Sunday, July 31, 2011

Marc Faber : 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," he added.
"It is mind boggling that somebody will buy 10-year U.S. Treasurys at a yield of less than 3%, denominated in US Dollars," Marc Faber told CNBC recently

Marc Faber : Easy monetary policies create greed and bubbles

Marc Faber : Well, basically, easy monetary policies create greed and bubbles. And one of the symptoms of bubbles and investment manias is always the proliferation of fraud, embezzlement and dishonest practices. And we had also, in the US, I mean, basically, I would say Fannie Mae and Freddie Mac were a complete fraud. But of course, the government will never admit that. I think the US government is a complete fraud, with the exception of some decent people. But by and large, it’s a fraud. It’s a Ponzi scheme. And in China, obviously, we have a country that is growing very rapidly. And it’s caught the attention of the world and of relatively unsophisticated people -- dentists, doctors, whatever it is, professional. They think we have to buy some Chinese companies because China is growing very rapidly. And so where there is demand, the supply comes in. A lot of fraud companies are listed in the US and elsewhere. And then they basically are revealed as being fraudulent. This is only natural. But I would say when people discuss China -- is a bubble or not a bubble -- the fact that there are so many fraud companies in China would point out to me or show me that there is a bubble, very clearly. Latest money printing by Bernanke has basically produced not necessarily a bubble in the US, but it’s produced a weak US dollar, which is a symptom of inflation. And it’s produced bubbles elsewhere in the world.

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.