China has a trade deficit with Asia - Marc Faber

China has a trade deficit with Asia


Dr. Marc Faber Chairman of Faber Limited speaking to Mike Maloney about the chinese trade deficit with the rest of Asia , The dollar and of course Gold and Silver ....: ...what is happening is because the productivity in China has increased so much in the last couple of years they have become very competitive and so they have a growing trade surplus with the United States at the same time what has happened is if you look at the exports from Asia to the US then before in the seventies when China was still a communist country the big growth engines in Asia were Japan Taiwan and South Korea to some extent Honk Kong and Singapore these countries used to export to the US , now a lot of these countries are exporting components to China they are then processed in China and shipped to the United States , so whereas China has a growing trade and current account surplus with the US they have a growing trade deficit with the rest of Asia and of course because of the huge appetite for the raw materiel they have a trade deficit also with OPEC but you have to give the Chinese credit whereas the US has a trade deficit with OPEC over a hundred billion dollars the Chinese have a trade deficit with OPEC of only a 4 billion dollars because they're very good at selling goods to countries that supply them with raw materiel ....

Ben Bernanke Q&A

Federal Reserve Chairman Ben Bernanke Press Conference with Q & A .Fed Chairman Ben Bernanke takes questions on the FOMC decision, the fate of QE2 and the Federal Reserve's plan for dealing with the creeping inflation.



See the first-of-its-kind Federal Reserve press briefing. Ben Bernanke--Chair of the Fed, U.S. National Economic Planner, Manipulator of the Money Supply, Master of the Debased and Hopelessly Inflated Dollar, Taker of Purchasing Power, Mauler of the Mortgage Market, Great Enabler of Moral Hazard and Second-To-None Stealer of American's Savings---presumably felt the need to explain his stellar record to us. This guy is an all-star. Grab some popcorn

Ben Bernanke Federal Reserve Press Conference

Ben Bernanke Federal Reserve Press Conference . The full conference was an hour long, Bernanke speaks thew gold and silver prices soar , I love it ...we should thank this guy someday for making us richer just by opening his mouth....by the way I wonder where this guy lives , he keeps on talking about 'recovery' improving 'employment' rate ...etc...I am just speechless...

Catherine Austin Fitts - the next leg of housing recession has not even begun

Catherine Austin Fitts we have not seen a free market for long time we see a highly politicized economy , the next leg of housing recession has not even begun




Catherine Austin Fitts of Solari.com joins us to discuss ways that people can stop empowering the system that is enslaving them by withdrawing support for large banks and financial services. Former Assistant Secretary of Housing under George H.W. Bush Catherine Austin Fitts blows the whistle on how the financial terrorists have deliberately imploded the US economy and transferred gargantuan amounts of wealth offshore as a means of sacrificing the American middle class. Fitts documents how trillions of dollars went missing from government coffers in the 90's and how she was personally targeted for exposing the fraud.
Fitts explains how every dollar of debt issued to service every war, building project, and government program since the American Revolution up to around 2 years ago - around $12 trillion - has been doubled again in just the last 18 months alone with the bank bailouts. "We're literally witnessing the leveraged buyout of a country and that's why I call it a financial coup d'état, and that's what the bailout is for," states Fitts.

Ben Bernanke Press Conference

All Americans concerned about the money were glued to the tv set today when fed chief Ben Bernanke hosts a press conference. the first press conference ever by a chairman of the federal reserve.
Ben Bernanke :"It would be an extremely dangerous and very likely recovery ending event."

Marc Faber Maybe in gold terms, we could one day reach a ratio of Dow Jones to gold of 1-to-1

Marc Faber in a recent Interview with MacAlavany said : In a money-printing environment, it is very difficult to know what is actually cheap and what is expensive. Is the price of wheat high, or is it low? Inflation-adjusted,it is extremely low. In nominal terms, it is relatively high. I believe that, in March 2009when the S&P was at 666, the market was actually much cheaper than is generally perceived, because of the money-printing, and I do not anticipate that we will see 666 onthe S&P again, in nominal terms.In other words, they are going to print so much money that the S&P could be at, perhaps,2000, but in real terms, it could be down below the lows of March 6, 2009. Maybe in gold terms, we could one day reach a ratio of Dow Jones to gold of 1-to-1, as we were in1980. In other words, the Dow could be perhaps at 10,000 or 12,000, and gold could beat the same level.That is why I am advising people to accumulate gold. Can gold have a correction? Yes,there has been a little bit too much euphoria about gold, and we may have a correction,but I do not think we are in a bubble in the price of gold. In fact, I could make a case that gold, at this level of $1400 an ounce, is cheaper than in 1999, when I look at the unfunded liability growth of the U.S., at the credit growth of the U.S., and at the household growth, and at the money printing, and at all the wealth creation that happens in China and Russia.Just consider, when I started to work in the 1970s, it was said there were two billionaires in the world. One was Rockefeller, and the other one was Mr. Ludwig. Then in 1980there were, I think, six or eight billionaires. Now you have thousands of billionaires.The paper money has become of lower value, and in that environment, it is conceivable that actually stocks do not go down a lot, in nominal terms, but they go down inflation-adjusted, and not inflation-adjusted by what the government is publishing, but in inflation-adjusted terms, as John Williams points out. He says inflation is running at 8%per annum. I have it slightly lower, depending also on the household, whether you have children, or no children, and where you live, but I would say between 5-10% in America is probably a realistic figure, and between 8-12% in countries like India, China, Viet Nam.

