MARC FABER: Not Even Gold Will Be Able To Save You From What Is Coming

MARC FABER: Not Even Gold Will Be Able To Save You From What Is Coming

www.businessinsider.com

Marc Faber, who authors the Gloom Boom & Doom newsletter, is usually pretty bearish on stocks and bullish on gold.

Lately, though, gold doesn't seem like it can catch a bid.

(visit the link for the full news article)

I have to agree with Faber here. The money printing party under Obama is making multi-nationals even richer as they invest that money in emerging markets overseas.

He went onto say this:

When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn't flow evenly into the system.

Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession. More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S.

So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide.

People have been yelling about this bubble in the same way people yelled about the coming housing bubble. This crash will be worse than the housing crash.

Under Obama, the Fed has carte blanche and their flooding multi-nationals with cheap dollars. This is just taking wealth from Americans and transferring that wealth to multi-nationals especially in the financial sector.

If you're going to try and jump start the economy this way, you don't flood multi-nationals with cheap dollars. You give money to State run banks and Credit Unions with the stipulation that 85-90% of that money goes to local communities in the form of Business, Mortgage and Personal loans.

This way you boom Consumption in the local economy which will create jobs instead booming Wall Street and Multi-Nationals who will invest a lot of that money overseas.

www.businessinsider.com
(visit the link for the full news article)

Why are people so terrified of an economic crash?

Temporary crashes and dips are rough, yes, but that's mostly because the national and global economy is basically hostile to communities already.

The funny thing about humans is, the more humans work together, the less human they get.

The truth is, if you swept away the "big" markets, communities would grow big gardens to feed themselves and build houses for people without.

Think about a crisis time, let's say 50 people stranded on an island from a plane crash or something. The doctor doesnt go around asking people for their insurance cards. He goes around helping people. The one who can hunt doesn't set up a Wal-mart, he drags in a kill. The ones who can sew don't find minorities to work for pebbles to produce special logos on normal shirts and shoes, they just repair and make clothes for people.

Some day, the markets really will crash, for good.

And people will realize that these "wealth" markets have been hostile to them all along.

And people will work as communities, like people once did, to improve life for everyone.

PEOPLE will be what matters, instead of dollars.

Let the markets go, who needs them.

reply to post by TheBlackTiger


I know one liners are bad, but i have nothing to say but, 'Agreed'

Speaking of printing money, I know this has been happening according to what economists are saying about a currency war...and that this forces other big currencies to do similar tactics to keep the balance and I'm not sure what all the catches are that enables them to profit from this but we can just imagine the set backs. they were apparently trying to get out of the hole that our national debt has gotten us into by trying to play magician with the money.

Just a couple of things that have recently happened. BRICS is starting a new international development bank. I'm sure many of you know what this means. It means the world bank has competition and this COULD be what many of us have been hoping for... to shake these people up. Those who start oil wars.

a while back, China started buying oil from Iran in the Yuan, then oddly Saudi Arabia turned around and followed suit, but remember...it was STANDARD OIL who made he prospecting deal with the saudis in the 30s and started chevron and we made some of those people rich and they have terrorists in their countries and all sorts of crazy stuff going on but we NEVER shake our finger at them, because those terrorists work for us... even though some of them think they are working against us... then the deals we made in the automotive industry USCAR that suppresses clean cars to keep the petrodollar propped up, so when we are trying to make the whole world trade oil with the dollar, how did saudi manage to get away with this.

China is one of the largest consumers, that's why. We are so vested in saudi oil that we did that to scrounge some more, when ultimately it was just hurting the dollar more, but they were backed into a corner and had to get china to buy that oil. That just gave china more choices to buy oil in the Yuan. Brilliant! it's all downhill from there... but now they are starting and international development bank. It just keeps getting better.

You can read articles on how THE US ISN'T THAT DEPENDENT ON SAUDI OIL... SEE FOR YOURSELF. CHINA BUYS THE MOST.

Like we care.

what are you trying to say american media and journalism? that it's wrong to buy saudi oil or something... like they are the bad guys or have terrorists or something? Yet you've yet to bomb them... so why do we care again?

