Global Recession is Coming

Marc Faber appears on CNBC's "Fast Money" and discusses the ongoing European crisis. He says that Greece should exit the Eurozone.

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

Deflationary pressures in the markets

Today we have commodities breaking down including Gold. At the same time we have bonds rallying very strongly. If you stand aside and look at these two events, you will see they are deflationary pressures in the system. If that was the case[deflation], I wouldn't buy stocks, or sovereign bonds. The stock markets would be hit by disappointing profits if there was a deflationary environment.

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

Anything is possible including deflation

Everything is possible including deflation right now. We have gigantic bubbles, Nasdaq bubble in the 1990's, commodities in 2008, these kinds of volatility comes from expansionary monetary measures. Despite all the deflationary pressures, I think we are going to have a major low in Gold within the next couple weeks.

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 Rich get richer through money printing

Printing money is the way global governments will evade debt crises, such as the one that affected Europe. That would forestall the crisis rather than solve it, keeping prices elevated for assets like stocks, real estate in some areas and precious metal. Loose monetary policies, including low interest rates, intended as a short-term fix, can have unintended consequences later. Some people will benefit from money printing that deflates the purchasing power of currency, but the middle and lower income classes are being hurt.

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 in the system

With the recent commodities falling apart, oil, grains, including Gold. At the same time we have bonds rallying very strongly. This implies there are deflationary pressures in the system. If that was the case, I wouldn't buy stocks, or sovereign bonds. The stock markets would be hit by disappointing profits if there was a deflationary environment.

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 owning Gold

Owning gold is should be viewed as the ultimate insurance policy to cover financial calamity. A 30 percent correction or 40 percent correction cannot be ruled out, but as I maintain, again and again, I’m not going to go and sell my gold.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.