said the housing market has now bottomed.....

Wed, 12/21/2011 - 17:17 | 2002310 NotApplicable
NotApplicable's picture

Really? Now?

Lemme guess, last chance to board the "lowest mortgage rates, EVER" train? Otherwise, I see nothing indicating an improving housing market. Even the bottom has to last a while.

Wed, 12/21/2011 - 17:31 | 2002347 WonderDawg
WonderDawg's picture

The fact that he saw what numerous other people saw doesn't necessarily make him an expert. And other so-called experts, like Schiller of Case-Schiller, look for a further 25-40% drop from here. Common sense tells me that we have much further to drop.

edit: And tearing down houses in major cities to try to preserve property values isn't a signal that we reached the bottom.

Wed, 12/21/2011 - 18:03 | 2002500 HardlyZero
HardlyZero's picture

Remember this is the Matrix.  The bottom perceived is virtual hopium induced.  You are actually falling at terminal velocity 5, 4, 3....feet from the ground in a diving position head first without a helmet with 1000 Trillion derviatives chaser close behind.  This will be the ultimate China Syndrome.

Wed, 12/21/2011 - 18:30 | 2002635 NotApplicable
NotApplicable's picture

Yet watching it all unwind so slowly feels like "bullet-time."

Wed, 12/21/2011 - 17:20 | 2002325 mmc1968
mmc1968's picture

You should try acting like a man for a change, and quit panicking.

Wed, 12/21/2011 - 20:10 | 2002949 Zero Govt
Zero Govt's picture

i've spotted the bag holder

rest of us, 'Run to the Hills, Run for your Lives' 

Wed, 12/21/2011 - 17:47 | 2002395 vast-dom
vast-dom's picture

It's less than zero currently, it's just that no one wants to admit that their vapor assets aka derivatives are by many factors to the Nth pure smelly liabilities -- who gets out first and who gets crushed under the crumbling ponzi pyramid....... hieroglyphs on the wall = ejak death hassan game over.

Wed, 12/21/2011 - 18:37 | 2002665 PY-129-20
PY-129-20's picture

Those of you who are German or understand (Swiss) German I'd recommend you to watch this great video of Dr. Faber (more than 20 minutes with Dr. Faber):

The video quality is poor but I've never seen a better interview with Faber and at the end (part 2) it was so hilarious, especially when he talked about the USA and Obama ('a third class government'). And that Switzerland should dare to say FU to the USA and show some resistance against the USA.

This part ( ) :

FABER: Switzerland has property rights, a constitution, laws - we should not put up with the Americans every time. Especially...especially not from the Americans.

MODERATOR (stunned): What does this mean - especially not from the Americans - are they second class people?

FABER: Third...third class people... (laughing like a Bond villain)

MODERATOR: You hate them so much???

FABER: One thing is absolutely sure - their government is a third-class government...
I do not agree with his view on the US or the American people. I agree with his view on President Obama. Sure, America is going through a rough time - like many other countries in the world - but it has more potential than most of the others and creative people that are willing to take risks to succeed.

Japan is different after Fukushima - England? A mere shadow of it's great past. France? I think after the great reset and if they're able to give up certain things (no, not their nationality or Paris :P) they still have good chances. China? It depends. They lack certain skills and it's a huge society - if they can transform into a more open and creative society - maybe. But then? I'll go with Germany and USA - both have problems (like the age pyramid in Germany) and it'll depends on how they solve them.

Thu, 12/22/2011 - 08:22 | 2003712 Shylockracy
Shylockracy's picture

Fear not, Switzerland will liberate Germany and Austria...

Schweiz annektiert Deutschland und Österreich

Wed, 12/21/2011 - 19:06 | 2002758 Ruffcut
Ruffcut's picture

That is some fucked up christmas cheer. Fucking asshole.

I have heard this guy for years. He is general as fuck and does not expand to anything worth a shit.

He still gets cnbs play for the moonbat angle.  Mother fucking div market is huge as dolly pardons tits. If it fails, the whole system will collapse, within minutes.

Yes, fukushima has strained your physical system, to date. Doom faber is fear mongering. Fucking cunt.... Even wars have a truce over the holiday.

Wed, 12/21/2011 - 21:09 | 2003063 Banksters
Banksters's picture

"fucking cunt"   


It is wrong to speak of our mothers in such a light.