I haven't figured that out yet but i think it's supposed to convince the reader that we are not that interested in middle eastern oil so we don't start wars for that reason and we don't create terrorism... and are they inferring "hey, maybe china did all that...our hands are practically clean"

No, we can call a lot of the claims on saudi oil... our own. We CAN'T claim the same thing with Iran... nor Iraq (pre war... before oil for food and all that).

that didn't work very well, did it? you need a little more than BS to wash that oil off your hands.
We don't need to buy it, we need to make sure it sells because we are vested in it. We don't need to buy as much anyway, because people can't afford as much gas yet we are still making probably close to the same profits.

It's still a losing game and China is still ahead.

now what... wellll, printing a bunch of money didn't help... inflation didn't do the trick.

We are actually going to have to send our minister of finance to china to tell them to raise the value of the YUAN 20-25%...and that is exactly what happened.

on the same page I read that article there was a link that could take you to a page to buy yuan with us dollars. putting that crap in national headlines is practically a trade scam!

there are people in Asia who trade mostly with Chinese currency but have investment in American currency.... and they want to advertise AND demand that the trade value is going to change suddenly, MANUALLY... not by normal market fluctuations but MANUALLY change by 20 to 25 percent!

What chinas response was... I'm not sure but whatever they chose, it's all a part of their hand...and it just goes to show how the US is behind the 8 ball.

Suck it up.... because it's not Irans fault, but that is next on the list.

we get control of Irans oil... then through some program Iran will be trading oil with the dollar and once again... so will Saudi Arabia... check mate.

Not only are they playing these games, but they have gotten so desperate with it that every one in every trade sector can read how they should trade currency... or attempt it. How is that not one huge trade scandal facilitated by government?

Yeah... all those people do is play with money and make people hidden from your eyes to suffer for it!

This is very true for what the financial markets today call 'gold', investing in the price of gold will not save you because it is an ambiguous claim on a paper traded market.

You are far better off having your savings stored as Unambiguous Wealth in your own possession.

From Unambiguous Wealth - "Taking personal responsibility for your life's savings when you've always counted on "the system" to safeguard it for you is not an easy step to take. Converting your savings from ambiguous claims in the system (either dollar or gold-denominated) into unambiguous wealth is not without considerable hassle, risk and expense. But it has never been more important than right now. Conversion is early adoption, like buying the Dow sub-1,000. Conversion to unambiguous pieces you can possess is front running the reset, the global revaluation that could come at any moment. As a long-time reader wrote me just today: the window will be closed soon."

Originally posted by TheBlackTiger
Why are people so terrified of an economic crash?

Temporary crashes and dips are rough, yes, but that's mostly because the national and global economy is basically hostile to communities already.

The funny thing about humans is, the more humans work together, the less human they get.

The truth is, if you swept away the "big" markets, communities would grow big gardens to feed themselves and build houses for people without.

Think about a crisis time, let's say 50 people stranded on an island from a plane crash or something. The doctor doesnt go around asking people for their insurance cards. He goes around helping people. The one who can hunt doesn't set up a Wal-mart, he drags in a kill. The ones who can sew don't find minorities to work for pebbles to produce special logos on normal shirts and shoes, they just repair and make clothes for people.

Some day, the markets really will crash, for good.

And people will realize that these "wealth" markets have been hostile to them all along.

And people will work as communities, like people once did, to improve life for everyone.

PEOPLE will be what matters, instead of dollars.

Let the markets go, who needs them.

edit on 27-3-2013 by TheBlackTiger because: (no reason given)

What a truly wonderful place this world you describe sounds like, I hope it happens in our lifetimes and that the transition isnt too painful.

Beautifully put
Star for you

reply to post by TheBlackTiger


Couldn't agree with you more. Refreshing, and yet it will make too much sense for some folk.

Originally posted by TheBlackTiger
Why are people so terrified of an economic crash?

Temporary crashes and dips are rough, yes, but that's mostly because the national and global economy is basically hostile to communities already.

The funny thing about humans is, the more humans work together, the less human they get.

The truth is, if you swept away the "big" markets, communities would grow big gardens to feed themselves and build houses for people without.

