Marc Faber`s Investment and Trading Ideas - A Tracking Blog About Dr. Marc Faber , Daily Tracking of Dr. Marc Faber Investment Strategy , Market analysis & Outlook and Media appearances
MARC FABER : Ireland,Spain,Greece,Portugal,Belgium are the rotten apples.
Marc Faber :...I think what you need to avoid are government bonds , now can they rally for ten days , could be the case but in general you do not want to be in sovereign bonds certainly not of countries like Spain Portugal Greece Ireland Iceland and so forth because they would have to be restructured . but the problem is usually when you have bad apples in your family the whole family becomes rotten so all the European governments in my opinion will have government debt that probably will become difficult to pay off or even meet the interest payment on the government debt ......The world has over six billion people we have 1.3 billion in China one billion in India and I live in Asia , Asia has 3.6 billion people it's a growing region it's demographically young with the exception of Japan and so I have a special knowledge about Asia and therefore I also invest in Asia and I have two or three investments in Switzerland but hardly any..... On a global scale whether Ireland exists or doesn't exist even if Spain exists or doesn't exist , or Belgium exists or doesn't exist it's completely irrelevant , it's sad to think of one's self that I am completely irrelevant but that's a fact of economic life today .......
Marc Faber :"...The entire energy sector including natural gas is probably relatively attractive because the global economy could surprise on the upside. In other words, the EMs continue to grow and the oil demand continues to grow, especially out of China and India. The Europe and US stabilizes and also recovers somewhat, in which case the demand for oil will go up and drive up prices. On the other hand, if the world again goes into recession, it will be accompanied by significant geo-political tensions, in which case there could be oil interruption and oil would also rally. In either case, oil will stay high...." via moneycontrol.com
well it isn't getting better... what is it going to be like end of the year? or end of 2011?
I hope people are trying to protect them selves.. John Williams from shadowstats.com about the U3 cooked numbers from the government still reading about bank closures coming.John Williams from ShadowStats.com says buy and store scotch! Put everything you got into canned food and shotguns! And horde scotch and gold oh and buy ammo i think ammo would be a great currency in the future especially if the dollar collapses. 7.62x39 mm and 223
also get handgun ammo, and mres, lambs, pigs, goats, all can be used for barter. hell even rabbits cheap to raise and fur is worth good money.
Three or four years into the future I think we could be in a hyperinflation, within the current year youre going to see much higher inflation than most people are looking at, John Williams told MarketWatch.
Williams said that his definition of hyperinflation would be a situation in which a $100 dollar bill would become more functional as a piece of toilet paper than a store of value.
This is a time when you want to preserve your wealth and assets because inflation will knock the value out of it, he added, advising that people buy physical gold and assets other than the U.S. dollar.
Then when the hyperinflation hits youll see disruption of normal commerce, you wont have enough $100 dollar bills to buy what you want, said Williams, adding that items to barter with, such as a bottle of scotch, would be more valuable than actual cash, even in large quantities.
Williams said that such items should be procured now in bulk so people had some means with which to barter and get them through rough times.
At least as far back as April 2008, six months before the collapse of Lehman Brothers and Bear Stearns, Williams predicted that the world economy was entering a phase of hyperinflationary depression that would peak in 2010.
In a hyperinflation special report, Williams said that the U.S. was on an irreversible course of financial armageddon that would likely lead to extreme political change and/or civil unrest.
Top trends forecaster Gerald Celente has echoed Williams advice, remarking recently that putting food on the table will become a primary concern over buying gifts at Christmas.The J.P. Morgan [banking] interests and Global Bankers found it was only necessary to purchase the control of 25 of the greatest papers. ...an editor was furnished for each paper to properly supervise and EDIT information etc etc
Define HIGH TREASON America, do Police Protect Criminals Now?? G20? this is what happens when you do not include home prices in the inflation index, when you let home prices increase to high that means personal debt is really huge ie mortgages in order for people to pay off all these mortgages you have to keep increasing the money supply or face a shortage of cash to pay off these huge debts
Marc Faber: In general, emerging markets have been weak relative to the US and relative to Japan and for the next six months emerging markets (EMs) will not perform all that well."