Marc Faber on Inflation in China

in a recent interview with ET Now Dr Marc Faber gives his view on the Inflation in China : There are some question marks about the data published by China. My view would be that inflation in China is just about the same level as in India. In other words, it is much higher than what the government is publishing. So, real growth and inflation-adjusted growth is probably much lower than what they published. If you look at the bank lending rate and the deposit rate, we have a very negative real interest rate, in other worlds, interest rate adjusted for inflation. That leads inevitably to some kind of a bubble and every bubble bursts. Now, if you ask me when will the bubble burst, tomorrow or in three years, I do not know. I just say that it is a dangerous situation. Moreover, if you have very strong economic growth and the stock market does not perform well and China has been a really bad performer in 2010, then I would be a little bit careful about making large commitments to China.

Marc Faber on Negative Interest Rates

Dr. Marc Faber would vote for negative interest rates if it were possible."It means that the Fed will keep interest rates below the rate of cost of living increases essentially for as far as the eye can see. In that environment obviously cash and bonds are dangerous. They have to move into asset classes like equities, commodities, real estate, art and collectibles — anything that essentially cannot be multiplied at the same rate as paper money that is a subject to the printing presses of Mr Bernanke," he said in a recent interview with the Indian channel CNBC TV18

Money is losing its purchasing power

Marc Faber speaking with CNBC TV 18on last Monday : "The absolute level of interest rates doesn’t tell you whether there is tightening or not. In China, they increased the interest rates over the several times. But with inflation running at between 8-10% per annum and the deposit rate at 3.25%, money is losing its purchasing power if you keep it on deposit,"

Asset markets move up and down

"Asset markets move up and down and they go from a rising phase into boom phase. Then to a collapse and the people are gloomy and there is gloom and doom around and then the markets poke them out and then the whole process starts again," Marc Faber in a recent interview (11 Apr) with CNBC TV 18

The US dollar is in a contest for the ugliest currency says Marc Faber

Dr Marc Faber speaking to CNBC Monday said that eventually the Dollar will go to its intrinsic value namely ZERO and that for now we are in a contest for the ugliest currency : " well basically I do not think that people should punt on Gold but they should be their own central bank and gradually accumulate gold reserves as a currency and they should basically hold it physically but not in the US outside the US " " I think there is the risk that the US will once again as they did in 1933 collect the gold expropriate the gold they will not take away and not pay anything they'll pay probably the market price and after they will revalue it it by say five times "
Marc Faber : I think you are right in saying that we are in a contest for the ugliest currency , but I disagree with the fact that people are heavily positioned in Euros , I have a lot to do with very well to do people around the world , Latin Americans US citizens Europeans Asians i would say most of them have at least 70 to 80 percent of their money in US dollars now occasionally the market participants the speculators may be heavily in the Euro and negative about the US dollar but by in large there a huge over hand of US dollars globally and I'll tell you if people could sell their dollars and move to something they believed in they would do it , but I believe that the best currency is still gold and silver and this is not the perception of most people they think that gold and silver are speculative investments "
"I think that conceivably the US dollar here could rebound but I maintain my longer term projection , the value of the US dollar will be precisely its intrinsic value namely ZERO precisely ZERO , yes I told you two years ago and I still maintain that "

Marc Faber Full Interview with CNBC Asia 18 Apr 2011

Dr Marc Faber, editor & publisher of "The Gloom, Boom & Doom Report", was today interviewed by CNBC about the American budget deficit he offers his views on how to tackle the U.S. budget deficit, as well as how that is affecting his U.S. investment strategy. " I do not think that it is possible to reduce the deficit meaningfully unless you increase taxation significantly and unless you cut spending meaningfully , and there fore having the Democrats on one side o the Aisle and the Republicans on the other I do not believe that they will compromise , i think the debt ceiling will be increased yes , but I think the deficit will stay around minimum one and half trillion dollars for the foreseeable future "