Think about a crisis time, let's say 50 people stranded on an island from a plane crash or something. The doctor doesnt go around asking people for their insurance cards. He goes around helping people. The one who can hunt doesn't set up a Wal-mart, he drags in a kill. The ones who can sew don't find minorities to work for pebbles to produce special logos on normal shirts and shoes, they just repair and make clothes for people.

Some day, the markets really will crash, for good.

And people will realize that these "wealth" markets have been hostile to them all along.

And people will work as communities, like people once did, to improve life for everyone.

PEOPLE will be what matters, instead of dollars.

Let the markets go, who needs them.

edit on 27-3-2013 by TheBlackTiger because: (no reason given)

When did people ever work together without expecting something in return and when were there no robber barons or warlords?

So is this the plan you're here to promote? Crash the economies of the world so people must subsist on the scraps they can put together themselves? Kind of odd that so many are now dependent upon others for their sustenance under this administration. Where will the money come from to keep supporting all those people when no one has any more to give?

Ah I'm sure there's a plan. There always is. Or is there?

Originally posted by Bilk22
When did people ever work together without expecting something in return and when were there no robber barons or warlords?

While I'm no history expert, colonial type of times come to mind. The short periods that people get BEFORE the 'administration' takes over, and before things are commercialized. Like the internet a few years back. Or the people spreading west along the trails. Maybe that's not historically accurate, if it's not, I'm sorry.

And of course you should get something in return for your labor! That's a lot of my point.. What we have now, that is getting very little for what we do. Natural rewards, natural consequences. That's the way to go.

So is this the plan you're here to promote? Crash the economies of the world so people must subsist on the scraps they can put together themselves?

But would it necessarily be scraps? Building houses is a bit tough, I suppose, but it's not like there aren't efficient ways to house masses of people. Plus people would figure it out. As for food, I'm pretty sure that even now if communities instituted community gardens with labor duties due from the benefiting citizens (instead of money duties we have now), we could already feed people with high quality, high nutrition food that they aren't even getting now. How many people have said "I would eat better, but the affordable foods are all crap." That's true, and while people could take care of that for the most part by having their own garden, they won't until they HAVE to. But once they do HAVE to, people will be eating good. Once you've covered food and shelter for everyone willing to pitch in, you've already got a pretty sweet place. Just need to add a few modern comforts, maybe we could keep the internet running somehow, and things would be 10 times better than they already are.

Kind of odd that so many are now dependent upon others for their sustenance under this administration. Where will the money come from to keep supporting all those people when no one has any more to give?

Well, like I said, I think that anyone who wanted to participate in this type of system would pay in labor. So money might not really be a factor. Show up to weed the gardens, go home with food for your family. That sort of thing. Simpler typed than done, but you know what they say about necessity.

Ah I'm sure there's a plan. There always is. Or is there?

Some people just want to watch the world burn, and I'm one of them. I'm tired of living others' plans. I'd love to see what would happen if you threw them all away. Some time of chaos, for sure. Some would chafe, for sure. But probably it would be the people who were already living on the backs of others.

People have never yet failed to survive. I highly doubt the wall street numbers going down, the price of gold changing, the temperature going up, or any other "scary" black swan event would derail that.

Except, you know, if it killed us all right away.

The coming economic crash is a cycle greater than that of the 1930s Depression (Grand SuperCycle). People in the 1930s were more agrarian oriented (smaller communities; closer ties to agriculture including serious gardening and canning of food and storage in root cellars, etc). Money back then was "real" currency as well (at least the coinage in circulation if the notes could not be redeemed in specie). In addition to the real debt we are facing a virtual black hole of potential debt from the derivaties markets if "critical mass" of defaults is ever reached. It wont be pretty.....