Wed, 12/21/2011 - 22:10 | 2003172 SilverShortage
SilverShortage's picture

I follown Dr Marc Faber daily in this blog , you won't miss one Marc Faber's interview or speech  I really do not seem to have enough of Marc Faber

Thu, 12/22/2011 - 02:23 | 2003579 e_goldstein
e_goldstein's picture

When the going gets weird, the weird turn pro.


Thu, 12/22/2011 - 15:32 | 2004962 ambrosiac
Wed, 12/21/2011 - 17:02 | 2002246 Gubbmint Cheese
Gubbmint Cheese's picture

derivatives go to zero but stocks are okay? Sure..  good luck with that thought process.

Wed, 12/21/2011 - 17:54 | 2002464 taraxias
taraxias's picture

Spot on. Half the shit he spewed is just that.....SHIT. I still don't understand the love affair with Faber on this blog when many of his facts are just plain wrong.

Wed, 12/21/2011 - 19:12 | 2002788 I am a Man I am...
I am a Man I am Forty's picture

in the long run they will, stock is ownership in a company, derivatives aren't jack shit, there is a huge difference, if derivatives collapse it will cause huge volatility and crash the market, this is why you need dry powder and when you buy

Wed, 12/21/2011 - 20:20 | 2002964 delacroix
delacroix's picture

stock ownership, is an unsecured long position, with your broker, unless you have the paper certificate

Thu, 12/22/2011 - 01:03 | 2003487 GMadScientist
GMadScientist's picture

my broker's oxygen, is an unsecured long position, unless he gives me my money.

Wed, 12/21/2011 - 17:03 | 2002248 Matevski
Matevski's picture

Sort of like WWIII... on steroids.

Wed, 12/21/2011 - 17:07 | 2002268 JPM Hater001
JPM Hater001's picture

Like nothing.  We havent seen this before.

And it's sort hard to compare one thing to another when neither has happened yet.  Here let me try...

When you stick dynomite up the ass of a dragon who is eating a fairy the result is just like WWIV.  Fried fairyland.

I'm rather proud of that analogy.

Wed, 12/21/2011 - 17:04 | 2002253 Andrew Jackson ...
Wed, 12/21/2011 - 17:04 | 2002254 Let them eat iPads
Let them eat iPads's picture

Zero derivatives, bitchez.

First rule of derivatives is "YOU DON'T TALK ABOUT DERIVATIVES".

Wed, 12/21/2011 - 17:34 | 2002380 DoChenRollingBearing
DoChenRollingBearing's picture


Unless you have to solve them:






(I know, pretty poor...)

Wed, 12/21/2011 - 17:04 | 2002255 TruthInSunshine
TruthInSunshine's picture

I have a very special hot tip for you [draped in a heavy, thick, Austrian accent, much like Faber's]:


The world's economic system is truly a massive Ponzi, and the biggest cover up is under way to try and stave off the big shart (maybe the Mayans were right, whether by chance or astronomical mad skillz):

Obama and Geithner: Government, Enron-Style 

Wed, 12/21/2011 - 17:16 | 2002302 Josh Randall
Josh Randall's picture

Taibbi for Press Secretary under Ron Paul!

Wed, 12/21/2011 - 17:29 | 2002365 JustObserving
JustObserving's picture

Taibbi for VP  - or Secretary of State.  He is wasted otherwise. We need honesty and integrity at the top.

Wed, 12/21/2011 - 17:35 | 2002386 LasVegasDave
LasVegasDave's picture

Taibbi for Minister of Propaganda or the Goebbels Distinguished Chair in Psychology at Columbia

Wed, 12/21/2011 - 18:04 | 2002507 fuu
fuu's picture


Wed, 12/21/2011 - 17:04 | 2002258 unky
unky's picture

And because the derivatives are the most senior thing, it will take away all of the savings people have in a bank/insurance with it...

Wed, 12/21/2011 - 17:05 | 2002259 Squishi
Squishi's picture

the culmination of all meatings will end with a major christmas buffe.  

Wed, 12/21/2011 - 17:06 | 2002261 brew
brew's picture

goodbye, blue skies...

Wed, 12/21/2011 - 17:47 | 2002438 mayhem_korner
mayhem_korner's picture



Look Mummy, there's an aeroplane up in the sky.  (And a tank in the front yard)

Wed, 12/21/2011 - 18:03 | 2002504 brew
brew's picture

did-did-did-did you hear the falling bombs  (wwiii)...

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