Marc Faber Warns Deflationary Collapse to Destroy America

In today's video, Christopher Greene of AMTV reports Marc Faber warns of a deflationary collapse to destroy America.

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

Chinese tourists in Thailand up 100 percent

We all know China is a growing economy and market for almost everything. Well this now also includes the tourism export industry as the Chinese people are now travelling to international destinations more frequently due to ease of getting a passport and their own increasing wealth. Here Dr Marc Faber talks about what he observed while he was in Macao and other parts of Asia. "The Chinese tourist group is the largest group in the world. 90 million Chinese travel overseas every year. They first go to Macao to casinos. Gradually they are moving to other countries in South East Asia, by the way also US and Europe. For instance in Thailand arrivals from China was up 90 percent. In some months they were up 100 percent."

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: Apple could face bankruptcy

 The famous investor Marc Faber believes that Apple is a problem the company that makes many " frivolous " products and therefore may be directed towards bankruptcy.

" Apple shares are those you are not interested ," Faber said in an interview quoted by Business Insider. " I'm not saying that they will sink , but may get there eventually ," said another prominent investor.

According to Marc Faber eventual fate of Apple has a similar example from the past.

" It's like a Polaroid of the 70s . Eventually she , like Apple, has been founded and led by renowned innovator who eventually left her," recalls Faber.

"Dr. Edwin Land, who is the founder of Polaroid, was the owner of more patents than any other in the world," said Marc Faber.

1982 Land left his seat on the Board of Directors of Polaroid, and subsequently dropped from his research position at the company. In 2001 and famous for its production of sunglasses company filed for bankruptcy protection and continue to sell its assets.

At present, Apple certainly is a far cry from the fate of Polaroid. The technology giant has current assets of $ 43 billion. Her only income in the second quarter of 2013 even reached $ 35 billion.

Faber argues that the technology industry is full of " tombstones " of ekspazarni leaders. "We and many other examples of high-tech companies that simply disappeared," said the investor.

According to Faber biggest issue of Apple is that its products are not suited to human needs.

" It's just a company that produces toys for grown-ups," said popular investor.




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

Weakening consumer confidence

Marc Faber clearly is still feeling rather bearish on the stock markets and specially on the US stock market. He comments on the consumer confidence.

"With what is going on consumer confidence is going to worsen further. Any common sense man, he looks at congress sees a dysfunctional government, is not going to rush and buy out goods. Secondly, according to the Feds own statistics the money that was printed by the Fed has gone to 5 percent of the population. Maximum 50 percent of the population household wealth is still down more than 40 percent from 2007 peak."




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

Inflation Leads to Deflation

  "We are in a gigantic asset bubble around the world with prices of real estate having risen a lot," he said. "The high end is at record highs. In the Hamptons, in Mayfair, London, Hong Kong, Singapore, and we have a high inflation overseas, so I think that one day this asset inflation will lead to deflationary collapse one way or the other."- 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 would not Buy US Stocks at the present levels

We are coming into the earnings season. The earnings are likely to disappoint. The markets are not cheap according to many valuations. The returns over the next 5 to 10 years will be very moderate.



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 Markets are Overbought

 "When I look at the market action today, I would like to see the next few days, because it may be a one-day event. The markets are overbought. The Feds have already lost control of the bond market. The question is when will it lose control of the stock market. So, I'm a little bit apprehensive. I would like to wait a few days to see how the markets react after the initial reaction."



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

Emerging Markets benefited from Cheap Money & Money Printing

Money printing has been beneficial to people with money in emerging economies because a lot of funds flow into emerging economies due to the huge U.S. trade and current account deficits and it has been rather detrimental to the middle class and the working class because their costs of living have risen more than their wages.

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

Danger signs flashing for Apple

"I'm not saying it will go bust," but "it could go bust eventually" -via 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.

Where Gold is Heading

"When I look at the market action today, I would like to see the next few days, because it may be a one-day event. The markets are overbought. The Feds have already lost control of the bond market. The question is when will it lose control of the stock market. So, I'm a little bit apprehensive. I would like to wait a few days to see how the markets react after the initial reaction."- in Bloomberg

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

Faber: Apple could face bankruptcy

The famous investor Marc Faber believes that Apple is a problem the company that makes many " frivolous " products and therefore may be directed towards bankruptcy.

