Tuesday, September 2, 2014

Marc Faber: Don't Blame Rich For Asset Price Inflation

 Jason Burack of Wall St for Main St interviewed money manager, newsletter writer, investor, world traveler, author and Sprott Board Member, Dr. Marc Faber of the Gloom Boom Doom Report http://www.gloomboomdoom.com/ from his home in Thailand.

We apologize in advance for the call quality and how it was not always great.

During this 30 minute interview, Jason asks Marc if he thinks the lack of volatility in nearly all the world's major markets is due to central bank intervention.

Marc thinks volatility is beginning to pick up and will only increase going forward with a potentially larger correction coming sometime between new and March 2015.

Next, Jason asks Marc about Keynesian Economics and also the behavior of central bankers and politicians.

Marc thinks Neo-Keynesians like Paul Krugman are bastardizing the thoughts of Keynes' original prescription from the General Theory.

Jason thinks Keynes was more of a fascist and on certain issues Jason points out how Keynes says in the General Theory he agreed with Karl Marx.

Marc than talks about inflation globally, why asset price inflation is occurring, the Wealth Effect and how the rich are not to blame for the Wealth Effect.

Jason and Marc talk about how Silicon Valley and cheaper oil from the shale boom has given the US a major edge in the near term over its other economic competitors.

Marc talks about entrepreneurship and how despite the media talking about the successes the majority of people who try fail.

Jason argues that despite the large % of failed entrepreneurs and companies it's still good in the long term for the economy, society, etc as the winners still provide valuable goods and services that benefit millions if not billions of consumers throughout society.

Jason and Marc wrap up the interview discussing China, the commodities bull market and precious metals.

Marc thinks the long term commodities bull market is still intact for commodities on the supply side rather than demand driven in large part due to production costs rising rapidly nearly every year to produce metal, energy and food.

Marc thinks it's a near certainty that the US government will continue to impose more and more forms of capital controls or foreign exchange controls on its own citizens like FACTA.

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.