Marc Faber " well basically I do not think that people should punt on Gold but they should be their own central bank and gradually accumulate gold reserves as a currency and they should basically hold it physically but not in the US outside the US " " I think there is the risk that the US will once again as they did in 1933 collect the gold expropriate the gold they will not take away and not pay anything they'll pay probably the market price and after they will revalue it it by say five times "
Marc Faber : I think you are right in saying that we are in a contest for the ugliest currency , but I disagree with the fact that people are heavily positioned in Euros , I have a lot to do with very well to do people around the world , Latin Americans US citizens Europeans Asians i would say most of them have at least 70 to 80 percent of their money in US dollars now occasionally the market participants the speculators may be heavily in the Euro and negative about the US dollar but by in large there a huge over hand of US dollars globally and I'll tell you if people could sell their dollars and move to something they believed in they would do it , but I believe that the best currency is still gold and silver and this is not the perception of most people they think that gold and silver are speculative investments "
"I think that conceivably the US dollar here could rebound but I maintain my longer term projection , the value of the US dollar will be precisely its intrinsic value namely ZERO precisely ZERO , yes I told you two years ago and I still maintain that "

Marc Faber on How to tackle the U.S. budget deficit

Dr Marc Faber, editor & publisher of "The Gloom, Boom & Doom Report", was today interviewed by CNBC about the American budget deficit he offers his views on how to tackle the U.S. budget deficit, as well as how that is affecting his U.S. investment strategy. " I do not think that it is possible to reduce the deficit meaningfully unless you increase taxation significantly and unless you cut spending meaningfully , and there fore having the Democrats on one side o the Aisle and the Republicans on the other I do not believe that they will compromise , i think the debt ceiling will be increased yes , but I think the deficit will stay around minimum one and half trillion dollars for the foreseeable future "

Marc Faber : US could expropriate Gold

Marc Faber, editor & publisher of "The Gloom, Boom & Doom Report" talks about his preferred ways to invest in gold  " well basically I do not think that people should punt on Gold but they should be their own central bank and gradually accumulate gold reserves as a currency and they should basically hold it physically but not in the US outside the US " " I think there is the risk that the US will once again as they did in 1933 collect the gold expropriate the gold they will not take away and not pay anything they'll pay probably the market price and after they will revalue it it by say five times "

Marc Faber : the best currency is gold and silver

Dr. Marc Faber discusses with CNBC on 17 Apr 2011 the outlook for the U.S. dollar and how that will impact the price of gold and silver. Marc Faber editor & publisher of "The Gloom, Boom & Doom Report" : outlook for the U.S. dollar and the impact on gold and silver prices
Marc Faber : I think you are right in saying that we are in a contest for the ugliest currency , but I disagree with the fact that people are heavily positioned in Euros , I have a lot to do with very well to do people around the world , Latin Americans US citizens Europeans Asians i would say most of them have at least 70 to 80 percent of their money in US dollars now occasionally the market participants the speculators may be heavily in the Euro and negative about the US dollar but by in large there a huge over hand of US dollars globally and I'll tell you if people could sell their dollars and move to something they believed in they would do it , but I believe that the best currency is still gold and silver and this is not the perception of most people they think that gold and silver are speculative investments "
"I think that conceivably the US dollar here could rebound but I maintain my longer term projection , the value of the US dollar will be precisely its intrinsic value namely ZERO precisely ZERO , yes I told you two years ago and I still maintain that "

Joseph Stiglitz on a global reserve currency

Joseph Stiglitz on a global reserve currency


Joseph Stiglitz is a Nobel Prize winning economist, Columbia University professor, and former Senior Vice President and Chief Economist of the World Bank. In this interview at INET's Bretton Woods conference in New Hampshire he explains why he thinks the US dollar as the reserve currency is hurting the entire world economy
Joseph Stiglitz : What I've argued for is a creation of a global reserve currency. Reserve currencies are, you might think of a store value and the dollar has been very unstable , understandable given the difficulties of the American economy, our performance was not a stellar. But the fact that in a modern globalized economy, 21st Century, it is an anachronism that a single currency would play the pivotal role that the dollar has played. What I argue in my book "Making Globalization Work" is that the dollar reserve currency system contributes to inequality ... and it actually contributes to the weakening of the global economy, because countries are setting aside literally hundreds of billions of dollars, you might say, of precautionary savings. That's money not spent.

Marc Faber about The bond market and what should the FED do to save it

Dr. Marc Faber answering a question from radio host MacAlavany about measures might the Fed and the Treasury employ to defend the bond market had this to say : ..."..I think they do not necessarily want to support the bond market, because the debt issuance is so huge, they almost have to monetize part of the debt. I have read Treasury reports in 2010 by Tim Geithner saying the U.S. government debt increased by more than 2 trillion dollars during that period of time. The deficit, in my opinion, mathematically,cannot come down, because 80% of the budget is mandatory expenditures, in other words, you cannot cut them. Legally, they have to be met.Of the remaining 20%, you can cut a little bit, but not that much, because then services collapse. In my view, the fiscal deficit of the U.S. will stay around 1½ trillion dollars for as far as the eye can see, and maybe even go to 2, or 2½ trillion dollars, and then the interest expenditures on the debt go up. So actually, over time, in my view, unless taxes are increased significantly, and spending is cut significantly, not by a little bit here, a little bit there, the budget will never again be balanced, and that will then necessitate, in time, QE-III, QE-IV, and QE-V. Taxes cannot be increased dramatically, because if you increase them very substantially, we will go straight back into a recession..."