" Apple shares are those you are not interested ," Faber said in an interview quoted by Business Insider. " I'm not saying that they will sink , but may get there eventually ," said another prominent investor.

According to Marc Faber eventual fate of Apple has a similar example from the past.

" It's like a Polaroid of the 70s . Eventually she , like Apple, has been founded and led by renowned innovator who eventually left her," recalls Faber.

"Dr. Edwin Land, who is the founder of Polaroid, was the owner of more patents than any other in the world," said Marc Faber.

1982 Land left his seat on the Board of Directors of Polaroid, and subsequently dropped from his research position at the company. In 2001 and famous for its production of sunglasses company filed for bankruptcy protection and continue to sell its assets.

At present, Apple certainly is a far cry from the fate of Polaroid. The technology giant has current assets of $ 43 billion. Her only income in the second quarter of 2013 even reached $ 35 billion.

Faber argues that the technology industry is full of " tombstones " of ekspazarni leaders. "We and many other examples of high-tech companies that simply disappeared," said the investor.

According to Faber biggest issue of Apple is that its products are not suited to human needs.

" It's just a company that produces toys for grown-ups," said popular investor.

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

Wealthy people benefited more from money printing

In an ideal world money printing from the Fed would flow evenly into all sectors. The fed probably do believe that their money printing program is working just fine. Others like Marc Faber are skeptical. "The problem is that the money doesn't flow evenly into the system but it flows into some sectors at different times and it creates booms in some sectors of the economy." Who and which sectors in the economy benefits from uneven money flow ? Dr Faber says "The major beneficiaries of the most recent monetary inflation based in 2008 have been people closest to the source of the liquidity. In other words the financial sector, hedge fund and bond managers, private equity firms and large asset holders; because if you look at, say, who owns shares in the U.S.; the majority of people have no shareholding to speak of. It’s the minority, maybe five percent of the population, that holds the majority of shares. So the money printing has actually been very beneficial to well-to-do people. That’s why some high-end property prices are at record highs. It’s been also beneficial to people with money in emerging economies because a lot of funds flow into emerging economies due to the huge U.S. trade and current account deficits and it has been rather detrimental to the middle class and the working class because their costs of living have risen more than their wages."




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

This WILL End Badly

I'm not thinking. I'm convinced. It will end very badly. It doesn't mean it has to be tomorrow, you understand. I'm a car mechanic and I tell you, “Look, your car has several problems.” In a week’s time, you’re telling me, “Look, I've been driving and it still works perfectly fine.” The car may still work for another year, or two years, or three years, and one day, you have a crash. And then, you will think back, “Maybe back then I should have repaired my car.” - in Sprott Money


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 Predicts another “Black Monday” by the End of 2013

 On October 19, 1987, the day known as “Black Monday”, S & P 500 index dropped sharply by 20%. This event remains forever in the history of Wall Street as the biggest loss suffered in exchange for one day. It was the end of five years-long period of appreciation of the shares. Faber notes that in just two days this week, when the S & P 500 hit historic high of 1,709 points, there were 170 issues, which were trading at 52-week lows. This means that only a few companies moving market.
“In 1987 we had a significant increase in stock prices. Profits, however, did not g row at a stable rate. Markets were overvalued. There was a sharp decline, and on August 25 was the last day on which a large number of shares registered 52-week low. In other words, the number of shares that rose, curled up and saw a number of disruptions to trade with different shares, “said in an interview with 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.

China is Encouraging Gold Ownership

I wouldn't say that I would trust them much more. I don’t trust any government, period. But if there are significant problems, I think they would come from over-indexness. In other words, the debts are too burdensome for the system, and then it leads to all kinds of symptoms.

In other words, if you can’t pay your debts, you may print money, or you default, or you increase taxation, or you take things away from the well-to-do people, the evil people that make so much money. Well, the Federal Reserve enables them to make so much money. That is a key difference. They didn't abuse the system; they just took advantage of a situation of money printing so their wealth increased more than the wealth of the middle class and the lower classes.

In the Western world, they’ll go after these well-to-do people and people that own gold. In Asia, I'm not so sure this will happen because Asia is increasingly coming under the umbrella, our own umbrella of China. The Chinese government has actually encouraged people to accumulate gold, and themselves, they are accumulating gold.