"In India we had a market that performed superbly between March 2009 and just about three weeks ago. It was ready to come on the profit taking anyway. Now we have this profit taking phase and it will last for a while"
"We could easily in emerging economies have a correction of 20-30%." Marc Faber added
MARC FABER: "....I think increasingly, investors begin to realize that between the Republicans and the Democrats, the Republicans don't want to increase taxation, and the Democrats don't want to cut spending. And so the deficit in my opinion will stay above $1 trillion for as far as the eye can see...."
Marc Faber : "....I don't think it will double dip for now. And we live in a global economy today. And you have part of the global economy that are relatively weak, like the U.S. and Europe, although from the lows, they have recovered somewhat. But then you have other parts of the world that are still very strong, the emerging economies, in particular China and India. Now the big question is obviously what will happen to that part of the global economy because that has been driving overall economic growth in the world. And I think the Chinese economy is decelerating. And I think that next year there could be some significant disappointments. "...Marc Faber told Bloomberg on 12/9/10
an excerpt from the dialogue between Bloomberg's LIU and Doctor Marc Faber editor and publisher of the GLOOM, BOOM, AND DOOM REPORT LIU: ...So then, Marc, if you would buy into treasuries on a rebound, would you also buy into equities at all then, U.S. equities?...
MARC FABER: ...Well, I mean, U.S. equities come up reasonably well compared to emerging market equities at the present time. This is not a long-term call. But tactically, right now, I think the US market may actually outperform emerging markets. The market I like actually best is the Japanese stock market.... LIU: ...The Japanese market? Well, that's an idea. Marc, we'll have to leave it there. Good to talk with you. Marc Faber there from Thailand. ...
Marc Faber : “The Europe and US stabilizes and also recovers somewhat, in which case the demand for oil will go up and drive up prices,”
“If I look around markets, we had a very negative sentiment about the euro six months ago. Recently, we had a very negative sentiment about the US dollar. From this very low sentiment level for the US dollar where everybody hated the US dollar, in other words we can have somewhat of a recovery.” Marc Faber told India’s CNBC TV channel recently
Brazil's Rising Star As the U.S. and most of the world's countries limp along after the crippling recession, Brazil is off and running with jobs, industry, and resources. Steve Kroft reports.Lots of Ex Military Folks are moving down to Brazil by the pound to escape the upcoming collapse.
Nobel Economist Mundell: Add Renminbi to IMF Reserve
China's currency has strengthened to the stage where it is "almost de facto convertible" and should be included in the international reserve basket held by the IMF, Nobel Prize-winning economist Robert Mundell said in this interview with the HKTDC prior to his appearance at the Asian Financial Forum, 17-18 January 2011.
Marc Faber more bullish about the Asian Currencies such as the Singapore dollar than the Australian and The Canadian Dollars which are very tight to the commodities cycle and hence vulnerable to any slow down of the demand from China
Marc Faber:"...I do not think the Euro will go to parity , but can it go down another ten , fifteen percent ? ...easily I think the Eurozone will bailout Greece it will also bailout other countries like probably Spain at some stage , Portugal ...and that is obviously not favorable for the currency but this is the patern we have today we had excesses and we had misallocations of capital between 2002 and 2007 , then in 2008 we had the financial crisis a period of deliveraging sets in and then the government come in and bailed out essentially companies that failed notably in the financial sector , and of course in the US the two biggest bailouts Fannie Mae and Freddie Mac which were government sponsored enterprises and in Europe they will have to bailout countries like Greece and this is basically a monetization and it leads to a loss of purchasing power of the paper money both for the U.S. Dollar and the Euro , now I believe that all paper currencies are not desirable t they will lose value , will the Euro lose more value than the dollar ? could be for sis month and then may be the US Dollar loses more value than the Euro we'll have a kind of a shift ...In General I think that the Asian currencies are in a reasonably good position to appreciate further as the Singapore dollar has recently done , i am less optimistic about the Australian Dollar and the Canadian Dollar because they are very tight into the commodities cycle ...you know if I expect the Chinese economy to slow down or even to have some kind of bursting of the property bubble then it will affect the demand of China for industrial commodities and that will be negative for Australia and Canada .....