Joseph Stiglitz on Carbon Emissions

Joseph Stiglitz is a Nobel Prize winning economist, Columbia University professor, and former Senior Vice President and Chief Economist of the World Bank he thinks equal per capita emission might just be the best idea of an equitable global solution for climate change.: ...first of all the notion that you need that prices are very important for giving the signals about scarcety , scarcity is limit of space you might see the carbon space out there and therefore you need to price that , you need to price in fact people use of that carbon space , I think most economists would agree with that , there is an issue here which is how you compensate people for either past damages to maintain their standard of living there is a set of issues about compensation that are really quite different , and I think it is quite important to try to separate out this issue of how do we got inefficient usage of an inefficient system of reducing carbon emissions and this other one of how do we compensate people for the changes that are going on ......


Joseph Stiglitz on Carbon Emissions

Inflation seriously on the rise , no matter how you slice it

Inflation is seriously on the rise , no matter how you slice it says Kudlow and he explains why with charts and numbers


We are talking about the Bernanke sea of liquidity, gold, silver and oil prices rising today. i submit we have an inflation problem in this country says Kudlow we have more evidence coming out today with the producer price report. " no matter how you slice it, inflation is seriously on the rise. I have looked at this thing left, right and center. first of all, we are going to measure this. ppi went up 0.7% today. on a three-month basis we are holding. this is not good. we are now holding at around 12% to 13% at an annual rate over three-month periods. this is not good. we were down around 0% a year ago. you can see the move. you can see the move. this is the total ppi. next up. you want to look at the core ppi? you want to be dumb enough to take out food and energy prices? fine. check this out. same story. three-month annualized rate. we are running now at about 4.5%. this is excluding food and energy which is a dumb thing to do. business is at wholesale pay food and energy prices for their inputs, whatever it is they are doing. here we are again. the core ppi. now, next up, inside the producer price index, a lot of people missed this. consumer goods. consumer goods component feeds right into the consumer price index on the cpi. and here, too, look at the upward turn. we are now running about 15%, 16.5% for the latest three months including march. today consumer goods are up 0.8%. this goes into the cpi. " says Kudlow

Marc Faber : Precious Metals are still Cheap

Marc Faber : “Some pundits will argue that precious metals are expensive, but this isn’t my view. Why would anyone not own some gold, rather than US dollars, when interest rates are near zero? Dollars can and will be printed en masse, whereas the supply of precious metals is extremely limited.”


Dr Marc Faber author of the Gloom Boom and Doom is an international investor well known for his contrarian investment approach. He is also associated with a variety of funds including the Iconoclastic International Fund, The Overlook Partners’ Fund, The Income Partners Global Strategy Fund, The India Capital Fund, Matterhorn Ventures, Winstar India Investment Company Limited, The China Mantou Fund, Sofaer Capital Inc, Peach Office Products, Ivanhoe Mines Limited, Equity Partners Limited and Muse Global Partners LP

Jim Chanos vs El-Erian on China 's Economic outlook

Jim Chanos , the founder of Kynikos associates with Mohamed El Erian on the Squawk box CNBC 14 April 2011 he says Healthcare is still the problem , Jim also sees slowing growth in China and China's property market he also speaks about alternative energy and argued with Mohamed El-Erian on their different views on China soft landing or hard landing



Jim Chanos :."... Healthcare is still the problem. at the end of the day, if you look at all of the budget talk and all , if we don't go after health care, we're not going to solve any of these problems. we still devote twice the GDP to health care that the rest of the OECD , the rest of the developed does with worse outcomes. there is no more logical argument than that to take a hard look. but this reform didn't do it. "

"... if Healthcare continues to grow at 6 or 7% above the real rate of the economy, every 10 to 12 years it will double. that means in about 15 years or so, half of us will be doing operations on the other half of us. that's not going to happen. something's going to give." "to go to the other end, a nationalized health plan. something has to happen. the problem that we have in this area is that so much federal funding, i mean health care whether we want to believe it or not is still half socialized in effect. federal and state governments pay for pretty much of health care expenditures. whether we want to believe it or not, we're almost sort of the way there, but it's the worst of all worlds. it's government payments without any accountability. and this is going to break us. so something's going to give. and i just don't know which way it will go."


regarding China's property bubble Jim has this to say : " I think if we're wrong about china in terms of the property bubble there, that that continued demand could keep things going, you know, demand for commodities, demand for construction materials. they are sucking in basically everything on the margin is china. and if they just keep putting up high rises, this could go on for a while." "that is the hope. you know, first the argument was there was no bubble. now the argument has sort of morphed i think into more serious policy circles in china. well, we will let the air out slowly."