BTW, regarding the valuation of gold: it is a good hedge for future purchases but going into hard times one should have those things needed to survive first; second, gold always goes to overvaluation as the channeled inflation hedging and speculation far exceeds the normal demand for gold (industrial and jewelry fabrication). In fact, one can argue that gold investment on one level has been disinflationary for the system as a whole as money has been taken out of the system that may have gone into other investments (demand deposits, real estate, etc) to be invested in gold (same for silver). Much is made of the increase in the Money Supply (M3) and Central Bank balance sheet expansion since 2008 and they have been meteroric; however, one can argue that these factors are in the market for gold values...why? Look at the charts of Total Central Bank Reserves (FRB, BOE, ECB & BOJ); they have been coming down this year from the highs. Also look at a chart on the Velocity of Money....it is at 50 year lows having taken out the base it established in the early 1960s. Like Force equals Mass times Velocity (in physics) so does the Force of Inflation require both the Mass of Money and its Velocity.

reply to post by TheBlackTiger

So shall we assume you already live your life this way? You farm your own food and live in a kibutz? Or are you among the first to visit the FEMA camps?

What you're suggesting will never work. There will always be a pecking order - even on your deserted island with the survivors from the downed craft. There will always be someone who wants to have power and control over others. It's human nature, like it or not. Heck, even in nature there's a queen bee who casts off her drones once they've served their purpose.

reply to post by neoholographic


Neo, I haven't got past your OP and follow up but had to congratulate you on a profound statement about chocking up the locals not the multinationals. That is an awsome way of looking not just at the usa problems but in many places globally.

What a top comment

I hope the globe crashes for a couple of reasons.

1) We will learn to be dependant on ourselves.

2) When we do that, we control our destiny, not selfish money hungry pigs.

3) We will learn how to live with the planet instead of abusing it.

I was just looking at CD rates on bank of america site and thought of something. i was noticing how a lot of their site models are asian and wondered if i heard it correctly in the recent past that china had acquired bank of america. i've read different things... so i'm not sure about that.

recently i was bored and did something to amuse myself.

i was given a tiki torch around the 4th of july last year...and it is red and blue with white stars, but it was made in china. I thought I should paint it because all that faded and was looking kinda crappy and it's just a bamboo torch so it wouldn't be like spray painting a car or anything...and while looking at it and thinking of the irony of it being a torch for the 4th cook outs and what-not, it's made in china...so a light bulb went on... I'll paint it red with yellow stars and i couldn't stop giggling while i was doing this. i put a big yellow star on the cap and four stars in a semi circle on the side and put the gold "made in china" sticker by the stars and sent a picture to my mother to see what she thought... it actually looks pretty good, i think.

Ok.. I'm a cynic and a bit of a punk at times so i thought it was hilarious... it's concept art. It's my ode to the economy.

So I was wondering... bank of america is one of the US biggest banks. It got big when joined with one of the italian banks early 1900s and it's got a strange history behind it that really makes me scratch my head but i will have to read more into it.

WHAT IF... china really bought bank of america. Wouldn't they technically be entitled to change the name? What are they trying to say with these asian woman all over their site? I think it's kinda funny. Are they trying to stick it to the man?... rubbing our faces in it?

So lets say we wake up one day and go to the bank and see that they changed their sign and now it's BANK OF CHINA.

There would be RIOTS... People all over the place would be screaming how communists were taking over.

and it's just a company...we have plenty of companies with china in the name but most of them are restaurants, but change bank of America to bank of CHINA and see what happens.

I wouldn't be happy about riots but at least it would expose people with some very short thought processing.

I just want to see what would happen. I'm mean hell... it beats bombs being dropped on your head.
It's just a damn name...and now maybe it's chinese people who own it...so?

I think it's funny as hell because those old time swindlers got us into this crap... and to try to get out of it they send their own to go fight wars. They damn well ought to be able to handle "Bank of China" without dropping a damn bomb or forming a coup, but there's only one way to find out.

We can't make bank of America change it's name for some laughs but we can all exercise civil disobedience.

We can show them what we think about loyalty to the symbols on the currencies that enslave us... when what is important are people, their lives and their feelings.
We can take them down to bare bones by legally avoiding taxation. We can refuse to bow to their ideals without feeling guilty or like a traitor, because being a traitor to a flag is nothing compared to being a traitor to other living beings who've done you no wrong... and that's what they do... and expect YOU to do as well, just to survive.

