Thursday, February 19, 2015

Greece cannot pay its Debt, it is Mathematically impossible

I think the Greek problem is real. In my view, it is less an economic issue than a political issue. Basically the US would hate to see Greece becoming or separating from the EU simply because immediately there would be Russian influence in Greece or Chinese influence, so it is a geopolitical issue more than an economic issue. Economically it is very clear. Greece cannot pay its debt, it is impossible, it is mathematically not possible and so a solution has to be found probably a compromise, probably the Greek politicians will be bribed by some handouts or whatever it is and they will continue to muddle through. The problem is that Greece should never have joined the EU in the first play and when it joined and first problem occurred, which was about four-five years ago, it should have been kicked out right away. Now the problem is not that larger and I would say this is a problem for the global economy. McKinsey recently published a study whereby global debts today are USD 57 trillion larger than in 2007. So all we have done is kicked the can down the road and the problems are still there, excessive debt will make it very difficult for the global economy to again grow in a sustainable way. in CNBC TV 18 - 20 Feb 2015

Click here to watch the full interview

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.