Monday, April 6, 2015
The New World Economic Powers are going to be China, India and Brazil
ET Now: So why do not you expand on that -- where is the boom and where is the doom?
Marc Faber : The world has become or has always been very complex. The major trends in the world have been and continue to be the shift in the balance of economic power from the old world -- in other words, Western Europe and the US -- to the new world, which are essentially emerging economies, notably of course China, India, Brazil and other emerging economies.
It does not mean that the west is going down in absolute terms, but in relative terms for sure when you consider the 19th century and the 20th century until about 1950. Between 1780 and 1900, colonialism in India led to a terrific de-industrialisation. The economy became less and less important as an industrial power.
The same went for China and this has changed now starting about 20 years back, and countries like India and China are becoming relative to the rest of the world and relative to the western countries, which are much more important economically. This leads to tensions. We have tensions in the Middle East. We have tensions regarding Ukraine and we have territorial disputes in Asia because for the old world, it is very difficult to understand and appreciate the changes that are occurring. They still think they can come in with aircraft carriers or with bombers and scare everybody. But that is no longer the case.
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.
Posted by Nicole Bourbaki