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.

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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,

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