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Dr Doom’s Mother-Of-All-Crises Looming
Dr Doom’s Mother-Of-All-Crises Looming
We are yet to see whether it will be a hard landing or a soft landing by the end of 2023.
Biden’s administration has shamelessly pumped thousands of billions of dollars into the state financial system for less than two years announcing even a brand new ‘New Deal’ and new financial incentives. One wonders if these measures make any sense and if they get any support from ordinary Americans? How do the money printing and continual and excessive borrowing reflect onto the U.S. economy, and does it have any effect on global inflation the way it is forecasted by Nouriel Roubini, an economics professor at NYU Stern, nicknamed “Dr. Doom” who is warning us that the mother of all crises is looming?
Time will tell whether these measures make any sense or not. They seem not to for the time being. Biden’s administration spent about 1,900 billion dollars to offset the effects of COVID pandemic and then 400 billion dollars for the unpayable student loans, them being a major financial issue in the U.S. economy. Student loans total at about 600 billion dollars and the growing trend is that there is an ever-increasing number of unpayable student loans. Meanwhile, 400 billion dollars have been invested to stimulate the climate change-related Green Agenda. Furthermore, the Biden administration has been announcing a brand-new New Deal, which would cost 4700 billion dollars but there does not seem to be any effect afterwards. Each plan is followed by a new one, which tends to be more prohibitively expensive, which in fact boils down to merely fulfilling the vacuous pre-election pledges for Biden’s voters rather than actual genuinely effective plans.
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Marc Faber: In the Age of Cyber-Terrorism, Every Investor Must Own Gold
Take it from “Dr. Doom”: own some physical gold and keep it out of the banking system.
Dr. Marc Faber, a legendary investor and the editor/publisher of the Gloom, Boom & Doom Report, is well known for his contrarian investing style.
In a recent Metal Masters interview with the Hard Assets Alliance, he noted that the biggest geopolitical risk for Americans today is not a conventional war but rather cyber-attacks that could take down the US power grid.
In such a scenario, gold would become an irreplaceable medium of exchange. But it’s not the only reason to own gold today.
Diversified Assets Outside the Banking System
Faber grew up in Switzerland right after World War II, a tough time that caused his family to distrust paper money and taught him the importance of precious metals as a safety net.
Faber remembers how his father talked about rich people as millionaires. “That, in the ‘50s and ‘60s and ‘70s, was a lot of money. Today, a million is nothing at all—small change. Unfortunately. When people talk about, ‘Oh, there is no inflation in the system,’ this is nonsense. Compared to assets, money has lost a tremendous amount of purchasing power.”
After working on Wall Street for over two decades, Faber’s assets consisted mainly of bonds, equities, and real estate. He says it was in the 1990s when he realized that “it’s good to have a diversified asset outside the banking system and not financially related” and began to purchase some physical gold every month.
The Fed largely ignores gold as an asset, he says, because “gold is an embarrassment to central banks.”
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Dr. Doom’s Back: Marc Faber Warns Markets Will Fall “Like An Avalanche… Trump Can’t Stop It”
Dr. Doom’s Back: Marc Faber Warns Markets Will Fall “Like An Avalanche… Trump Can’t Stop It”
“One man alone cannot make ‘America great again’. That you have to realize,” warns Marc Faber, the editor of “The Gloom, Boom, & Doom Report,” reminding the world that the US stock market is vulnerable to a seismic sell-off that won’t be caused by any single catalyst. His argument: Stocks are very overbought and sentiment is way too bullish for the so-called Trump rally to continue.
“Very simply, the market starts to go down. As it goes down, it will start triggering selling, and then it will be like an avalanche,” said Faber recently on CNBC’s Futures Now. “I would underweight U.S. stocks.”
Faber, a supporter of President Donald Trump, isn’t blaming the new administration for his bearish forecast:
“Trump, unlike Mr. Reagan, is facing huge, huge headwinds — including a debt to GDP that is gigantic, as it is in other countries.”
Faber lists rising interest rates and record earnings and margins as additional risks to the historic rally.
The Dow Jones Industrial Average closed at a record level for a twelfth consecutive session today with the S&P 500 to see the fewest declines in February than in any month since May 1990.
The investor said that markets in Mexico, Brazil, and Asia also have been picking up significant gains so far this year. However, Faber doesn’t expect the worst-case scenario for all countries that have been benefiting from a strong run.
“China looks quite attractive. For the next three months, money can flow into China. The economy, surprisingly, has begun to do quite well. We see that in retail in Hong Kong. We see that in the hotel industry, and we see that in demand for commodities,” he said.
Faber says that resource commodities such as copper and gold would probably bring the traders solid profits this year.
“When you look at Trump and his administration, and the way the budget is, I think further money printing down the line is inevitable,” he said, stressing that such a policy could push commodities even higher.