Joseph Stiglitz : Most Americans are worse off than say a decade ago

Joseph Stiglitz : Most Americans are worse off than say a decade ago



Joseph Stiglitz : The point I increased the increase of concentration of income and wealth in the United States has been enormous , it is like looking at the grass growing it happens very slowly but it happens over time and before you know it the lawn is over grown and things have changed , what happened in the last couple of decades is almost a quarter of all the income goes to the upper one percent around 40 percent depends how you measure it of the wealth goes to the upper one percent , Americans used to think of themselves as the land of opportunity , the data do not show that , the data shows that the chance of somebody moving from the lower class to the middle class or from the middle class to the upper class these chances are now much lower than they used to be 20 years ago and lower than in Europe , they start to realize that Most Americans are worse off than say a decade ago

Joseph Stiglitz : The GDP not a good measure of economic performance

Joseph Stiglitz : The GDP not a good measure of economic performance



Joseph Stiglitz : ...what we measure reflects what we do , if we measure the wrong things we'll do the wrong thing , if what we measure does not reflect our values what we think it is important we're doing the wrong things , so there've been a lot , a recognition that our system of GDP does not really reflect in many ways , is not a good measure of economic performance , let me just give you a couple of examples that were brought up by the crisis , GDP in the years before the crisis looked i the US like we are doing very well 46% of the profits were in the financial sector but those profits were just a made up number , a large fraction of the investment was in the real estate all based in public prices again not an accurate reflection what we were doing was not sustainable , that was not captured in the statistics while GDP per capita was going up most Americans were getting worse off , is that a good system ? if most people are worse off year after year even if GDP per capita was going up ? so what we thought it's important is at least to open up the discussion on say are our statistics really capturing what we think is important ....

Marc Faber : Ben Bernanke is a Murderer of the Working & Middle Class

Marc Faber : Ben Bernanke is a Murderer of the Working & Middle Class


Max Keiser and co-host, Stacy Herbert, of the Keiser Report quote Marc Faber saying that Ben Bernanke is a murderer of the Middle and working class he said the same thing by the way during his interview two days ago with the Peter Schiff Radio , if you print money everything goes up and now the money printing does not go into the housing because e have an oversupply of housing but it goes into equities and for Mr Bernanke unfortunately into commodities and this is lifting the cost of living of the median household of the typical household in The US , Dr. Marc Faber was quoted as saying by Max Keiser and Stacey Herbert

Marc Faber on Peter Schiff Radio Show - 04-11-2011

Dr.Marc Faber interviewed by economist Peter Schiff explains why he believes that USA runs the risk of inflation rather than deflation , and how the case for United States and japan are very different , American can always pay its bills but in depreciated dollars , in theory the FED can monetize all new issues but obviously when that happens then the bonds market is toast anyway and when interest rates in the US will go up the interest payment on the government debt as a percentage of tax revenues will go up and so the fiscal deficit will actually never come down but rather go up in my opinion says Dr. Marc Faber so I think that the US has boxed itself into a very unpleasant situation "The US Dollar is really the worst of all possible currencies in the world " the second worst is probably the Euro but the US is the champion says Dr. Marc Faber

Joseph Stiglitz on Globalization

Joseph Stiglitz on the Globalization and the problems facing the global economy..



American economist and a professor at Columbia University Nobel Prize-winning economist Joseph Stiglitz author of "Globalization and Its Discontents" Joseph Stiglitz was chief economist at the World Bank until January 2000. Before that he was the chairman of President Clinton's Council of Economic Advisers. He was awarded the Nobel Prize in economics in 2001. He is currently a finance and economics professor at Columbia University. He is the author of Globalization and Its Discontents and The Roaring Nineties.he talks about his new concept of economics, "The Economics of Information," and his latest book, "Making Globalization Work" Stiglitz is the greatest economists of the present day, and everyone should read his stuff, Making Globalization Work and Globalization and its discontents are both very good.Joseph Stiglitz simply and eloquently explains how the world's economy works. Drawing not only from his academic expertise but also from time spent on the ground in countries around the world .

