In his gloomiest
prediction yet, Marc Faber sees big financial bust leading to
the Swiss fund manager and Gloom Boom & Doom editor,
said eventually there will be a big bust and then the whole credit
expansion will come to an end. Before that happens, governments
will continue printing money which in time will lead to a very
high inflation rate, and the economy will not respond to continued
at a conference in Singapore on Wednesday, Faber said: "The
crisis has not solved anything. On the contrary there is less
transparency today than there was before. The government's balance
sheet is expanding, and the abuses that have led to the one cause
of the crisis have continued".
think eventually there will be a big bust and then the whole credit
expansion will come to an end," Faber added.
that happens, governments will continue printing money which in
time will lead to a very high inflation rate, and the economy
will not respond to stimulus".
In one of
his Gloomiest predictions, Faber, referred to as Dr. Doom, said
"the average family will be hurt by that, and then in order
to distract the attention of the people, the governments will
go to war".
ask me against whom? Well, they will invent an enemy," Faber
some stage, somewhere in future, we will have a war that
you have to be prepared for. And during war times, commodities
go up strongly, said Faber.
you want to hedge against war, you don't want to own derivatives
in UBS (UBS) and AIG (AIG), but you have to own them physically,
like farmland and agricultural commodities. That is something
to consider for you as a personal safety and hedge. You have to
own some commodities," he added.
of Ideas From the Article
There will be another war and it will be against an imaginary
I certainly agree the next war will be against an imaginary enemy.
Nearly every war is against an imaginary enemy and/or of no vital
interest of the US.
I, Korea, Vietnam, and Gulf War II were all needless. World War
II was a direct result of World War I. The War on Terror is preposterous.
Terror is a method. Waging a war on a method against an enemy
that has no real country is bound to fail and waste a lot of money
As for where
next, given President Barack Obama's saber rattling against Pakistan,
that's one place to keep an eye on. Iran is another.
The S&P 500 and the Dow Jones will go down relative to gold.
the rest of the article