Unanimity of Opinions Is the Motto of the Day
Marx Faber confirms all the factors I have presented to you so far that have led to the current “epic slump” of the economy, the scope of which even this clever man cannot envision as agnostic thinker. Please observe that this interview was made before the actual stock markets crash began.
Famed investor and author of the Gloom, Doom, Boom Report, Marc Faber, returns to the podcast this week to discuss the slowdown in the global economy, signs of which he claims are multiplying fast all around the world.
He predicts the next year is going to be an especially bruising one for investors, and recommends a combination of diversification and defense for those with financial capital to protect:
I do not believe that the global economy is healing. I believe that the global economy is heading into a slump once again.
We have a slowdown practically everywhere and if you take out the fudging of statistics (main point in my discussions as this falsification of the inflation statistics in particular has hidden the key fact that the western economy is in the Greatest Depression of all times, note, George) , the economy for the median household everywhere in the world is not doing particularly well. If the global economy were doing so fantastically well, how would it be that commodities collapsed to the extent that they have declined? Or how would it be that the currencies of American markets and some of them have actually declined by more than 50 percent against the U.S. dollar in the last three years. How would this happen? So I do not believe that we have a healing of the global economy. On the contrary, I believe that the global economy is slowing down (In fact it is in the Greatest Depression, note, George) and that essentially equity markets are not particularly attractive.Preceding every bubble, you have a huge expansion of credit (the real term is gargantuan increase of debt, note George). That was the case in the period ’97 to 2000, and in the period 2003 to 2007, and on previous occasions in economic history. In the case of China, credit as a percent of the economy has grown by more than 50% over the last five years, which is essentially a world record. And in my view, its economy is slowing down rapidly. I had a drink with a friend of mine the other day who has car dealerships, luxury car dealerships, in China. He said sales have hit a brick wall. Not ‘slowed down’; a brick wall. And indeed, exports were down and car sales were down in July. I think that this will then spill over again into other emerging economies because China is a large buyer of commodities and a large trading partner to other countries.I travel extensively. I can see roughly what is going on. So I really believe that the American market complex is not doing well at the present time. And everywhere, people basically are faced with rising costs of living and essentially declining currencies so that the persons in power goes down. So it’s not a pretty picture.
Marc Faber further speaks of all the bubbles that now burst and impoverish the people. Fantastic unanimity with all my theses especially in this point: The central banksters are not running out of munition as the interviewer suggests but are criminals according to Marc Faber. What else? There is not much liquidity in the market, confirms Marc Faber in full agreement with me on the current severe credit and cash crunch. And so on… A very inspiring interview overall, even if he does not see the total collapse of this reality and the abolishment of money at the end of this “Epic Change” where the current slump of the stock markets is just the petting to the real orgasm of divine destruction next month, the architects of which we are as incumbent Logos Gods.