International investing guru Marc Faber shares his thoughts on the fate of Greece as well as his view on the euro and other major currencies. Marc Faber is less optimistic about the Aussie and the Canadian dollar but he is bullish about the Singapore Dollar
The financial crisis has shown that speculation, funds, and credit default swaps create a huge amount of virtual wealth, but the real economic motor is driven by the manufacture of products using the earth's natural resources. The race is already on to control rare resources like lanthanum, scandium and thulium; essential for hi-tec but everyday products such as computers and mobile phones.Even without environmental regulations, China has more deposits. We simply don't know where the rare earth minerals are.What a coincidence how the U.S just happened to find those resources in Afghanistan! the regulations that restrict mining and exploration in the western/developed world, do not apply to the likes of the Democratic Republic of Congo (DRC) South America and China.
Fed Chairman Ben Bernanke gives a rare interview to Scott Pelley in which he discusses pressing economic issues, including unemployment, the deficit and the Fed's controversial $600 billion U.S. Treasury Bill purchase.
He knows what is coming down the line: civil unrest. Pelley failed to ask some hard follow-up questions like, "So do you think Congress will extend unemployment benefits for 'a protracted period of time'?" Not one word about why they exclude food and energy prices from inflation calculations. "Some people think the $600 billion is a dangerous thing to try." That would include members of the Federal Reserve. "Panic of 2008"? Only panic was at Goldman Sachs - will I get my bonus? Sure!At this point there's nothing to save this house on cards economy. This system encourages people to act irresponsible, taking on huge risks to overconsume. When you over-consume you take your future consumption away, and here we are out of money buried in debt. It needs a national chapter 11 to liquidate the debt in the system before it can truly recover. A few QE tweaks here and there ain't gonna cut it.
Marc Faber :"...I am still positive about economic growth in the emerging world. But what disturbs me at the present time is that in late August, sentiment was very negative worldwide and people said that Dow will drop to 1000 and so forth and so on. Suddenly now, the consensus is that you have to be in equities, you have to be in gold, you have to be in assets because central banks around the world will print money. That is correct, they will print money. But sentiment has become so universally bullish that about all assets, including especially emerging economies - in US dollar terms - are up. The Indian market this year is already up 19%, Malaysia 28%, the Philippines, Indonesia and Thailand each over 40%.
We already have big moves and I see all the brokers upgrading the earnings estimates and so forth. So I become a little bit apprehensive about this universal bullishness. I would rather think that after a strong month of September - when everybody was expecting September to be a horrible month - October and November may be bad months. In the past, October has frequently been a disastrous month like we had the October 1987 crash, we had the late September-early October 1929 crisis. In 1976 and 1978, we had very bad months in October and November. So who knows, out of this present bullishness, we could have some kind of a sharp correction developing. ..."
Marc Faber:"...In general, investors should one day have approximately 50% or more of their money in emerging economies. I have all my money in emerging economies for the money that they allocate to real estate and to equities. Of course I also have bonds in the developed world and also cash in on the developed world, but in general, I am very optimistic about the emerging economies. But that does not change the fact that over the last few months, in fact since April because I saw that April would be a high for the S&P at 1219, I have taken some money off the table because a correction is overdue. ..."
Marc Faber :"...We have high volatility in all markets, a 10% move is nothing now-a-days. We have very high intraday volatility in the markets. We had never before so many up days with volumes of 9 to 1 and down days with volumes of 9 to 1. The downward volume is 9 times the upward volume and on up days, the up volume is 9 times the down volume. This is most unusual. So we have this volatility and this volatility comes about because the private sector is basically still deleveraging while the government sector is leveraging up. So you have economic and financial volatility in markets that is very high. ..."
Marc Faber :"...I think that commodities have not only been strong recently, they have been strong for a long time, specifically precious metals. If you look at the Dow Jones in gold terms it peaked out in 1999, and is not down 84% in gold terms. In other words you can’t measure any thing any more in dollars because the function of money is to be among others a store of value and also unit of account, but if you print and print and print, the function of store of value expires or is non existent, and the unit of account doesn’t work anymore. So we need to take a new unit of account which is gold or silver and in those terms, the US economy has contracted massively since the year 2000 and the dollar has been very weak as well as the bond market and eh stock market in gold terms...."
