Posted on 04/02/2012 6:55:24 AM PDT by blam
Marc Faber Predicts 'Massive Wealth Destruction' Through Hyperinflation, Social Unrest, Credit Collapse, Or War
April 2, 2012
Joe Weisenthal
Marc Faber was on CNBC this morning, peddling his standard doom
He had two good lines:
The first was that the #1 question investors should ask themselves is not 'where can I make the most money' but rather 'where can I avoid losing the most money'?
He then predicted that the endgame of all this easing will be "massive wealth destruction" through some combination of hyperinflation, credit collapse, social unrest, and WAR!
Doom, boom, and gloom indeed.
For what it's worth, he didn't predict, exactly, when this is coming.
As for what investments he does like....
From CNBC:
"In Georgia, in Arizona, in Florida their property values will not collapse much more and will stabilize, so I think to own some land and some property, not necessarily in the financial centers but in the secondary cities, these are desirable investments relatively speaking."
(Click to the site to see a video)
(Excerpt) Read more at businessinsider.com ...
It is generally a chunk o' change to do somewhere between five and ten years worth of taxes in one blow but it is possible.
Here is a recent bloomberg interview with Faber
I can’t even find constition in the dictionary.
I think that we all have figured out that nothing good is coming down before JC returns. If you’re predicting bad stuff, you have to be specific on what and when to get any respek these days.
>>This is the part I’m having trouble with. Increasing inflation takes at least two basic elements, Demand and a shortage of supply, based upon true value.
Right now there is no demand side of the equation. There is no incentive to increase workers wages, to support an increase of inflation.<<
In my opinion, inflation takes only one “basic element,” that being a rapid acceleration of the money supply. It has virtually nothing to do with supply and demand. As for wages, they will always lag, not lead, in a hyperinflation.
We might not get one, but the Fed has certainly set up the situation so that it’s now highly possible, though not necessarily highly probable. This is because they have allowed excess bank reserves to grow to unheard-levels, and if banks decide to start deploying those reserves, instead of accepting a low level of interest income from the Fed for holding them, we will get rapidly accelerating prices.
The Fed could counteract this by raising reserve requirements dramatically, or by selling off their security portfolio (although they will likely be taking massive losses if they decide to do that), but I’m not altogether sure they’re prepared to do that, not that they even realize the need to do so. We’ll see eventually, I guess.
My main point was that quality stocks do constitute inflation protection to a large degree, although the ride can be a little “too interesting” sometimes. Nevertheless, if prices are up by a factor of ten in the economy five years from now, so should revenues and profits, so stock prices should follow.
If you aren’t familiar with Faber’s perspective, he is actually tying all those catastrophes together as the inevitable result of fiat currencies created and manipulated by international central banks.
“April 2, 2012
Joe Weisenthal
Marc Faber was on CNBC this morning, peddling his standard doom “
And Joe Weisenthal was on BI delivering his typical, “debt-doesn’t-matter” and “fiat-currencies never lose value” knob job to the central bankers.
Skinny little Joey with the mussed-up-hair is an idiot.
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