Dr. Steve Keen the causes of The Global Financial Crisis

Dr. Steve Keen the causes of The Global Financial Crisis



The Global Financial Crisis: Causes and the Islamic alternative. This event was organised by Hizb ut Tahrir Australia and held at the Law Theatre, University of New South Wales, on the 24th of October, 2008.This video is the first talk, on the causes of the Global financial crisis. Speaker: Dr Steve Keen - Associate Professor, University of Western Sydney, and well known economist .The financial system has already crashed but most governments around the world are in denial about it.The response by most debtor nations has been to create another bubble instead of facing reality. Their doing this by printing more money out of thin air with no value to it flooding the marketplace with cheap credit enticing people to take on more debt so they can get re-elected. But we don't need more debt we obviously already have enough cars and investment properties we don't need anymore

Marc Faber : Gold is still underowned

Marc Faber on Goldseek Radio - April 6, 2011

Yemen could become a trouble spot says Dr. Marc Faber : ...I think that the civil war in Libya can escalate because who knows may somebody around the world will support Gaddafi it's not Cristal clear that he will be all the time by himself secondly and more worrisome is probably Yemen where you have essentially a vicious leader as bad as Gaddafi and you have an opposition that is hostile to both the US and Saudi Arabia and that could become a trouble spot because strategically Yemen is of course much more important than say Libya .."

Natural gas price are very depressed right now says Marc Faber ...investors should gradually and every month buy some gold but it may also probably undergo a correction at some point ...Gold is still under owned it is not in a bubble ....

Gonzalo Lira : Why hyperinflation is coming to the US

Gonzalo Lira on The Financial Sense Newshour Apr/09/2011

Gonzalo Lira : ....there will be no buyers for these treasury issues that are going to be necessary to finance this tremendous deficit so this talk that QE2 is going to end prematurely is all baloney , there are simply no buyers , China is not buying nor is Japan which has to deal with its own problems , the only buyer out there is the Federal Reserve , Gonzalo Lira believes that when QE2 is going to end in June it is going to be somehow extended they are going to have because there simply no buyers.....we should instead cut military spending , these two wars are pointless says Gonzalo that will be real deficit reduction..

Marc Faber : Everybody wants to rip off the system in America

Marc Faber : ".... it depends whose misery. i mean, it would take me a very long time to go into details. but basically today, actually in the u.s., it's not an issue between democrats and republicans because this are many democrats who are well-to-do people and there are many republicans who are not so affluent. it's a question of essentially entitlements, the majority of people obviously is not particularly well to do, so they want larger and larger entitlements, transfer payments and work less. and the people that have money are the ones that usually work very hard, and they don't want to have transfer payments. so the people that have the money say that 10% of the population that is affluent in the u.s. or maybe just 5% of the population, they are outnumbered by the poor people. and therefore they have essentially no votes. so the one way to get back at the masses that all get these entitle systems to prints money and entitlements is to print money. by printing money and outsourcing production to china, you disenfranchise the working class,and by printing money then asset prices go up. could be real estate, stocks, commodities, whatever it is. and so your asset value increases dramatically, and there is wealth disparity that is increasing. ..."... it's not conspiracy. but look, if you clearly think about it, if you are well to do in the united states, you is exactly the same vote as someone who doesn't want to work, that is born illiterate. because in America close to 50% of babies are born to women that are not married. and most of them are actually poor. so w what kind of education these people will get? you have to ask yourself. they have the same vote than someone who has, say, influence, and affluence and has worked very hard all his life. these guys who worked very hard to say to themselves has the system is cheating us. we're going to cheat the system, as well. "...."it's a ver complex issue."
" what i really wanted to say is the tragedy is that the system has become dysfunctional. and the other day cnbc interviewed Mike Steinhart. he said it exactly the way it is. he said we're not living in the America that America used to be. some think changed along the way. and everybody wants to rip off the system. and that leads then to essentially and has also been encouraged by money printing. but basically the well-to-do people in America, they benefit from money printing, as well as elsewhere in the world because they can shift their assets overseas. the ordinary man doesn't have that potential."

Marc Faber Gold cheaper today than it was in 1999 at $252

Marc Faber CNBC Interview 08 Apr 11

Only the Federal Reserve does not acknowledge the existence of Inflation , In Gold and Silver Terms the Dow Jones over the last ten years has already lost over more than 80% of its value says Dr. Marc Faber , Gold is not in a bubble matter of fact it is cheaper today than it was in 1999 when it was at $252






Marc Faber : "....well, i think that asset markets move up and down, and they go from a rising face into a boom phase and into collapse and then people are gloomy. and there is gloom and doom around, and then the market bottom out. and then the whole process starts again. so i think as an investor you have to realize occasionally markets are overvalued, and occasionally they're undervalued. "

"well, i think in general if you have sound money, then money's a medium of exchange, unit of account, and the store of value. but if you read, say, what Janet yellin said, she's now vice chairman of the fed, that if it were possible to take interest rates into negative territory, i would be voting for that. it means that the fed will keep interest rates below the rate of cost of living increases essentially for as far as the eye can see. and in that environment, obviously cash and bonds are dangerous. they have to move into asset classes like equities, commodities, real estate, art, collectibles, anything that essentially cannot be multiplied at the same rate as paper money. that is subject to the printing presses of mr. bernanke. "