Niall Ferguson : China Bail Out the EU , CNN's Fareed Zakaria and Niall Ferguson and the FT's Gillian Tett on the EU crisis and possible help from China.
Marc Faber :.....So actually, the US monetary policies have been very good for Asia, specifically for China because it fostered industrial production growth in China, employment growth, wage increases, domestic consumption, increased demand for raw materials, that then lifted commodity prices. For that actually the developing world, the emerging economies including China, India , Vietnam, Brazil and so forth should all send a thank you note to Bernanke......
Marc Faber : ...We have high volatility in all markets, a 10% move is nothing now-a-days. We have very high intraday volatility in the markets. We had never before so many up days with volumes of 9 to 1 and down days with volumes of 9 to 1. The downward volume is 9 times the upward volume and on up days, the up volume is 9 times the down volume. This is most unusual. So we have this volatility and this volatility comes about because the private sector is basically still deleveraging while the government sector is leveraging up. So you have economic and financial volatility in markets that is very high....
The University of Edinburgh Enlightenment Lecture Series with the support of ScottishPower presents Globalisation & the 21st Century Enlightenment by Joseph Stiglitz.
The Principal of The University of Edinburgh, Timothy OShea said: The University is delighted to welcome Joseph Stiglitz to speak as part of our Enlightenment Lecture Series. He is one of the giants of economics, his contributions across every part of the discipline are recognised the world over. He has already played a major role in shaping events in the worlds recent economic history, and now he is set to shape our future with his ground breaking theories on how globalisation needs to work for disenfranchised peoples worldwide. His lecture examining themes of global economics for the new millennium promises to be a fascinating insight into new economic theory.
Marc Faber:"...My principal criticism is that the Federal Reserve can drop dollar bills onto the United States from helicopters as Mr Bernanke says - not from helicopters but electronically they can print money. The criticism I have is that Fed can control the quantity of money quantity that it drops onto the United States. But they do not control where it will flow to and this money has flown through the American trade and current account deficit to emerging economies and this has boosted the growth rates in emerging economies and their currencies. So the benefit of expansionary monetary policies has not been felt in the United States, but in emerging economies and that is my main criticism.
Now what happens if so much money flows to emerging economies is that you get bubbles over time - currency bubbles, stock market bubbles, real estate bubbles. The question is then how do these emerging economies’ central banks react to that. The Brazilian Finance Minister has just said we are in the midst of a currency war, a foreign exchange war and the central banks of emerging economies have a choice to do nothing - then they have high domestic inflationary pressures with accompanying bubbles - or they tighten monetary policies and their currency becomes even stronger and you have a speculative bubble in the currency. So the Fed has put them actually in a very difficult position and I believe we are going to end up with bubbles in precious metals and to some extent in emerging economies’ real estate and equity markets and every bubble eventually bursts. It does not have to happen tomorrow. It could last another year, but the Fed is actually endangering emerging economies at the present time. ..."
Marc Faber :."...I think that commodities have not only been strong recently, they have been strong for a long time, specifically precious metals. If you look at the Dow Jones in gold terms it peaked out in 1999, and is not down 84% in gold terms. In other words you can’t measure any thing any more in dollars because the function of money is to be among others a store of value and also unit of account, but if you print and print and print, the function of store of value expires or is non existent, and the unit of account doesn’t work anymore. So we need to take a new unit of account which is gold or silver and in those terms, the US economy has contracted massively since the year 2000 and the dollar has been very weak as well as the bond market and eh stock market in gold terms..." ..... in a recent interview with moneycontrol
Marc Faber : "...Yes I think the criticism arises because we have too much of a good thing, in other words the Fed's monetary policies now lead to some kind of bubbles in emerging economies through capital flows. Now this incoming liquidities they can be absorbed in 2 ways, either like the currency appreciate sharply or you have domestic very high asset inflation or combination of the two. The problem is, with all this, that once the speculators see that said the Thai Baht, or the Malaysian Ringitt appreciates and that asset prices in those countries go up, they pile in even more and then you have even larger speculative bubbles,and excess liquidity and dropping dollar bills on the United States from helicopters like Ben Bernanke suggested, the problem with that is he doesn’t know where the money will flow and in this case, excess liquidity flows, into emerging economies and into precious metals and new bubbles are building up, that at some point in future, will burst and then you have another problem on your hands the way you had the problem of the Nasdaq bubble burst and the housing bubble burst...."in moneycontrol.com
Joseph Stiglitz on American banks The violations have been massive The Nobel prize-winning economist says banks are undermining the rule of law in America and bad mortgages still fester
Dec. 1 2010 | The Federal Reserveon Wednesday revealed the details of some $3.3 trillion in emergency loans it made to financial institutions during the credit crisis as mandated by a revamp of US regulations. CNBC's Steve Liesman has the details.
