Sunday, February 28, 2016
Marc Faber: Gold is an honest Currency
Mike Gleason: (laughing) I just loved that. So why is it that most don’t understand gold and are so often quick to ridicule those of us who believe in it and view it as real money?
Marc Faber: Basically, gold is an honest currency. You can increase the supply somewhat through the opening of new mines and the exploration and the discovery of new deposit, but you cannot print it and double the supply of gold overnight. That simply doesn’t exist. And that quality of gold being a store of value is a disaster for the interventionists that we have at central banks and, by the way, in government. Because if you look at, say, government in 1900 and today, in 1900, U.S. total government expenditure as a percent of the economy were less than 8%. Today, they’re over 40%. So do you understand… the government is not representing people anymore – this is what we discussed before about the good showing of Sanders and Trump – but the government is representing itself. It is eating at the economic cake and by eating too much of the economic cake, the remaining economy, the private sector, cannot grow fast enough to boost overall growth rates.
Because the government doesn’t do anything to boost growth. It actually is growth-retarding with regulation and laws and all kinds of things. So basically, everybody – the media, the government and in the financial sector – detests and hates gold because it’s honest. The whole financial sector, they love money printing, and let me tell you why. Each time the market goes down, whether after March 2000 until 2002/2003, or after 2007… if the markets didn’t recover, the financial sector would earn late fees because they are paid according to the asset values and they’re paid according to performances. They love money printing and these are the people that are being interviewed on TV, you understand?
The TV, the media, the CNBC, and Bloomberg’s office, well, they’re not going to interview ordinary people… an electrician, a carpenter, a car mechanic. They interview the people that have a vested interest in money printing because they get performance fees and management fees from money printing. That’s why people on CNBC and so on and so forth hate gold.
- in www.valuewalk.com
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.
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.