- in Sprott Money:

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

we have unprecedented government interventions with fiscal and monetary policies

 
"Well I think we have unprecedented government interventions with fiscal and monetary policies. For me it’s not really a question, it won’t work but miracles do happen, and maybe based on the bailouts and huge monetary inflation that the central bankers have created, maybe it is possible that the financial system heals and that the global economy resumes a, say, trend line growth such that we had in the 90’s and the early parts in 2000 and 2005. But I very much doubt that."


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 State is Getting More Bloated

Q: The turnaround in interest rates in the United States has failed, the Fed continues to print money. Is that good for stocks?

A: The Fed operates in 20 years a policy of monetary expansion.After the collapse of LTCM in 1997, after the collapse of the Nasdaq and after the real estate crisis, interest rates were kept artificially low - at virtually zero percent today. In March 2009 the U.S. stock index S & P 500 reached its nadir with 670 points. Now we are at 1700 points - a tripling! The artificially low interest rates and bond purchases have reduced the prices of stocks and real estate driven up. But the economic effect was relatively small.Milton Friedman wrote in "Capitalism and Freedom": The problem with government programs, they can always be started due to an emergency, but not abolished, when the emergency is over.Thus, the state is getting more bloated. For the Fed, it is becoming increasingly difficult to end their policy. And if they still do it one day, what will happen to the stock market?

Q: Which markets are still interesting because for stock investments?

A: If you press me 100 million euro in the hand and say that you have to invest in stocks, then I would probably select emerging markets, which has dropped so dramatically lately. Malaysia, Thailand, Hong Kong, Singapore - there are plenty of stocks that have a dividend yield of five percent. That's not huge, but still signaled that the cash flow of the company is okay. The Vietnamese market is interesting. Japan was not thrilled me, but the Nikkei could run better than other markets.

Q: Sounds underwhelming.

A: We are in a sideways market. This was back in the seventies when I started my career like that. Nevertheless, there are of course opportunities. Some industries developed tremendously in this sideways market. Did you have gold or energy stocks, you were rich.

- in http://www.wiwo.de/finanzen/geldanlage/marc-faber-physisches-gold-als-versicherung-gegen-unfug/8884908.html

 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 Bullion as Insurance Against Mischief

Business Week: Mr. Faber, you have to buy gold?

Faber: Yes. Owning physical gold is for me personally an insurance against mischief, driving the governments. In the worst-case scenario ...

With state bankruptcies ... or hyperinflation ...

Governments ... will not say: Oh, we have made a mistake. You will not find culprit.

And that will be the wealthy?

I do not think that the individuals' assets remain untouched.

Gold as an insurance against crises, this is the one. What if I want to speculate?

As an investor, you can make more money with gold mining stocks. Were virtually destroyed the last price drop and are now favourable to have.

- in  http://www.wiwo.de/finanzen/geldanlage/marc-faber-physisches-gold-als-versicherung-gegen-unfug/8884908.html

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

Monetary inflation creates a huge pool of liquidity

For the last four years, the US Fed Fund Rate has been essentially zero, and we have a massive money-printing, monetary inflation that creates a huge pool of liquidity.

Basically, what we have seen in the world are the consequences of the crisis the US and world faced in 2008-09 caused by excessive debts brought about by artificially low interest rates.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Not Reliable & Distorted Statistics Coming from China

China's economy probably growing at an annual rate of 4 %, according to Marc Faber , known in the investment community with extremely negative outlook. " I told an economist , I believe that the second-largest economy is growing at a rate of 4 % per year, and he asked me, lest I mean rate of minus four percent ," said Faber to financial magazine CNBC. " I do not think that growth was negative in the amount of 4% , but must be included in the projection state of the credit market, which is at healthy levels ," says Faber. China's economy grew by 7.7% last year as projected on the side of growth this year of 7.5 %, according to government data. Big credit growth is one of the main risks to the growth of the Chinese economy , according to market observers. In recent months, the central bank of the country , apparently realized the problem, some efforts to address the poor state of the credit market. Contrary to the opinion expressed by Faber , retail , long-term investment and industrial production were better than expected. Faber motivate their negative expectations with other indicators, such as sales data with neighboring countries that might provide better information for the Chinese economy in the distorted statistics of the country. "You have to take into account other indicators that are more reliable , such as data export to countries like Taiwan and South Korea ," said Faber. Faber confirmed positive attitudes for gold, commenting that the precious metal is relatively cheap right 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.