Marc Faber is out with his latest report which discusses his outlook for stocks, bonds, commodities, gold, and the dollar. Regarding the Gold in particular Marc Faber says that he still likes goldand continues to accumulate more gold , but he says a correction to $1200 would not surprise him. Gold bull market remains intact as the majority of individual investors and institutions remain under invested.
Marc Faber:..."...I think that commodities have not only been strong recently, they have been strong for a long time, specifically precious metals. If you look at the Dow Jones in gold terms it peaked out in 1999, and is not down 84% in gold terms. In other words you can’t measure any thing any more in dollars because the function of money is to be among others a store of value and also unit of account, but if you print and print and print, the function of store of value expires or is non existent, and the unit of account doesn’t work anymore. So we need to take a new unit of account which is gold or silver and in those terms, the US economy has contracted massively since the year 2000 and the dollar has been very weak as well as the bond market and the stock market in gold terms...."
"You don't want to short it here but for the longer period the euro is going much lower," "In a year and a half or two years it's really going to be a big mess." Charles Nenner, says.
Marc Faber :..."...the terminal value of the dollar is precisely zero, the printing cost of bank note that is the intrinsic value of the dollar. But it will not move there right away. since the formation of the federal reserve, in 1913, the price of gold has gone up from USD 25/oz to over US 1400/oz, In other words the value of a dollar bill has gone down by 97% in gold terms and it took more than a 100 years. Now the next time the value of the dollar declines by 97% won’t take a 100 years I think it will happen in 10-15 years." in www.moneycontrol.com
Nov. 29 2010 | The Euro is coming down against the dollar "based on the fact that the economy in the states is much stronger than in Europe," Charles Nenner, founder and president of Charles Nenner Research, told
CNBC Monday.
Marc Faber :.."What I think its important to understand the cause of the crisis, the cause of the crisis is excessive monetary growth leading to excessive debt growth, to the Nasdaq bubble, to the housing bubble that then led to overconsumption in the US and a symptom of over consumption in the country is always growth in trade deficit that then shifts production overseas because one trade deficit in one country is offset by trade surplus somewhere else. And to simplify matters lets say it was China.
So actually, the US monetary policies have been very good for Asia, specifically for China because it fostered industrial production growth in China, employment growth, wage increases, domestic consumption, increased demand for raw materials, that then lifted commodity prices. For that actually the developing world, the emerging economies including China, India , Vietnam, Brazil and so forth should all send a thank you note to Bernanke...." Marc Faber said in a recent interview with www.moneycontrol.com
Marc Faber:" As you know I have been very critical of the Federal Reserve for the last 20 years because the Federal Reserve with its expansionary monetary policies and without the policy paying attention to excessive credit growth created first the Nasdaq bubble and later on the housing bubble and in 2008 the commodities bubble. So I have been very critical of these policies for a very long time, including of course now QE2 as I was also skeptical about the success of QE1 for the simple reason that the Federal Reserve can control the quantity of the money.
