Central banks around the globe are pursuing strategies that will put all financial assets into government hands, Marc Faber explains to CNBC this morning, taking the opportunity to endorse Donald Trump's bid for the U.S. presidency. As CNBC reports, Faber expects that asset buying by global central banks will only increase, even though he believes those policies aren't working to stimulate the economy.
"The central banks aren't interested in what works, they're interested in their own prestige. And they are so deep into it already and it didn't work. They will increase the medicine," said Faber, the publisher of The Gloom, Boom & Doom Report.
"Eventually, they'll buy all the government bonds; they'll buy all the corporate bonds, all the shares outstanding. Afterwards the housing market goes down, they'll buy all the homes and then the government will own everything."
That's the road to socialism, he ominously concludes.
"I could see a situation where at the end the government owns all the corporations and all the government bonds and then we are back into socialism, into a planning economy,"
"The governments in my view, with their agents the Federal Reserve and other central banks and with the treasury department, they will do anything not to let asset prices go down," said Faber.
"If the stock markets go down, I'm convinced all the central banks will buy stocks. All of them," he said, noting that this is not without precedent, citing Hong Kong's purchase of stocks during the Asian Financial Crisis in the late 1990s.
Faber also took the opportunity to say he wanted Trump to take the White House in the U.S. election later this year, although he noted he's not eligible to vote.
"They basically hate Trump because he's not the party insider," Faber said. "He brings some fresh air into the whole process."
Faber added that he has "great sympathy" for the leading Republican candidate.
"I would vote for him for the simple reason that I think he's the only one that can really defeat Hillary Clinton and I would do anything if I were an American not to get Hillary Clinton as a president, anything."