In this episode of China Money Podcast, returning guest Dr. Marc Faber, renowned investor and publisher of The Gloom, Boom & Doom Report, speaks with our host Nina Xiang. Dr. Faber played a game of Long & Short, where he spelled out his view on central banks, currencies and commodities, among other items. Then, he gave probabilities on a number of possible world events and explained his reasoning.
The U.S. will go into a recession by 2020
A: 100% probability. We are in a lengthy expansion already, far above
the average expansion in the 20th century. We have a lot of imbalances,
in my view a recession is inevitable. But unlike central banks, I do
not regard a recession as negative. It's like the human body, an economy
also needs a resting period occasionally to adjust. A recession is not
something that has to be avoided at all costs.
The European Union will break up by 2020
A: 80%. Economically, the EU would probably will break up. But it's
also a political issue as there may be lot of political obstacles to
complete a split from the EU. Some countries like Austria or France
would like to split from the EU, but if they could do it in practice is
not entirely clear to me.
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.