Guest post by Gold Silver Worlds.
Marc Faber is one of the very successful investors on earth. He recently explained his view on the monetary policies of the developed regions in the world. Obviously he is no fan of the Keynesian way of thinking which is applied by the central banks in the developed regions.
The Keynesian policy considers easy money as a way out of economic recession and deflation. They argue that money creation smoothens out the business cycle. In his presentation, Marc Faber demonstrates that these kind of interventions achieve exactly the opposite: they make the business cycles much more violent, create extreme fluctuations in economic activity and result in far more financial volatility. In his opinion, the essential problem is that the Keynesian way of thinking tries to solve long term structural problems with short term fixes, with an emphasis to create bubbles to help the economy. However, Mr Faber notes that bubbles usually hurt the majority of market participants.
This week’s episode features a “must hear” clip from “Dr. Doom” Marc Faber, the outlook for stocks and bonds headed into year-end, the incredible dangers of high frequency trading, the Obama camp’s latest outrageous move, and more!
Full interview click here.
In this communist propaganda piece, Marc Faber gives his take on the near future.
The experiment of the central banks will fail. It may work for a while, much as white paint on a cracked building looks nice for a while.
In the future, 50% of taxes may be used just for payments on the debt.
Then there will be hyperinflation, and the governments will distract the people by going to war. Full video below.
Another great must read report by Ice Cap Asset Management.
Dr. Ben Bernanke went to school and never left. He is an academicwho has never worked in the private sector yet controls the fate oftrillions of Dollars, Euros, Yens and Pounds. Today he is smiling.Dr. Marc Faber also went to school, but he didn’t stick around. He hasworked exclusively in the private sector and today is considered oneof the most prescient investors on the planet. Today he is alsosmiling.To better appreciate all the smiling, one must understand exactlywhat happened or better still, what didn’t happen in Brussels lastweek.In the eyes of Dr. Bernanke and Dr. Faber, the historic 17themergencysummit meeting by the Europeans to solve their money problemswent off without a hitch. Not only did the Euro-Elite fail to resolvetheir debt crisis, they failed miserably at even coming close torecognizing the problem. It ’s this distinct lack of recognition that isturning frowns into smiles.Dr. Bernanke is smiling of course because he is a money printer. Thecontinuing inability of the Euro-Elite to solve their problems virtuallyguarantees a 2012 recession in the Old World. In return, this will alsocreate a recession in the US which will provide plenty of excuses forMr. Bernanke to once again print money under the guise of QE3.Dr. Faber ’s uncanny ability to understand the big picture and foreseethe response from financial markets allowed him to predict the 1987crash, the 2008-09 crash, and the resulting 2009 stock market rally.Dr. Faber is smiling today not because he agrees with Dr. Bernanke’sfondness for money printing, but rather because the global financialsystem is developing exactly as he has envisioned. This vision ofcourse is a money maker for both him and his clients.