In other words, Bernanke as he said and wrote the US can drop dollar bills from helicopters onto the US, but what they don’t control is where these dollar bills will flow to, and as it happens it went into bubbles in US creating over consumption, and symptom of overconsumption was then the trade and current account deficit that shifted production and capital spending overseas and shifted economic growth to emerging economies and now QE2 what it will do is essentially it will foster bubbles, in commodities, in precious metals and in the capital markets of emerging economies where the capital will flow to." in moneycontrol.com
Marc Faber, publisher of the Gloom, Boom & Doom report, said in a phone interview 19 Nov with Bloomberg Television speaking about Chinese economy ....:"....I think we already have a property bubble but it does no mean that the whole economy will go into recession , and I will add to it eve if there is a slow down in China it is a very large country like the US was in the 19th century and still is today , so you can have some sectors of the economy going into recession and other sectors still expanding.....
The clampdown on property speculation may prompt investors to turn to the nation’s stock market, Marc Faber said. Still, shares are “fully priced” and Chinese investors may instead become big buyers of gold via ET Now
The U.S. economy "is a complete disaster, "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."
Nov. 25 2010 | Since the Fed's announcement of QE2, Mark Mobius, executive chairman of Templeton Emerging Markets Group, has noticed a tremendous amount of inflow into emerging market funds. CNBC's Jackie DeAngelis asks if he's worried about bubbles being formed.
Matt Taibbi's latest piece focuses on the Rocket Docket court set up in Jacksonville to expedite a backlog of foreclosure cases in the state of Florida.... A top Treasury Department official said Tuesday that federal investigators looking into problems with mortgage foreclosures throughout the country have found widespread and “inexcusable” breakdowns in basic controls in the foreclosure process. “These problems must be fixed,” Assistant Treasury Secretary Michael Barr told members of the Financial Stability Oversight Council, the newly formed panel of regulators responsible for identifying potential risks to the financial system
“There’s no other way out but to print money,” “In the long run, all paper money will go exactly to its intrinsic value, which is zero.” Marc Faber, the publisher of the Gloom, Boom & Doom report, said at a forum in Seoul
Marc Faber in Bloomberg : ..."We already have a property bubble in China, but that does not mean that the whole economy will go into recession. And I would add to it, that even if there is a slowdown in China, its an huge country, like the US was in the 19th century and still is, so you can have a some sectors of the economy going into recession and other sectors still expanding."
"Everybody is trading on the inside somehow or another, so this isn't particularly surprising," Taibbi says. "A lot of sources I talked to suggested this is endemic to the entire culture.""The real issue here is that it's everywhere," he says. "And the fear is there's no end to it." Taibbi, who became widely known in financial circles in 2009 when he dubbed Goldman Sachs "a vampire squid on the face of humanity," says he is not cynical by nature. "But this Wall Street stuff is overwhelming," he says. "The more you look into it, the less you see the way out. The government seems so completely helpless to do anything positive in this situation." read more>>>>
Nobel LaureateJoseph Stiglitzshares his thoughts on the importance of education for the future health of our economy, and how we should take advantage of college access non-profits in order to leverage the effect of the stimulus package.
Joseph Stiglitz, University Professor, Columbia University, Nobel Prize in Economics, 2001, spoke on "A Half Century of Changing Perspectives on Development" as part of the Williams College Center for Development Economics' 50th Anniversary, October 2010. More on the event and CDE here: http://cde.williams.edu/50th-annivers...
NEW YORK (TheStreet) -- Matt Taibbi, author of Griftopia, says America is devolving into a thieves paradise because of the actions of "vampire squids" like Goldman Sachs and former Fed Chief Alan Greenspan.
Marc Faber recently in an interview with bloomberg said that anything less than $1 trillion From Bernanke could disappoint investors and might prompt a correction in U.S. stocks. Marc Faber, managing director of Marc Faber Ltd publisher of the Gloom, Boom & Doom report, and Barron's Roundtable member, anticipates meaningful market correction in 2010. Mining and agriculture will be top performers within commodity sector.Marc Faber is currently recommending agriculture commodities, and the accumulation of precious metals although he does no roll out some correction before the end of the year before the prices shoot up in 2011
Distinguished law scholar Elizabeth Warren teaches contract law, bankruptcy, and commercial law at Harvard Law School. She is an outspoken critic of America's credit economy, which she has linked to the continuing rise in bankruptcy among the middle-class.
Professor Elizabeth WARREN + Bill MAHER US USURY [excessive interest incorporated onto any debt].
