Saturday, August 2, 2014

China is Lying about its Growth

How do you see the economy in China, will it get a lot worse before it gets any better?

Marc Faber : Well, nobody knows for sure and I’d like to remind you and your readers that China is unlike any other country. It is twice the size of Europe and the US combined in terms of population. So it is a huge empire and giant economy. My view is that the economy is not growing at the rate the government claims it is. The economy is growing at maximum 4% per annum, because when you look at export and import statistics of countries like South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, and their trade figures with China, you will find it is not growing or is hardly growing. Under the interventionists in China there will obviously be monetary easing, fiscal spending and so forth, like anywhere else. And so, they can maybe postpone the problems but in general, I would say the remarkable thing about the last twelve, fifteen years is that in the case of metals, Chinese consumption has grown from 12% of world consumption in year 2000 to now 47% and this Chinese consumption of industrial commodities was just 2 or 3% in 1990. So we’ve had this huge expansion in Chinese appetite for resources. My view is that China’s demand for raw materials will not collapse, but it will not grow at the same rate anymore or hardly grow at all, except for oil. Their demand for oil will obviously grow in the long-term. But for the industrial commodities, it will slow down meaningfully. And so the impact on other emerging economies where we have hardly any growth at the present time, will be felt. As is the case in the West, real growth will be very difficult for many Asian economies. - in July 2014

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.

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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.