Posted on 11/24/2012 6:46:04 AM PST by daniel1212
Marc Faber, publisher of the Gloom Boom & Doom Report, is well known for his ultra-bearish commentary. But he's not without reason. In a new presentation given in Hong Kong to the London Bullion Market Association, Faber offers a thick stack of 44 charts that makes him very bearish on the global economy (via ZeroHedge). They include overviews of the emerging and evolving trends on debt, trade, stocks and commodities.
Faber points to the explosion of public and private debt and how they have been far outpacing GDP growth for the last 50 years. In this backdrop, the wealth gap between younger and older Americans have been widening. Overseas, China has seen its economy boom on expansionary monetary policy, which has turned the world's second largest economy into a giant credit bubble. Considering all this, he offers two investment strategies: "aggressively shifting from one asset class to another" or "achieving safety though diversification.
(Excerpt) Read more at businessinsider.com ...
Links to 5 charts out of 51 which I find of most interest (which they probably would not want me post here):
http://static.businessinsider.com/image/50afd6546bb3f7fa4b000022-915/slide-81.jpg
http://static.businessinsider.com/image/50afd650ecad044260000025-915/slide-111.jpg
http://static.businessinsider.com/image/50afd64cecad048e64000024-915/slide-131.jpg
http://static.businessinsider.com/image/50afd65369beddb970000028-915/slide-101.jpg
http://static.businessinsider.com/image/50afd6456bb3f7204e000005-915/slide-161.jpg
That is an astounding image!
More $tats in this section: http://peacebyjesus.witnesstoday.org/RevealingStatistics.html#15
To play devils advocate - suppose I were to say
“If everyone’s broke, then no one’s broke”.
Where’s the logical fallacy?
I don’t have the answer - I’m truly just asking the question.
The farce will keep going for quite some time because, as the author states, ALL the Central Banks are playing the same game. The Powers-That-Be all have the same fundamental goal: stave off social upheaval.
• For the West (including Japan): Too much debt, too many promises, and too high a standard of living. Aside from Germany and Japan, there is not enough industry to provide a living for everyone. So the Government has a bigger and bigger role in employment and entitlements keep the rest of the population fed & docile. They play along because if there will be massive social upheaval if Government spending is actually cut to sustainable levels.
• For the East (particularly China): They need to grow, so they need to export. They play along because the alternative is massive unemployment and, likewise, social upheaval. Also, even while its Monopoly $$, it helps them catch up with the West from a military/technological standpoint.
• For the Oil Producers: They are in the same boat. The minute the petrol dollars stop, they will have to contend with their own restive populations
Well, we're past being able to bum money from others and now we're using wooden nickels. How long do you think we're going to be able to get away with that until we have to start stealing from those who still have something of value left?
Be sure to check out the chart of the coming tax increase!
You need falling water to turn the mill wheel -- unless there are people out there gathering up wealth it can't flow back out to the rest of us.
Well, that's exactly it - for both parties. Real fixes require political suicides.
Gloom Boom & Doom Report = Obama’s state of the union speech
Yeah, and nary a mention of it .....certainly not from the pols but also from our “free” press
No wonder the feds are investing so heavily in ammo and survival rations.
We're doomed. and I ain't jokin. With obama at the helm there's gonna be precious little business creation. Every dollar that the US govt borrows is one fewer dollar that businesses can borrow.
What businesses we have are gonna shutter their doors and nobody's gonna wanna open new ones with the Obama taxman and Obamacare just around the corner.
Yeah, lol. I'm depressed.
Godspeed
bkmrk
>>>“If everyone’s broke, then no one’s broke”<<<
Aye, but there’s the rub.
When I’m broke, I still have a pretty good store of useful items and tools that I purchased before I was broke. I built a root cellar. I have several greenhouses (essential here in Alaska). I have rifles and ammo. I have a boat with good paddles, and so forth. My broke looks a lot different than the guy whose broke consists of nothing more than that hazy feeling you get after a night of beer and bong hits.
Then the real crisis begins. Do I share my potatoes with all my neighbors, therefore starving both myself and them, or do I feed my family and let the others starve? Up here, out in the Alaska Bush, I can tell you that the wildlife would be slaughtered in a frenzy, which would last one season, since despite what you see on Animal Planet, Alaska’s fish and game is widely scattered and scarce even in good years. (I already live with people who consider the fish and game to be “theirs,” and “they” would feel quite righteous for a while taking what is “theirs” at the start of a crisis.)
What I’m saying is that there are different degrees of broke. What I think you’re pointing out is that we’d all be equally desperate.
God help us.
So, nobody was "broke" during the Great Depression?
I prescribe a viewing of the first 30 minutes of "The Grapes of Wrath" or the more modern (and very good) movie "Cinderella Man".
Brilliant post and thanks for making it and educating me about Alaska in ways I didn’t know before.
I guess my point (what I was thinking not what I wrote!) was more in the
realm of governments - i.e. if every government goes broke. But of course that is not a complete rebuttal of your point - far from it.
Much of this stuff goes back to the eternal question “what is money” - something that sounds easy but actually isn’t.
I guess I’m maybe saying that while things are undoubtedly going to get worse before they get better (I don’t think I’m crawling too far out on a limb in saying that :) ) - that doesn’t necessarily have to equate to TEOTWAWKI - the end of the world as we know it.
After all the numbers and all the graphs are I think based on fiat currency which is how debts are measured. You owe me so many euros. I owe someone else so many dollars. They owe chinese yuan or what have you. Something tells me that somewhere hidden in this whole sorry mess is a reset button - I don’t know what that button looks like or who gets to press it or what pandora’s box that will open. But just because too many balance sheets are flashing red and the red is dominated in fiat currency - doesn’t necessarily mean that we’ve reached the end of the line. Maybe.
That is a good quote, but others have a fantasy kind of like my satire here: http://www.freerepublic.com/focus/chat/2962089/posts?page=12#12
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