there will be an agreement, but it does not solve the fundamental problem of excessive debt

Marc Faber : “Yes, I’m sure there will be an agreement, but it doesn’t solve the fundamental problem of excessive debt and of further, very substantial deficits. They’ll iron out something with lots of compromises and with spending cuts that are backloaded, in other words they won’t happen immediately. As we go along say in three or five years' time when these spending cuts should occur and when the tax increases should occur, nothing will happen in my opinion.”



Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

one way to control China is to control the oil in the Middle East

Marc Faber : .....one way to control China is to control the oil in the Middle East. And if they control the oil in the Middle East, they can switch on the tab or close the tab to China. Because China, Japan, Taiwan, Laos, Korea, Hong Kong, they get ninety five percent of the oil from the Middle East. That is not the case for the US. The largest supplier of oil to the US is Canada and a large supplier is also Mexico and Venezuela and East Africa, Angola, Nigeria. The Chinese are a hundred percent on Middle Eastern oil. And the US and western powers, they will go and destabilize the Middle East and then try to control it. Well, obviously, they can only go this far because first of all, it will take a lot of money. They now, they are engaged in Libya, they’re engaged in Iraq, they’re engaged in Afghanistan. Next station, they have to be engaged in Pakistan, which is gradually shifting its alliance to China away from the US. Now, when the US went into World War II, debt to GDP was a hundred forty percent and they didn’t have unfunded liability for Medicare, Medicaid and Medicare. Now they have the unfunded liabilities and they have debt to GDP of three hundred seventy nine percent officially. But with the unfunded liability something like eight hundred percent. They’re not in a position to finance the war unless they print money. And so I think the geopolitical picture will eventually lead, in my opinion, to much higher inflation rates than what we’re seeing now.
And by the way, I think the inflation in the US is already much higher than what is being published by the media. And we know now about the media since Mr. Murdock is the largest media machinate. And since he, for sure, because I know some people who used to be in leading positions at News Corp in Asia -- he calls them every day. He checks everything that they do. He knew about the hacking in Britain for sure. And he sanctioned it.But this big business. Big business is dirty. But why is it dirty? Because it’s been made dirty by the government.
. - in Financial Sense News Hour



Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Bullish on US Real Estate

Marc Faber : “More desirable is probably real estate, especially now in the United States at this level. It may still go down another 10%, but it’s now reasonably priced and by some standards, it’s even cheap.”

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The whole financial system will be re-booteded

Marc Faber : “Eventually, this whole system will collapse,” “And just like when a computer crashes, you have to re-boot it. The whole financial system will be re-booteded.”



Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

if you lose only 50% of your money, you may actually be lucky

Marc Faber : “I think we’re moving into an environment where if you lose only 50% of your money, you may actually be lucky.”


Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Deflation vs. Inflation

Marc Faber : .... I mean, I think that deflationists, they all have families. They go shopping, their families go shopping, they pay educational cost, they pay healthcare cost, insurance cost and they see the fees on local government services increasing, taxes generally increases. Then I find this hard to believe that they would endorse the concept of deflation. But obviously, they may think that the economy may collapse and that as a result of that, we may have deflation and that, therefore, you should buy long term US government bonds. And my view is, particularly in the deflationist scenario, where you would have like Prechter said the Dow Jones below a thousand. In that scenario, you wouldn’t want to be in US government bonds and in cash for the simple reason that in that scenario, the fiscal deficits -- in other words, spending -- would exceed tax revenues even more than if you were actually optimistic about the economy. Just consider -- if the Dow Jones went below a thousand, what kind of an economic environment would we be in? We would be in a total credit collapse. We would be in a total economic collapse. And we would have a complete corporate profit collapse. And in a corporate profit collapse and in an economic depression, what do you think would happen to tax revenues? They would collapse, as well. And so the revenues of the treasury would decline very meaningfully and the fiscal deficit, which is now running, say, optimistically set at one and a half trillion. If you counted the unfunded liability stats are accruing every year. Probably the fiscal deficit is more like two to two and a half trillion dollars. But let’s say one and a half trillion dollars. If that happens, the Dow Jones below a thousand, corporate profits collapsing and revenues collapsing, then the fiscal deficit for sure would be two to three trillion dollars. And in that environment, the quality of credit of the US -- as was suggested by Moody’s yesterday -- would decline and US government bonds, which I think are already today junk bonds, would go and yield much more than less than three percent of what they’re yielding at the present time.So particularly, in the deflationary scenario, you don’t want to be in government bonds.

