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Saturday, March 12, 2011

Today America is Nothing says Marc Faber

In the 1950s, America was above everything else. Today, relative to the rest of the world, America is nothing. For the first time in the history of capitalism, the emerging world is more powerful than the Western world. That is a huge change. And it brings huge tensions in the world.

in Business Week

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

Long Term, You Should Be Exposed To Energy

Marc Faber : I think long term you should be exposed to energy in either scenario....if you are extra bearish and believe that War World III is going to start soon, as I believe, or in an optimistic scenario. - 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.

The Worst Case Scenario For Oil

The Worst Case Scenario For Oil: If The Unrest Spreads To Saudi Arabia
In this most extreme, worst-case scenario for the oil markets, serious unrest spreads to Saudi Arabia. In this case, it does not really matter if Libya or any other producers are shut down or not. Saudi Arabia is OPEC's biggest producer and the world's biggest current holder of spare capacity. - 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.

I do not think that the world can produce sufficient oil in a Goldilocks scenario

Marc Faber on CNN 03_09_11  Marc Faber : ...well all commodity prices have run up very substantially in the last say six months copper oil nickel and so forth ....and all are due for a correction , the question is what happens thereafter and quite frankly I do not think that the world can produce sufficient oil in a Goldilocks scenario where by the developed world Europe the US Japan recovers and the emerging world continues to grow in that case the demand will outstrip the production facilities and so prices will go up if everything looks good and if everything collapses in the world and we have turmoil in the middle east and so forth then obviously supplies will be curtailed very substantially , prices will go ballistic on the upside ..."
"well I think I have been concerned for quite sometime that in the western world notably in the US we had excessive credit growth , and the excessive credit growth especially in the years 2000 to 2007 caused the financial crisis , and now excessive private credit growth have been replaced by excessive government credit growth , so ...which is even worse , the private sector is actually quite efficient it is the government that is usually inefficient , so I think that we are postponing the problems and one day the hour of truth will happen then the global economy and in particular the financial system with all the derivatives and leverage and so forth will collapse and then you will have a reboot it's like when your computer crashes you have to reboot it " as to how to play this market Marc Faber answers : "I am actually quite optimistic I drive motorcycles in Thailand "
"well I think if you look at different asset classes , cash which is usually the safest in the world and government bonds these two assets classes in my scenario of eventual complete collapse are very dangerous , so then you have asst classes like equities , they can go down of course and you have real estate can also go down , precious metals can also go down but at least you still have something , so I would suggest to investors : if you are ultra pessimistic about the eventual outcome before it'll happen you have massive money printing then you'll have war and in both instances you do not want to be in cash or government bonds you want to be in equities precious metals and commodities and in real estate in the country side "
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 BLOG

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