Now the NEW WORLD ORDER message goes out to the World from the US
TRICK + TRAP + SCREW everyone else = the Corporation Benefits The US Citizen in the WEAKER bargaining position is ABUSED The US Corporation is identified as the STRONGEST bargaining position. Anything for the US Corporation to BOOST PROFITS - that's OK?
In 1979 USURY LAWS OF US WERE DESTROYED. INEQUALITY OF BARGAINING POSITION Whatever happened to the Judge as Independent Arbiter?
Or is the Judiciary now the representative of the Corporation - as FREEMASON co-optee?
Has the PUBLIC OATH of the Judiciary now been compromised by the PRIVATE OATH of FREEMASONRY?
Nobel Prize winner and renowned economist Joseph Stiglitz has been very pessimistic about the global economy in the new afterword to his book Freefall.
This video explains the basic effects of inflation of the money supply. I'll be putting together a video on Hyperinflation, hopefully before it happens.
NATS - Money Counting
"A solution being offered now to get the economy back on track was to dramatically increase the money supply"
0:10 Tim Shaughnessy - Professor of Economics - Louisiana State University
"So we had the T.A.R.P. bailouts, bailouts of the financial organizations and the car companies. All of this was done through printing of money"
NATS - Money Printing
"By printing more money means that eventually there's going to be more dollars out there chasing the arguably the same amount of goods which that's the definition"
0:28 Chris Combs - Professor of Economics - Louisiana State University
"of inflation right. When you have more money chasing the same amount of goods all it's going to do is raise the price of goods"
"Which provides dollars to these organizations that need it but what does it do to the value of the dollars that are already in exsistance? Well it's going to drive the value of our dollars down"
"We're looking at the big picture, and we are saying ok, we can fix the short term problem maybe. Depends on what camp you come out of whether it will work or not. But even if it does work, and it might not work, but even if it does, the problem is inflation tomorrow"
"On the one hand you have buyers increasing their demand for goods. They say to themselves, you know this goodis going to be a lot more expensive"
1:15 Joe Salerno - Professor of Economics - Lugwig Von Mises Institute
"Three months down the road, or even a few weeks down the road. That's how fast prices are increasing. And therefore I'm going to buy it today. But if everybody starts to think that way that will drive prices up even faster and cause greater inflation and it becomes a vicious cycle. At that point you get a breakdown in the economy"
NATS - Printing Reciept
1:37 Dr. Loren Scott - Professor of Economics - Louisiana State University Baton Rouge
"I think this is a functionof the fact that suddenly the government is running, not just deficits, but enormus deficits. People were very worried the deficits increasing under George Bush and they said my gosh. Look at these defecits under George Bush. I mean the 1st year defecit under Obama is just straight through the floor. And if by any stupid decision they decide to put another stimulus package in, it will really be through the floor"
NATS - Inflating the Dollar Baloon
"The dollar keeps being inflated"
NATS - Inflating the Dollar Baloon
"We are running these hudge budget defecits that we try to pay off through increasing the money supply"
NATS - Inflating the Dollar Baloon
"And so people are seeing that fiscal policy, monetary policy doesn't seem to be very well under control in the U.S. so the attractiveness of the dollar falls because of it"
NATS - POP
"We've continued on a path of false prosperity thinking that we can bring about prosperity by creating money and having artificially low interest rates. The true path that we want to get back to os a prosperity based on the resources that we do have and the voluntary savings and credit we are capable of generating in a free market economy"
______
Teaser information prior to this PKG
Tim Shaughnessy - Professor of Economics - Louisiana State University
"If they try to fix the recession it could lead to prices rising even more because the way that the government does it is by trying to increase its own spending and everyone elses spending. Either the government will just out right buy more things itself or it will give tax cuts, stimulus check or whatever to get consumers to spend more"
Chris Combs - Professor of Economics - Louisiana State University
"What's the payoff? If we fix the problem now but then we have to pay higher prices in the future how are we better off from that"
"The increase demandfor products from government or consumers leads to prices going up. So if you have a problem where inflation is an issue and you are trying to fix a recession, you could fix the recession but you are going to get even more inflation on top of that"
Dr Marc Faber was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager.
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