- In the financial sense news hour with Jim Puplava


Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

I have 20 percent of my money in Gold and Silver

Marc Faber : I think in the coarse of my life  if I followed what the Jews are doing you are usually on the side of winners in terms of money they are very smart at making money , I have numerous Jewish friends that have like either 80 or 100 percent of their money in Gold Silver or Gold silver mines and so forth and I have other Jewish friends that have between 30 and 50 percent of their money in Gold and Silver , so I personally have less , I have like now may be 20 percent of my money in Gold and Silver and in mining stocks but on any meaningful decline and I say that in every newsletter I write a correction can occur that is meaningful like Gold started its bull market in 1971 and it reached the peak in 74 of 197 dollars an ounce and then between December 74 and August 76 at the time the Dow Jones went up very strongly , the Dow Jones bottomed out in the bear market of 73 - 74 in December 74 but during that time of stocks going up of 74 - 76 Gold went down by more than 40 percent from 197 dollars an ounce to 104 dollars an ounce , that's a big big correction but then Gold went up 8 times , I am saying you know you buy Gold today I do not know may be it goes down a 100 dollars here it goes down a 200 dollars but looking at all the factors we discussed I do not believe that we are in a bubble stage, , because I have lived through the last bubble in the late 70s I can tell you that the whole world followed the Gold market day and night and traded Gold 24 hours a day like the whole world traded NASDAQ stocks 24 hours a day in 1999 and 2000 that has not happened yet we do not have a heavy weighting we do not have a heavy kind of euphoria about Gold at all , the risk today is not to own Gold but to not to own any Gold , if you have no gold at all I think you are taking a risk , and my advise is simple every month you put some money aside and you buy a little bit of Gold you do not worry about the price fluctuation buy every month a little bit and your grand children will be very happy about that unless the US government takes it away that is a possibility with Mr Bernanke just look at him he particularly not a honest looking character ..."
- in The Financial Sense NewsHour Interview

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

I do not think they will default on the debt

Yes, I think they will somewhere, somehow come to an agreement or they will fiddle around with the debt ceiling or invoke the Constitution whereby the President, in a special situation, can actually increase the debt of the US.Something will have to happen....but, I don't think they will default on the debt. - in CNBC

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Big business is dirty

Marc Faber : I think the geopolitical picture will eventually lead in mu opinion to much higher inflation rate than what we are seeing now , and by the way I think the inflation in the US is already much higher than what it is being published by the media , and we know now about the media since Mister Murdoch is the largest media magnate and since he for sure , because I know some people who used to be leading position at Newscorp in Asia he calls them everyday he checks everything that they do he knew about the hacking in Britain for sure , but this is big big business , and big business is dirty but why is it dirty ? because it has been made dirty by the government ..."  - in Financial Sense News Hour 


Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Dangerous Are Government Bonds, Dangerous Is Cash

Marc Faber : Dangerous are government bonds, dangerous is cash. More desirable is probably real estate, especially in the United States at this level (it still can go down 10 percent or so but its reasonably priced or even cheap), equities and of course precious metals. - in Financial Survival Radio Interview


Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The US Will Default By Inflation

Marc Faber : "I don't think the US will default in terms of not paying the interest on its debt. They will though default via a falling dollar as Bernake begins printing more money," - in CNBC

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Gold Will Be Substantially Higher Over The Next 5-10 Years

" I rather see that over the next 5-10 years we will have substantially higher gold prices, or expressed differently, lower purchasing power of paper money." Marc Faber - in CNBC

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber Advises Buying Gold Now

15 July 2011 : Dr. Marc Faber of the Gloom, Boom & Doom Report joins Jim Puplava of the Financial sense News hour in a wide-ranging interview to discuss Ben Bernanke, QE3, inflation, gold and much more. Marc Faber says QE3, More Inflation Coming and Advises Buying Gold Now

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

if the Dow Jones went below a thousand we would have a complete economic collapse

Marc Faber : ...I think the deflationists they also have families they go shopping their families go shopping they pay educational cost they pay healthcare cost insurance cost and they see the fees on local government services increasing then I find it hard to believe that they will endorse the contest of deflation but obviously they may think that the economy may collapse and that as a result of that we may have deflation and that therefore you should buy long term US government bonds and my view is particularly in the deflationist scenario where you would have like Prechter said the Dow Jones below a thousand in that scenario you would not want to be in US government bonds and Cash for the simple reason that in that scenario the fiscal deficit in other words spending would exceed tax revenues even more than if you are actually optimistic about the economy , just consider if the Dow Jones went below a thousand what kind of an economic environment would we be in , we would be in a total credit collapse we would be in a total economic collapse and we would have a complete corporate profit collapse and in a corporate profit collapse and in an economic depression what would you thing happens to tax revenues , they would collapse as well and so the revenues of the treasury would decline very meaningfully and the fiscal deficit which is now running say optimistically said at one and a half trillion if you counted unfunded liabilities that are growing every year proof that the fiscal deficit is more likely two to two and half trillion dollars , but let's say it is one and a half trillion , if that happens the Dow Jones below a thousand corporate profit collapsing and revenues collapsing the fiscal deficit for sure will be two to three trillion dollars and in that environment the quality of credit of the US as was suggested by Moody's yesterday would decline and US government bonds which I think are already today junk bonds would go and yield much more than less than three percent that they are yielding at present time , so particularly in a deflationist scenario you do not want to be in a government bonds ".... - in Financial sense News Hour



Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The Australian Housing Market Is In a Bubble and is very susceptible to a housing crash

If you have been lucky enough to have owned Australian real estate over the last few years, you may want to take profits. The Australian housing market is in a bubble and is very susceptible to a housing crash. The likely catalyst for the sharp decline would be a major slowdown in China, which would depress demand for commodities. - in Commodity Online, a snapshot of The Gloom, Boom & Doom Newsletter






Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The US Will not Default In Terms Of Not Paying The Interest On Its Debt

I don’t think the US will default in terms of not paying the interest on its debt. They will though default via a falling dollar as Bernanke begins printing more money. - in CNBC


Related ETFs: SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG) Agriculture Fund (DBA), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) United States Oil Fund (USO), SPDR Gold ETF (GLD), Powershares DB Agriculture ETF (DBA) SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The Risk Is Not To Hold Gold

The risk is not to hold gold. Whilst there is the potential for 10 percent downside in the short term over the next 5 to 10 years the gains will be big. Or put another way, the purchasing power of paper money will fall. Cash is very risky asset except in times of major market corrections. - in CNBC

Related ETFs: SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG) Agriculture Fund (DBA), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) United States Oil Fund (USO), SPDR Gold ETF (GLD), Powershares DB Agriculture ETF (DBA) SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Time to Buy US Real Estate, But Choose Carefully

It's Time to Buy US Real Estate, But Choose Carefully





Related ETFs: SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG) Agriculture Fund (DBA), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) United States Oil Fund (USO), SPDR Gold ETF (GLD), Powershares DB Agriculture ETF (DBA) SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

they will end QE2 and not tighten monetary conditions

Marc Faber : No further stimulus. We have to qualify that statement. I think they will end QE2 and not tighten monetary conditions, but there could be a relative tightening the way we had it after the end of QE1 until QE2 was announced last August. So for the next three months or so, asset markets will continue to drift lower. Traditionally the month of May is very weak.Also June and then from June on, we have some seasonal strength developing until the end of July, early August and then we have weak September-October months, seasonally speaking. The markets are oversold at the present time. We could re-bounce somewhat from herein to the end of July and then have another ground draft in October-November, but my forecast is very simple. If the S&P were to drop from here by, say, another 10-20%, for sure, for sure you will get QE3. There is no doubt about this.


Related ETFs: SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG) Agriculture Fund (DBA), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) United States Oil Fund (USO), SPDR Gold ETF (GLD), Powershares DB Agriculture ETF (DBA) SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The Australian Housing Market Is In A Bubble

The Australian Housing Market Is In A Bubble says Marc Faber
If you have been lucky enough to have owned Australian real estate over the last few years, you may want to take profits. The Australian housing market is in a bubble and is very susceptible to a housing crash. The likely catalyst for the sharp decline would be a major slowdown in China, which would depress demand for commodities. - in Commodity Online



Related ETFs: SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG) Agriculture Fund (DBA), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) United States Oil Fund (USO), SPDR Gold ETF (GLD), Powershares DB Agriculture ETF (DBA) SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The US dollar will eventually go back to its intrinsic value namely ZERO

Dr Marc Faber in a recent interview with CNBC said that we’re in a contest for the ugliest currency. He says a huge overhang of US dollars exists globally, and suggests gold and silver as the best currencies. Faber believes the US dollar could rebound in the short term, but maintains his long term prediction that the value of the US dollar will drop to zero.




Related ETFs: SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG) Agriculture Fund (DBA), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) United States Oil Fund (USO), SPDR Gold ETF (GLD), Powershares DB Agriculture ETF (DBA) SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

investors should have approximately 50% of their money in Emerging Economies

Marc Faber : In general, investors should one day have approximately 50% or more of their money in emerging economies. I have all my money in emerging economies for the money that they allocate to real estate and to equities. Of course I also have bonds in the developed world and also cash in on the developed world, but in general, I am very optimistic about the emerging economies. But that does not change the fact that over the last few months, in fact since April because I saw that April would be a high for the S&P at 1219, I have taken some money off the table because a correction is overdue. - in ET Now


Related ETFs: SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG) Agriculture Fund (DBA), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) United States Oil Fund (USO), SPDR Gold ETF (GLD), Powershares DB Agriculture ETF (DBA) SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

US Stock Market Outlook

Marc Faber : Usually what happens in the market, we have seasonal strength in January, then weakness in February, then strength in March-April and then weakness in May-June and then again a summer rally in July until early August.

So, we are moving into seasonally strong period. But unlike many strategists, I don’t think we are going to make a new high. I think the S&P or the overall market in the U.S. will close 2011 at about this level or lower not higher as every strategist is predicting. I think we have seen the highs for this year, let us put it this way. - CNBC TV-18


Related ETFs: SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG) Agriculture Fund (DBA), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) United States Oil Fund (USO), SPDR Gold ETF (GLD), Powershares DB Agriculture ETF (DBA) SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA), iShares Russell 2000 Index (ETF) (NYSE:IWM), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ)
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.