" not at all because between june, 2004, and august, 2006, the fed increased the fund rate to 5.25%. there was never monetary tightening occurring because the cost of living increases and nominal gdp was increasing at the faster rate. the absolute level of rates doesn't tell you whether there's tightening. in china they've increased interest rates several times. but with inflation running at, say, between 8% and 10% per annum and the deposit rate at 3.25%, money is losing its purchasing power if you keep it on deposit. so i think in the u.s. you will have a similar process. one day they'll increase it by a quarter percent. but what i mean, when commodity prices are going through the roof, energy prices are going up. health care cost are going up. insurance premiums are going up. everything is going up. only at the federal reserve is there no inflation. it's a bitter situation".

" ...In Gold and Silver Terms   the dow jones over the last ten years has already lost over more than 80% of its value. and yesterday, my friend frank holmes was on cnbc, and i don't know remember if it was you or somebody else, but the two interviews were kind of ridiculing him, telling him that gold was a bubble and so forth. i just came now from a conference. there were over 200 people here in Singapore. i asked the audiences, fund managers, you would imagine that they are intelligent. i asked them who of you has personally more than 5% of their assets in gold. not one person lifted their hand. not one. if it were a bubble, a lot of people would have gold. the whole world would be trading gold 24 hours a day. but i don't think it's really a bubble. i think maybe gold is cheaper today than it was in 1999 when it was at $252. "

Marc Faber on Goldseek Radio - April 6, 2011

Dr. Marc Faber editor and publisher of the gloom boom and doom report was a guest to Goldseek radio on April 06 2011 , he says that the FED may eventually announce QE3 but not right away in June when the QE2 ends , the inflation rate in the US is much higher than what he government is publishing ...Gas price are still depressed , Gold may see a correction at some point...Gold is not in a bubble it is rather under owned by most investors ...


Marc Faber :" ...My feeling is the FED it will complete QE2 , in June it will be finished and that after it they will be waiting to see how the bonds market reacts to less purchases or no more purchases of the treasury bonds by the FED , because it's not evident that the bonds market will necessarily go down because of the withdraw of QE2 because last April in April 2010 we had the end of QE1 and after that the bonds market actually rallied until August so the FED may not immediately announce QE3 but I think eventually it will happen , and concerning rates they will make sure that the FED fund rate stay below the rate of inflation and as you know the rate of inflation in the US is much higher than what the government is publishing "

Joseph Stiglitz : Of the 1 Percent, by the 1 Percent, for the 1 Percent

Joseph Stiglitz : 1 Percent of the US takes the Income of 25 Percent " the point is that there has been this growing inequality not only in income but actually inequality of wealth is even much greater , there is a shrinking of opportunity it's not just that the people on the top are getting richer , if they were getting richer because they were contributing more to our society and everybody else was doing well that will be one thing but actually they are gaining and everybody else is decreasing in fact right now it is not just the bottom but even the middle , the median income half above half below are poorer today than they were half a decade ago , so all the growth that has occurred in our country in the last decade or more has gone to the upper 1 , 2 percent at the same time there is really shrinking opportunity ...."

Paul Krugman Explains QE2

Economist Paul Krugman explaining QE2 Quantitative Easing 2 at Haverford College speaking event.
"...I was asked what's the FED is doing when it goes out and buys long term bonds , so what it is really doing is buying long term bonds and selling short term bonds , it is using bank reserves which are in effect short term claims on the US Government , or in some cases it is actually selling off it's holding on short term treasuries to buy long term bonds , meanwhile there is the treasury setting out there that is having a bunch of debt some of it long term debt , in effect the federal reserve is building up that short term debt and paying down some of the long term debt , so what's happening is QE2 is basically a reduction of the maturity of federal government debt and I think it works out as something like ten months of the maturity the average maturity of the federal government debt ...."

David Rosenberg sees QE3 coming

Well known economic bear David Rosenberg, chief economist at Gluskin Sheff & Associates, David believe that the real unemployment rate is actually closer to 12 percent than 9 per cent , the rising consumer spending is mostly due to the rising inflation in food and fuel , David believes that there are great chances that the FED will announce a QE3 may be this sumer or in a year from now....




“When it comes to the stock market as an asset class, in the past two years, there has been an eighty eight percent correlation between the movements in the Feds balance sheet and the direction of the S&P 500.” So, will the Fed inflate the money supply in perpetuity? This could be ugly. I know that I am not going to get on the wrong side of this bubble!