Growth in China is rather 4%

China's economy probably growing at an annual rate of 4 %, according to Marc Faber , known in the investment community with extremely negative outlook. " I told an economist , I believe that the second-largest economy is growing at a rate of 4 % per year, and he asked me, lest I mean rate of minus four percent ," said Faber to financial magazine CNBC. " I do not think that growth was negative in the amount of 4% , but must be included in the projection state of the credit market, which is at healthy levels ," says Faber. China's economy grew by 7.7% last year as projected on the side of growth this year of 7.5 %, according to government data. Big credit growth is one of the main risks to the growth of the Chinese economy , according to market observers. In recent months, the central bank of the country , apparently realized the problem, some efforts to address the poor state of the credit market. Contrary to the opinion expressed by Faber , retail , long-term investment and industrial production were better than expected. Faber motivate their negative expectations with other indicators, such as sales data with neighboring countries that might provide better information for the Chinese economy in the distorted statistics of the country. "You have to take into account other indicators that are more reliable , such as data export to countries like Taiwan and South Korea ," said Faber. Faber confirmed positive attitudes for gold, commenting that the precious metal is relatively cheap right 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.

Marc Faber - The Endgame Is A Total Collapse

With rumors this evening of the White House calling around for support for Yellen, Marc Faber's comments today during a Bloomberg TV interview are even more prescient. Fearing that Janet Yellen "would make Bernanke look like a hawk," Faber explains that he is not entirely surprised by today's no-taper news since he believes we are now in QE-unlimited and the people at the Fed "never worked a single-day in the business of ordinary people," adding that "they don't understand that if you print money, it benefits basically a handful of people." Following today's action, Faber is waiting to seeing if there is any follow-through but notes that "Feds have already lost control of the bond market. The question is when will it lose control of the stock market." The Fed, he warns, has boxed themselves in and "the endgame is a total collapse, but from a higher diving board."   - in Zero Hedge:


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

Few Americans own shares

The majority of people do not own stocks. Only eleven percent of Americans own directly shares.

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 Endgame Is A Total Collapse - But From A Higher Diving Board

With rumors this evening of the White House calling around for support for Yellen, Marc Faber's comments today during a Bloomberg TV interview are even more prescient. Fearing that Janet Yellen "would make Bernanke look like a hawk," Faber explains that he is not entirely surprised by today's no-taper news since he believes we are now in QE-unlimited and the people at the Fed "never worked a single-day in the business of ordinary people," adding that "they don't understand that if you print money, it benefits basically a handful of people." Following today's action, Faber is waiting to seeing if there is any follow-through but notes that "Feds have already lost control of the bond market. The question is when will it lose control of the stock market." The Fed, he warns, has boxed themselves in and "the endgame is a total collapse, but from a higher diving board." - in Zero Hedge:

 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 Fed has lost control of interest rate direction

The [US Federal Reserve's] goal is to lower long-term interest rates via the massive asset-purchase programmes called quantitative easing [QE], but it seems it has lost control of the interest-rate direction.

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

We are in QE Unlimited

We are in QE unlimited. The people at the fed are professors, academics, they never worked in a single life of business of ordinary people. They don't understand that if you print money, it benefits basically a handful of people, not even 5 percent of the population, 3 percent of the population.

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 on Janet Yellen

"She will make Mr. Bernanke look like a hawk. She, in 2010, said if could vote for negative interest rates, in other words, you would have a deposit with the bank of $100,000 at the beginning of the year and at the end, you would only get $95,000 back, that she would be voting for that. And that basically her view will be to keep interest rates in real terms, in other words, inflation-adjusted. And don't believe a minute the inflation figures published by the bureau of labor statistics. You live in New York. You should know very well how much costs of living are increasing every day. Now, the consequences of these monetary policies and artificially low interest rates is of course that the government becomes bigger and bigger and you have less and less freedom and you have people like Mr. De Blasio, who comes in and says let's tax people who have high incomes more. And, of course, immediately, because in a democracy, there are more poor people than rich people, they all applaud and vote for him. That is the consequence." - in a recent Bloomberg 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.

Investing in Emerging Markets

Many emerging markets are down 50 percent from their highs post recovery 2009. Where do you invest ? The case can be made to should one want to invest in equities he will choose the depressed markets.

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