Thursday, October 21, 2010

Marc Faber : The weight of the global economy is shifting to Emerging Economies.

The Global Economy: Gloom Boom or Doom? The Daily Reckoning's Interview with Dr. Marc Faber

The Daily Reckoning's Eric Fry sat down with the Gloom Boom and Doom Report's Dr. Marc Faber to get his opinion on where the global economy is headed

Marc Faber: Well,you know the world is in transition and you have some trends that are favorable and other trends that are no favorable. So I think it’s not a question to be ultra-bearish or ultra-bullish but to try to identify where there are opportunities. And I believe, in general, we live through very interesting times in the sense that the weight of the global economy is shifting to emerging economies....And we’ll have volatility in emerging economies, but in general I think that as a percent of world’s GDP, you will find in 10 20 years time countries like India, China, Vietnam, Latin America, Africa, the Middle East, Russia, Central Asia will have a much larger weight and also a much larger say in the global economic affairs and political affairs. And that will lead to a lot of tension and volatilities in asset markets....
Marc Faber : ...... if you really think through the deflation scenario then it would mean that the economy in the western world, notably in the US, is very weak.
So what happens if the economy is very weak under the Obama administration, the fiscal deficit goes up not down. The government tanks as a percent of economy expands. Monetary policies will have another huge easy move, or another extraordinary measure increasing the effects balance sheet. These are all factors that then lead eventually to more inflation.Even if you have an environment where GDP per capita in real terms, inflation adjustment goes down. The government will of course lie about it. They will make it look good with all statistical adjustments they can use. The rate will go down as it has for the last ten years, but asset markets can go up very strongly....etc....

Marc Faber : Currency War Can Be Solved With U.S. Austerity

"The currency war can be solved one way: with austerity in the U.S.," "The U.S. needs to redirect the economy to R&D, education and infrastructure expenditure, but instead they want to get spending going again." Marc Faber told reporters at a Russian investment conference today in London.

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Dr. Marc Faber Tomorrow's Gold

Dr. Marc Faber author of the Gloom, Boom and Doom report is a world class Investor, Doctor Faber 's typically controversial and contrarian views have earned him the label of Dr. Doom. Doctor Doom also trades currencies and commodity futures like Gold Natural Gas and Crude Oil.Even his harshest critics must admit that he's been unerringly correct in his market forecasts over the past three decades . Marc Faber is a Swiss investor.He was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.

Dr Faber studied economics at the University of Zurich and, at the age of 24, obtained a PhD in economics. He publishes a widely read monthly investment newsletter The Gloom, Boom & Doom Report, which highlights unusual investment opportunities, and is the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery which was first published in 2002 and highlights future investment opportunities around the world. Tomorrow’s Gold was for several weeks on Amazon’s bestseller list and has been translated into Japanese, Korean, Thai and German. A regular speaker at various investment seminars, Dr Faber is well known for his contrarian investment approach. He is also associated with a variety of funds.