You should only be combative towards those who do you harm... and that is the industry, the economy, the men of money and power... they stacked it against us all to squeeze out every last drop and when we're all dried out, they'll send our own to kill people they don't even know.

I read a comment on a site that said "destroying the rich will not help the poor"...what?

If they are rich and greedy... then yes and many rich people are very greedy. it's how they got rich. They're greedy and scared and the only thing that makes them feel strong is to count their money. They keep others from having what they need... only to get richer and then others do without....imbalance.

that saying is like saying... destroying the rapists won't help the potential rape victims....what?

putting out the fire won't help those who are about to get burned....say what?

yeah... someone will always get to the top, but in the here and now, we are ripe for a grand lesson that history will not forget anytime soon... and more greedy will rise... sure, but the age of non renewable oil will be over and if mankind survives, we will not ever forget this. We will get more enlightened... or we will die as a species. We're out of excuses at this point. that is why this is happening NOW... welcome to the age of information. things will never be the same, pecking order or not... and if the next phase is not the end all- be all, we can still keep fighting and trying... but in the here and now, change is due and change will happen. like it or not.

reply to post by DarknStormy

Many who will be forced to be "dependent on themselves" will turn to taking what you have prepared for yourself and your family.....this will come from lone wolves seeking to feed their family their next meal to roving gangs seeking to pillage and steal from those that have to "officially" sanctioned confiscation from the state (govt) to redistribute to those that have not. They may even come to you and they will be hungry and angry so be careful what you wish for.......

Originally posted by Bilk22
reply to post by TheBlackTiger

 

So shall we assume you already live your life this way? You farm your own food and live in a kibutz? Or are you among the first to visit the FEMA camps?

What you're suggesting will never work. There will always be a pecking order - even on your deserted island with the survivors from the downed craft. There will always be someone who wants to have power and control over others. It's human nature, like it or not. Heck, even in nature there's a queen bee who casts off her drones once they've served their purpose.

Yeah keep it up, people have always raped and killed too, let's encourage this some more while we're at it! Why imrove our species, or at least try to, when we could all just complain about how horrible we all are!

Love the attitude! So much better than being positive, looking for alternative systems that might actually work if enough people were to give it a chance!

You bore me, sorry, I like people who see ways out, even if it might be a bit utopian, its what got us everything positive we take for granted nowadays, but lets just ignore that, mankind sucks, lets keep comaring ourselves to simple insects who live in hyves because they would not survive on their own, that really will help.


Thank you tiger for the great post, though as usual it quickly has to be shot down by someone who sees the ever repeating evil in mankind and therefore, ironically, also keeps it alive and well. This guy probably either cant survive without someone telling him what to do, or wants to tell others what to do, as I really dont see another reason to keep this idea of humans being intrinsically evil alive.


Be the change you want to see in the world, for some, its all about making mankind never forget its past, and making sure we'll never learn from our mistakes

I like to think mankind is not evil, some people are plain psychopaths and for some reason, those people have been in power for god knows how long time to weed them out and put some good, honest people in those positions, people with enough intellect to NOT let evil take them over.

Can we try that for a change? Or would you miss the constant injustice too much? Must be a reason why you hold on to that idea so much.

Originally posted by neoholographic
Under Obama, the Fed has carte blanche and their flooding multi-nationals with cheap dollars.

Its not just "under Obama".

They have controlled this nation for decades which is why Ron Paul wanted them to be audited.

Reagan ran on returning to a gold standard, even establishing a gold commission.

He got a bullet for his troubles.

reply to post by neoholographic
seriously enjoyed reading your statements and info on economical repair,wish we had more people on capitol hill that had these agenda's in mind we would all be better off.

If the crash is bad enough, even gold will be worthless.

If you had some gold and I had some food, why would I want to trade my food for your gold? I can't eat your gold. It's heavy, and have to securely store it.

The best way to prepare and help yourself out is to know a valuable skill. Do you know how to weld, fix cars? Perhaps you're an RN or a doctor. Those people will always be given food to surive in trade for the skills.

If everyone's broke, people won't want to be giving up their essentials for some shiny pieces of metal.