Joseph Stiglitz for Full Employment as an Entitlement

Nobel Laureate Joseph Stiglitz is for a full employment as an "entitlement" and a government responsibility for the workers , :" ...we need social protection ,... workers eventually can't control the economic environment , you know in the old economy , agricultural economy you could work your field you're still buffeted by vagaries and the weather international prices but you can always get a job because you could always work your own field , but in a modern economy if firms are firing you have no choice there are very limited opportunities that the individual has , so it is the responsibility of the state the government to maintain the economy and ful employment and we recognize that ion the Full employment act of 1946 unfortunately we are not living up to the commitment we made in 1946 to maintain the economy and the full employment , we have one out of six workers that are unemployed and increasingly large number are unemployed right now for over six months ..."

Rick Santelli Reacts to Ben Bernanke speech on Inflation

Rick Santelli reacts to The Fed Chairman Ben Bernanke speech last night in Stone Mountain, Georgia. where Ben Bernanke downplays the inflation fears , Bernanke said he believes the :..."...the inflation increase will be transitory then it will pass and go back to a point of inflation that is consistent with our price stability mandate. and that being said, we have to monitor inflation. inflation expectations extremely closely because if my assumptions prove not to be correct, we would certainly have to respond to that and ensure that we maintain price stability in the united states." Ben Bernanke said , Rick Santelli does not agree and says the debate will continue....Rick Santelli. He is the brave one standing, saying "the emperor has no clothes"

Mark Mobius Investment Strategy

Mark Mobius, executive chairman, Templeton Emerging Markets Group, discusses with CNBC his investment strategy : Mark Mobius said that a good investment strategy is not to look at what happens today but at what is likely to happen in five years. Stocks are a relatively safe place to be as inflation fears mount : "As you know, equities are one of the few investments that you can make that are going to adjust to inflation," he said "There's always inflation. No currency will hold its value. Not even the Swiss franc " he added.

Marc Faber Real Estate is a bargain in the US

Marc Faber says that Real estate is a bargain now in the US it may not go up in value but it will at least preserve its value, but not in China and Hong Kong where a possible real estate bubble is developing
"…if you can find a house you like, it may not be a bad time to buy a house in the U.S. It may not go up in value, but it may preserve its value...." Marc Faber said recently

Marc Faber on the insider selling

Marc Faber : "....I would just like to say about the insider selling, this is also something that I follow and that concerns me. But having said that, and being on the boards of different companies, let me explain to you what happens. Let’s say I am on the board of a company and I get stock options, and I exercise the stock options and then to diversify, I may sell some of the shares I own in that company through my stock option plan, and then I may go and buy other stocks in the market, or make other investments.Because of the proliferation of option plans in the last twenty years or so, there is a natural tendency that when a CEO sells shares, it is reported, but when he invests with hedge fund management, or buys shares in other companies, it is not reported. I think there has been a change in the validity of this statistic. But I agree with you, at the present, the ratio is so huge between selling and buying, that it is a rather negative indicator. Then, when you combine that with other indicators that are also negative, a hugely over-bought market, for instance, I think some caution is in order..."
 in a radio interview with MacAlavany

Expect QE3 but not right away : Marc Faber

Marc Faber, publisher of the Gloom, Boom & Doom talks to Bloomberg March 30
Marc Faber, publisher of the Gloom, Boom & Doom report is in Mexico City to speak at an event entitled "When everything else fails policy makers can always be assured of immortality by making spectacular errors " Marc Faber says to expect QE3 from the FED but not right away , regarding the spectacular errors of policy makers Dr. Marc Faber had this to say : " ...well I think the big error is obviously to print money , I think it does not help in the long run , it can give a temporary boost to economic activity but it does not lead to sustained economic growth in fact it creates a miss-prizing of assets and of goods and services and has negative implications on the prize mechanism in other words say you print money that can be done but the central bank or in the case of the US the Federal reserve what it can't know is where the money will flow to , so it flowed to NASDAQ stocks before march 2000 and into the housing market and created a bubble and in 2008 as the economy went into recession we had a commodities bubble , oil went from the day they cut interest rates in September 2007 to July 2009 all the way from $78 to $147 which was like an additional tax on the US consumer to the tune of 5 billion dollars and lately the money printing in the US hasn't really helped much the assets that the FED would like to boost namely housing but it created other bubbles overseas in currencies and again in commodities to some extent " ...regarding QE3 Marc Faber says :" for sure there will be QE3 but not right away , I think the FED believes that the economy is recovering and some sectors of the economy are actually doing quite well overseas we have strong growth in particular in emerging economies like here in Mexico the economy is doing very well at present time , so I think they will do QE3 , and my view is they will do QE3 , QE4 QE5 until QE26 until the whole system breaks down , and obviously the question is how fast they will do and to what extent the stock market has already expected this QE3 or the end of QE2 , as is QE2 is now fully discounted I do not think that the market will go up significantly , in fact I think that the FED would like to see stocks correcting somewhat ahd then have an excuse if stocks are down 20 percent that we need QE3 ..."